# I Would like to offer financing to my customers



## ABresources (Aug 28, 2012)

Hows it going I am an licensed and Insured contractor, I am doing a lot of kitchen and baths lately with an bunch of customers asking if I offer financing I would like to start I have called many company's most require 500k a yr in sales are their any that have no minimum


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## jamestrd (Oct 26, 2008)

start accepting CCs..that will be a start...


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## SawContractor (Aug 26, 2012)

Typically no one will fund small projects like that. Construction loans are usually larger, meant for additions and such. Credit cards are probably the only option for smaller projects. They should be able to purchase all finish materials on a CC anyway.... 

There are a lot of companies that can get you set up to accept credit cards. I believe Costco is one of them. I use Merchant Warehouse


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## Keeyter (Sep 18, 2010)

1. I'm not a bank - if they were credit worthy tell them to go to the bank. If they don't way too take a sharpie and write "Goodbye" on a stack on Hundreds. 

2. If you are going to charge interest above what is allowed by law for non payment of invoices and carrying balances there is a bunch of headaches and regulations involved. Not to mention the added accounting.

3. If your just a nice guy who is willing to take the chance with your money, WHY ARE YOU WORKING! Go to Miami for the summer. 

Like I said, if they have credit or can get credit use that. Don't re-invent the wheel cause you will end up without yours. Accepting credit cards is as far as I will go.


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## griz (Nov 26, 2009)

Keeyter said:


> 1. I'm not a bank - if they were credit worthy tell them to go to the bank. If they don't way too take a sharpie and write "Goodbye" on a stack on Hundreds.
> 
> 2. If you are going to charge interest above what is allowed by law for non payment of invoices and carrying balances there is a bunch of headaches and regulations involved. Not to mention the added accounting.
> 
> ...


There is *REALLY* good money if you can self finance jobs...

I will readily admit it is not an opportunity everyone can/should take....but neither are a great many investments...

I have never been burned on a note...:thumbsup:


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## Keeyter (Sep 18, 2010)

griz said:


> There is *REALLY* good money if you can self finance jobs...
> 
> I will readily admit it is not an opportunity everyone can/should take....but neither are a great many investments...
> 
> I have never been burned on a note...:thumbsup:


Also dependent on the type of Customer you have and your screening ability. You may have the Skill and Client base to draw from that makes it less risky...


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## SawContractor (Aug 26, 2012)

griz said:


> There is *REALLY* good money if you can self finance jobs...
> 
> I will readily admit it is not an opportunity everyone can/should take....but neither are a great many investments...
> 
> I have never been burned on a note...:thumbsup:


I don't think he's asking about self-financing though. I think he's looking for a finance company to work with him (him being the broker) to get jobs financed for his customers. He would not be the lender, just the broker.


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## griz (Nov 26, 2009)

Keeyter said:


> Also dependent on the type of Customer you have and your screening ability. You may have the Skill and Client base to draw from that makes it less risky...


*Yup...:thumbsup:*



SawContractor said:


> I don't think he's asking about self-financing though. I think he's looking for a finance company to work with him (him being the broker) to get jobs financed for his customers. He would not be the lender, just the broker.


I agree, my response is just another take on the question.
Like I said not for everyone...


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## Keeyter (Sep 18, 2010)

SawContractor said:


> I don't think he's asking about self-financing though. I think he's looking for a finance company to work with him (him being the broker) to get jobs financed for his customers. He would not be the lender, just the broker.


A self proclaimed selective reader wrote that, forgive him. I know nothing about Finance Companies - obviously


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## Acres (Feb 12, 2011)

> There is REALLY good money if you can self finance jobs.


..

Griz throw down an example or scenario. Maybe I'm missing something. I'm was thinking the most interest you could charge would be refi type rates or prime plus one or something like that. :blink: ..


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## greg24k (May 19, 2007)

Today there is a lot of credit issues going on, and if you look around, there is not many of your competitors offering financing this days. With that said I would call a few local banks and ask them about construction financing, or find someone locally who does that and refer them to your customers. 

If you think about it there is not much benefit to do that, it will cost you more to carry a loan, then you will profit, not to mention the dead beats you will encounter... the money you layout for material, you have to layout and carry, etc.

In addition, if you do that, you have to provide financing to most of your clients, so if you have a job that cost a few grand, why bother providing clients with financing. If the HO don't have 2k for a job, then is that someone that you want to do the work for? I doubt it.

With that said, you break the job up in payments anyway, so offer to take CC like others suggested or let them get a loan, this way you got your money, and let the CC or bank worry about collecting.


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## CITY DECKS INC (Sep 4, 2012)

i take paypal. 2.5% flat no monthly fees. use 5-6 times per yr. make sure you ask in the pregual how they are paying to add the 2.5. or just fatten up your rates to make sure there are no surprises.


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