View Full Version : Monthly Financing
03-16-2003, 12:48 AM
Does anyone offer financing for customers to make monthly payments for larger jobs? If so whats the going percentage rate?
You may want to look into accepting dredit cards instead. Otherwise, you are financing people with both your money and hard work without knowing if/when you'll get it.
Credit cards give you full payment and have to collect on their own. This also is a great deal closer because many people will go beyond their budget when using a credit card.
If you finance people's landscapes yourself, you will not be in business for very long.
03-16-2003, 10:12 AM
ALCA offers a program for financing residential landscaping through Wells Fargo.
As a seasonal business, cash flow is usually critical enough that we should'nt get into financing. We usually end up doing more of that than we should anyway.
If you want to lend money, buy a bank.
Also many local bank will set up financing programs for you so that you can offer that service.
In actuality, we have offered financing through the ALCA program for about 5 years now, and have had only a handful of takers. I think it has been a good marketing tool, and got clients past the initial "can't afford it" stage. But when it came time to actually utilize the financing, most have just used a regular credit card. Many are saving airline miles etc.
Accepting credit cards is a must in today's economy. Lots of people use debit cards now, so that they don't have to use checks, and you need credit card capability to take those even.
03-16-2003, 10:17 AM
I do not offer any financing, but if a regular customer takes two or three monthes to pay for extra work, I will not charge a finance charge. I consider it a way to take care of they customer that they usually do not forget. It only happens to me 2 or 3 times during the year. I think that if it was a regular occurance, I would have to offer financing through a local bank so that I am not carring all theses late paying customers.
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