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Old 10-13-2011, 07:33 AM
shovelracer shovelracer is offline
LawnSite Silver Member
 
Join Date: Sep 2004
Location: North Jersey
Posts: 2,009
assuming you follow all the state laws on lending it can be profitable, but what if every client takes advantage of this. You need a cash flow to operate. Is it worth tying up 30k to make 3k, to me it is not. You can spend a fraction of that on marketing and make more. My initial thoughts are lets say you can make $500 over the loan. How much do you spend on a thorough credit check? $100, then you have additional office work over the loan, $100, you get the point. Now my other thought is people fear lets say "People's Credit Card Company" because they have power, money, and an entire office full of attorneys ready to pursue bad debts. Contract or not I would think that it is far more likely that the landscaper's credit account will not get paid in a time of financial hardship, and you may or may not have the means to pursue it. Assuming you do, how much is that going to cost. One bad debt ruins almost 2 years of this service. Not worth it to me. Look into 3rd party financing if you want to attract more work. You get paid and if they default it's not your problem.
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