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Old 06-11-2019, 08:22 AM   #1
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Do any of you guys offer financing to your customers? I have some customers that have about 75% of a septic repair to pay and are willing to pay it all up front, but would need to finance the rest.

There are a few companies out there that offer but I would want to make $ if I messed with it.

Thanks.


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Old 06-11-2019, 08:39 AM   #2
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If you have large sums of money hidden away and prepared to lose many times when people don't pay go ahead. I'm being sarcastic.

Ask yourself this : If the interests of all the good paying customers rake in a lot more than the money that is lost because some will never pay.

What's your threshold of insolvency?
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Old 06-11-2019, 09:43 AM   #3
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I use PayPal for my credit card transactions. If the customer asks me about financing I tell the to apply for it on the PayPal website. They usually offer a 6 months no interest plan.

So far I've had a few sign up for it to do large jobs. I haven't had issues with getting payment, knock on wood.
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Old 06-11-2019, 08:54 PM   #4
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offering financing yourself ? your out of your mind..pushing them onto a finance company where you have nothing at risk is ok but you will waste alot of time...if they cant pay for it let them get a loan and do all the running around and paperwork...not worth your time, there are plenty of customers with money to pay for what they need...
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Old 06-11-2019, 09:49 PM   #5
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We offer financing through Wells Fargo, its called the Home Projects Card. Management pushes us to offer it pretty hard. Customers can do 9.9 for 65 months, or interest free for 12 months, with a min payment. After 12 months the interest skyrockets to 21 plus.

It is a pain in the ass to sit there while the customer goes through the website approval process, then forgets to give me the Auth number and Acct number, then I have to call the office and get them to retrieve the numbers, then fill the paperwork which has to be 100% mistake free.

Every time they use the "card", the whole thing starts over again because they have to choose the 9.9 or 12mo interest free.

Overall, its a pain in the ass. But is has swayed many a customer into moving forward with work.

Many times it comes down to somebody needing a water heater, financing it, and instead of getting bare bones, they decide to throw in a recirc pump/loop because it only adds like 6 bucks to the payment, or booster for more capacity. Or just saying screw it and going tankless cause it's only 20 bucks more a month.

And so on, and so on.

I doubt there is any financial risk on our part, or we wouldn't push it so hard. If they want to finance, we do the paperwork first before starting work though!
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Old 06-12-2019, 03:32 AM   #6
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We offer financing through Wells Fargo, its called the Home Projects Card. Management pushes us to offer it pretty hard. Customers can do 9.9 for 65 months, or interest free for 12 months, with a min payment. After 12 months the interest skyrockets to 21 plus.

It is a pain in the ass to sit there while the customer goes through the website approval process, then forgets to give me the Auth number and Acct number, then I have to call the office and get them to retrieve the numbers, then fill the paperwork which has to be 100% mistake free.

Every time they use the "card", the whole thing starts over again because they have to choose the 9.9 or 12mo interest free.

Overall, its a pain in the ass. But is has swayed many a customer into moving forward with work.

Many times it comes down to somebody needing a water heater, financing it, and instead of getting bare bones, they decide to throw in a recirc pump/loop because it only adds like 6 bucks to the payment, or booster for more capacity. Or just saying screw it and going tankless cause it's only 20 bucks more a month.

And so on, and so on.

I doubt there is any financial risk on our part, or we wouldn't push it so hard. If they want to finance, we do the paperwork first before starting work though!

like I said you waste alot of time doing paperwork and if they get denied credit you get nothing in return, but if you add a service fee for financing and a fee for your time if they get denied it has a place in trying to sell a job...
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Old 06-12-2019, 12:49 PM   #7
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I offer financing through a Local company.
Same idea of 0% for the first 12 months then it’s high interest.

The process takes about an hour and I usually start the process then hand it over to the finance company. I get paid next day and have never had an issue.
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Old 06-12-2019, 06:26 PM   #8
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like I said you waste alot of time doing paperwork and if they get denied credit you get nothing in return, but if you add a service fee for financing and a fee for your time if they get denied it has a place in trying to sell a job...
Well, I don't do the paperwork till they get approved on the website, so I save that hassle until it's going to pay off. I offer financing on most everything above 1000 bucks, but maybe only 10% use it. Most pay by CC.

I imagine the amount of work won offering financing outweighs the time lost doing the paperwork, especially big ticket items. That is a reality of life in the world we live in today.

We have a coupon for clearing a main drain blockage for 99 dollars, oh, why yes, a camera of the line is "included" in the 99 dollars. I don't even feel like unloading the machine for 100 bucks. But the reality is that once I get the water to go down, and the camera guy shows the roots or broken pipe or whatever is causing the blockage. He is right there to offer options for repair. Did I mention that our "camera guy" is also the sewer sales guy? If you are presenting a 10,000 dollar main sewer replacement, being able to offer financing helps, a lot.

lol, it's quite a racket.

We are flat rate, our "sold hour", or "Billable hour" has all those things factored into it already. The time it takes to great the customer, the time it takes to diagnose, the time it takes to work up options for repair. The "wrench time", the clean up time. All of it accounted for and averaged out over time (if management is doing their job and pricing things correctly).
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Old 06-12-2019, 11:30 PM   #9
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Well, I don't do the paperwork till they get approved on the website, so I save that hassle until it's going to pay off. I offer financing on most everything above 1000 bucks, but maybe only 10% use it. Most pay by CC.

I imagine the amount of work won offering financing outweighs the time lost doing the paperwork, especially big ticket items. That is a reality of life in the world we live in today.

We have a coupon for clearing a main drain blockage for 99 dollars, oh, why yes, a camera of the line is "included" in the 99 dollars. I don't even feel like unloading the machine for 100 bucks. But the reality is that once I get the water to go down, and the camera guy shows the roots or broken pipe or whatever is causing the blockage. He is right there to offer options for repair. Did I mention that our "camera guy" is also the sewer sales guy? If you are presenting a 10,000 dollar main sewer replacement, being able to offer financing helps, a lot.

lol, it's quite a racket.

We are flat rate, our "sold hour", or "Billable hour" has all those things factored into it already. The time it takes to great the customer, the time it takes to diagnose, the time it takes to work up options for repair. The "wrench time", the clean up time. All of it accounted for and averaged out over time (if management is doing their job and pricing things correctly).

I guess by now they have stream lined getting credit checks and making sure the person can pay, back when I looked into it( over a decade ago) it looked just like too much of a hassle to get involved in....
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Old 06-13-2019, 12:30 AM   #10
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Back when I worked for the big companies they used Wells Fargo for financing. It was pretty streamlined. I'd get them to fill out the paper application and then call into the automated system while I was there with them.
The whole process took no more than 20 minutes. Even faster if I was returning to the house to get the contract signed and they had already signed up online. Then I would just need the account number to call in for approval. That took about 5 minutes.

We had an application fee of $29 which I never charged. Most of the jobs I sold were for several thousand dollars so I didn't feel like adding another $29 to that. It just seemed petty.
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