# Do You offer financing?



## ShellBuilt (Dec 4, 2010)

I am being asked by a lot of clients if we offer financing. We have never offered it in the past but with the way things have been and the increase of clients asking for it, I am looking into it. Does anyone have any recommendations for a financial company that you have had good luck with. Or any advise if this is a good move to make.


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## mmike032 (May 30, 2007)

personally, not no, but hell no
but I'm a just a small biz and have no intentions of working for someone that doesnt have the funds to pay for a project


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## cork-guy (May 1, 2010)

ShellBuilt said:


> I am being asked by a lot of clients if we offer financing. We have never offered it in the past but with the way things have been and the increase of clients asking for it, I am looking into it. Does anyone have any recommendations for a financial company that you have had good luck with. Or any advise if this is a good move to make.


Financing is a great addition to your business; especially if you have a lender. This means you'll get your money guaranteed and gives customers a better chance to get all the work they want done at one time. I would avoid in house financing, since this requires you to pay all costs up front and accept monthly payments.


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## ShellBuilt (Dec 4, 2010)

I am definitely looking for an outside lending company for our financing. Just not sure where to find these companys. Was looking into GE Money, anyone use them?


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## Zatol (Dec 4, 2005)

I have looked at GE Money... Their costs seem high. There is a finance charge to the homeowner as well as a charge to the contractor. There is also a minimum charge to the contractor for each month that the contractor does not bring to GE $4000 in financing. At least, that is what I remember from the paperwork that they emailed to me. I am beginning to look at www.thathomeimprovementguy.com , he puts contractors and lenders together. He also charges $495? To join sign up for his services.


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## nlgutters (Dec 18, 2007)

ShellBuilt said:


> I am definitely looking for an outside lending company for our financing. Just not sure where to find these companys. Was looking into GE Money, anyone use them?



With most if not all of them you have to do a certain volume. Usually 750k a year i believe.

GE from what i understand is hard to get people financed.

Who use Ener bank and have good luck with them. I also know people who use them and can never get anyone financed.

If your average ticket is under $7,500 it seems easy to get financed. Over $10k people seem to have trouble.


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## Bill Z (Dec 10, 2006)

*Use a local bank*

Contrary to what you read in the news, your local banker wants to loan money to your customers. You can create a relationship with a local bank by putting together a packet that includes your financial statement, a couple years tax returns, your insurance coverage, along with pictures of your work and references from suppliers and customers. Do your homework before you make the first ask. The bank just wants to have confidence that you are legit.

Select several small banks, and introduce yourself to a loan officer and explain what type of people you usually work with. Talk about the home values, age of your customers, approximate family income, and size of your projects.

Don't believe what you read about banks being tight with loans! Banks can't make a profit unless they make loans. Your customers need at least 80% equity in their home, a good credit history, and less than 35% debt-to-income ratios. 

Get a payment calculator so you can provide an approximate payment for your customer. Write the contract "pending credit approval". Have the bank call your customer to set a time for them to meet at the bank to actually take the credit application and work out the best deal for the customer. Have the bank confirm in writing, that the loan is approved and how the money is to be dispersed. 

If your customers are creditworthy, the bank will be thrilled. Many times the bank will refinance the original mortgage and add in the amount of your work so the customer ends up with a lower payment than before you do the work. 

It's really about you showing the bank you are a legitimate business who is simply providing financing for your customers. Don't let the bank be intimidating to you, you are helping them just as much as they are helping you.


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## detroit687 (Sep 4, 2008)

Hell no I'm not a bank


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## BamBamm5144 (Jul 12, 2008)

Have to in todays economy. Credit Cards and up to 18months no interest. Got a call a few hours ago, lady decided to go with us and wants to Finance. 300 a month with no interest is better than 5k at once. Even if someone can pay for it, they still may want to finance incase an unexpected expense pops up right after

I don't recommend thatimprovement guy or what not. High interest rates for the consumer. I looked into GE Money and they want a lot of stuff and don't seem honest. Not only that, the lady was really rude and you need to do a certain amount of financing a month as already mentioned.

Guys, check into Enerbank. I used to use them through GAF but that program stopped. They still offer financing and I just went through them again. You get money quickly, fees are there of course but they aren't too bad. They offer up to 18 months of no interest financing. Now remember that you have to include what they charge you into the price of course so it is always good to ask how they plan to pay while on the initial call. There is a 495$ one time sign up fee. All you do is call the assigned number, they ask you for your information. You tell them and then hand the phone to the customer. They ask a lot of personal money questions, so it is best to let the customer know beforehand that you will leave the room until the call is over. Of course, this depends on their credit score and people with under 630 are unlikely to get any.


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## ShellBuilt (Dec 4, 2010)

I had two different clients last week tell me at the closing table that if I had financing they would sign right now. One even said they would choose the kitchen option that was $3K more. The other said they would have to wait for a couple months to do it and that they were going to go to the home show this weekend to get "ideas", I think we all know what that means. First company that offers financing will probably get my client.


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## BamBamm5144 (Jul 12, 2008)

ShellBuilt said:


> I had two different clients last week tell me at the closing table that if I had financing they would sign right now. One even said they would choose the kitchen option that was $3K more. The other said they would have to wait for a couple months to do it and that they were going to go to the home show this weekend to get "ideas", I think we all know what that means. First company that offers financing will probably get my client.


What's your reason for not trying to obtain it?


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## ShellBuilt (Dec 4, 2010)

BamBamm5144 said:


> What's your reason for not trying to obtain it?


That was my point of starting the thread. I was hoping to get suggestions on good companies to use for financing. 

Thanks for the help guys. Going ot make some calls today.


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## DPCII (Mar 14, 2010)

ShellBuilt said:


> I had two different clients last week tell me at the closing table that if I had financing they would sign right now. One even said they would choose the kitchen option that was $3K more. The other said they would have to wait for a couple months to do it and that they were going to go to the home show this weekend to get "ideas", I think we all know what that means. First company that offers financing will probably get my client.


Maybe I'm the glass half empty guy, but what does that signal to you about your clients if they are relying on you to give or get them financed as opposed to getting it themselves?


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## ShellBuilt (Dec 4, 2010)

DPCII said:


> Maybe I'm the glass half empty guy, but what does that signal to you about your clients if they are relying on you to give or get them financed as opposed to getting it themselves?


I understand what you are saying and we have not needed to offer financing in the past. Most my clients in the past just brought the money, I usually don't know where it came from. I think the times are changing and there are less of those clients spending thier money or they don't want to give up their cush in the bank account. Also thier investments are shakey and don't want to mess with it. Lost several jobs to peolpes investments tanking. Some people are just lazy and if it is easy to sign up for a payment plan, they will do it. 

I don't know if it is the right thing to do but I can't see letting buyers walk. The way I see it is if the finance company is taking the risk and I just have to do a little more work to make the sale happen, why not. If I was getting sales like 2 years ago, I wouldn't worry about. But that is not the case now.


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## tbronson (Feb 22, 2010)

Ugh. In God we trust. All others pay in cash.

Why would you want to get in the middle of this kind of thing? That said you will want to look at HSBC Bank or GE Money. Both are options for you but there could be some major headaches for you. It comes down to what business are you in? Construction or Banking?


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## BamBamm5144 (Jul 12, 2008)

tbronson said:


> Ugh. In God we trust. All others pay in cash.
> 
> Why would you want to get in the middle of this kind of thing? That said you will want to look at HSBC Bank or GE Money. Both are options for you but there could be some major headaches for you. It comes down to what business are you in? Construction or Banking?


I don't get that. Why wouldn't you finance? The job that just called me 10 minutes ago wants to finance their project. No one else offered it. I get paid the minute I'm done and it's up to the finance company to get their money from the HO.


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## lawndart (Dec 3, 2006)

BamBamm5144 said:


> I don't get that. Why wouldn't you finance? The job that just called me 10 minutes ago wants to finance their project. No one else offered it. I get paid the minute I'm done and it's up to the finance company to get their money from the HO.


Offering financing is an excellent Sales, and Marketing tool. I've been looking into it recently. There are fee's that vary with each company, and more paperwork, but it should help me find more customers. Well worth it IMO.


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## Bastien1337 (Dec 20, 2010)

absolutely, a bit up front some in the middle and then the rest at the end.



that is financing.




How many jobs you do where the client pays all up front


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## HILGuy (May 26, 2011)

This is a really good thread for the current economic climate. I have been in Home improvement Finance for over 20 years. Many programs for contractors have come and gone and it really is a challenge for most contractors to find a good and reliable nationwide source for good and bad credit home improvement loans. AMS Financial in Charleston SC fits this bill and can be found at myprojectloan.com they also have a pool financing and pool loan site at mypoolloan.com. As far as bad credit options i would say that unsecuredloandepot.com is where its at.


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## DarrenSlaughter (Jul 16, 2010)

Given the fact that the ATM machines people call equity in their homes has all but dried up, and the credit cards are beat to hell, offering any type of financing arrangements gives you a competitive advantage over other contractors that don't. 

Think of it in selfish terms, if you threw a lender a couple of deals each month, who do you think he is going to think of when he is sitting down with Mr. and Mrs. Smith who want a loan, but don't have a contractor yet?

Find financing opportunities in your community and make money from both ends for the win! :thumbsup:


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