Financing for my customers

[mrj567`]

I want to offer financing for my customers on the more costly service/new installs. Do any of y'all offer financing in this way? I've heard it's an option but not sure how it works or who to use to finance them. I'd imagine like any other financing their interest rate depends on their credit and other factors. I've been in business 2 years and have had several larger service projects I could've landed if the customer had the option of financing.

I'm wondering how much time it adds to the project while waiting on the customer to get approved. Also for the ECs that offer financing how do you feel about it overall and what institution do you use?

 

[brantmacga]

If you have any HVAC contractor friends, I'd ask them about it. More common in that industry.

 

[petersonra]

There are all kinds of banks, finance companies, and credit card companies that will be happy to finance your customers. Some will offer 0% interest as long as the borrower is never so much as 30 seconds late with payments.

You can even get false teeth with these kinds of arrangements.

The only advice I would offer is don't get yourself personally involved in the financing. Make sure the customer knows it's between them and the bank or finance company.

It is common in the remodeling industry. Flooring is often sold this way. You might want to talk to people who are actually engaged in using these kinds of financing means. Anytime you see an ad for carpet that says 3 years no interest, that's what is typically going on.

 

[mrj567`]

There are all kinds of banks, finance companies, and credit card companies that will be happy to finance your customers. Some will offer 0% interest as long as the borrower is never so much as 30 seconds late with payments.

You can even get false teeth with these kinds of arrangements.

The only advice I would offer is don't get yourself personally involved in the financing. Make sure the customer knows it's between them and the bank or finance company.

It is common in the remodeling industry. Flooring is often sold this way. You might want to talk to people who are actually engaged in using these kinds of financing means. Anytime you see an ad for carpet that says 3 years no interest, that's what is typically going on.

I appreciate it! That helps out quite a bit. I've considered asking customers who can't afford it if they'd like to use a credit card but I figure they would if they could. It won't hurt too much to at least start asking though. Thank you

 

[mrj567`]

If you have any HVAC contractor friends, I'd ask them about it. More common in that industry.

I was thinking about asking a solar installer I know for the same reason, the high ticket price on those installs. I feel like most ECs just say too bad if you can't afford it at the moment. I just want to offer a solution to the customers that seem like decent people, then it's just too bad for the rude ones; should've been nice!

 

[zbang]

The big thing is offering an interest rate lower than credit cards. Make sure you spell out that you're not loaning the money, and finance company is (assuming that's how the things are set up). Lots of _{fine print} to read, and make sure your accountant is involved with whatever gets set up.

 

[Dzboyce]

If you have any HVAC contractor friends, I'd ask them about it. More common in that industry.

Here's one example

FTL Finance - Financing packages for every home improvement project

With FTL, you choose what types of financing programs you want to offer — so you can make sure it’s always the perfect fit.

ftlfinance.com

I'm set up with them but have never used them. They claim a 15 minute approval. Lower interest rates than a credit card, but still pretty high. You get paid in full as soon as you submit an invoice. No recourse. You do have the option to buy down the interest rate also.