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Hey guys I was wondering if any of you have tried payment plans to help out your customers. If so how it go? I was thinking about trying it, just having them pay for matieral then make paments on labor.
 

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Not a bad idea if you can afford to do it. I would strongly suggest looking at your lien laws first. Where I live you have to place a lien within 90 days of last completed work. So for me it wouldn't really work. But if you have a full year or even 6 months, I could see a lot of people signing on to making payments.

Also have you looked into a 3rd party financing company that you could sign on with. A lot of furniture, car stereo, and appliance stores use these types of companies to do their "zero down and zero payments for 6 months OAC" sales. If you have strong company financials and have been in business for a while these companies will usually back just about anyone. Sure, your customers will pay a higher interest rate, but at least you will get your check once the work is finished.
 

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Dumb. What do you do when they dont pay you each month? How to get you get that money. How about your target homeowner is someone that can pay you the full amount when the job is complete?
 

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I agree, BB. Too many buy on credit irresponsibly and its a huge problem in this country, especially now. And, there are just as many of those types in the poor neighborhoods as the wealthy ones.
 

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Yes, that is why its best to get your down payment up front before you start any work. If you are in a trade where you can get paid for percentages of work completed before you start the next one, even better. I increased the down payment amount this year because of things like that. If you do any financing, make sure it is through a bank. I use enerbank. They pay me when the job is complete. If the homeowner doesnt pay them back, it is not my problem and I at least have my money.
 

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Carpe Diem
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Yes, that is why its best to get your down payment up front before you start any work. If you are in a trade where you can get paid for percentages of work completed before you start the next one, even better. I increased the down payment amount this year because of things like that. If you do any financing, make sure it is through a bank. I use enerbank. They pay me when the job is complete. If the homeowner doesnt pay them back, it is not my problem and I at least have my money.
Yep :clap:

You are a contractor, not a banker.

That's as silly as a bank thinking they could do the labor too since they're already loaning the money :blink:
 

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Scooter
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This is why I bring information packets (from a bank I favor regarding Title 1 home improvement loans) when I am delivering a proposal.
NEVER let a customer get ahead of you on the money!
 
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Every job we do, we get half up front and the remaining balance upon completion. With what is going on with the economy, even the best homeowner with the best intentions can fall into trouble, which now becomes your problem as well.
I find that if you stick to a routine it produces the best results.
Have i lost a couple jobs by not offering payment plans? Maybe one or two a year at most. But that is less painful than me paying for someones roof!
 
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