Does anyone offer financing for larger projects?

Discussion in 'Hardscaping' started by MJK, Jan 7, 2013.

  1. DVS Hardscaper

    DVS Hardscaper LawnSite Fanatic
    Posts: 6,403

    I would never offer in house financing for something I cant come and pick up if they breach the agreement.

    Lien on their house?? What if:
    A) their house is worth less than the mortgage?
    B) what if they never move? My mother has been in the same house for 39 years and counting. That's a long time to wait if you put a lien in it!

    I have an agreement with my bank - They won't install patios if I don't loan out money. But the Italian mafia does.

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    Last edited: Jan 8, 2013
  2. alldayrj

    alldayrj LawnSite Gold Member
    Posts: 3,750

  3. ToddH

    ToddH LawnSite Silver Member
    Posts: 2,197

    True

    I heard at one time Sears made more money on their charge card than they did on the merchandise.

    However, I know few stores that offer their own charge cards these days. Dillard's might. Many of them use GE.

    I actually use credit on most of my projects for materials if my cash is below a threshold to cover overhead and payroll. Many projects have some form of interest on money in the bid. This is true when I consider buying materials, doing the work then billing 30 days net. Many of my commercial clients pay in 30 to 35 days consistently.
     
  4. jbailey52

    jbailey52 LawnSite Bronze Member
    Posts: 1,059

    Hey I believe DVS is a huge fan of credit and paying interest.... Right???
     
  5. DVS Hardscaper

    DVS Hardscaper LawnSite Fanatic
    Posts: 6,403

    LOL - credit and interest are fine.

    It's being over extended and working solely to pay the banks that I'm not a fan of :)
     
  6. blakescape

    blakescape LawnSite Member
    Posts: 108

  7. GreenI.A.

    GreenI.A. LawnSite Silver Member
    Posts: 2,132

    That is true, throughout the 80's and early 90's, the sears stores actually lost money being open. Where they turned there profit was from the finance charges on the items being purchased. That is why Sears cards used to be one of the easiest cards to get, and often the first cards people would qualify for. During that time, it was known that if every card holding began paying off their accounts so that they would not have monthy finance charges, sears would actually have to close their doors and file bankruptcy. This is a very common case study in many finance and accounting texts.


    We have a number of people who ask us about financing. Many people seetle on using a no/low interest card or one with great rewards. We have also partnered with a credit union who we stear clients to for financing their projects. In return we get a small percentage of the APR. Not to many people have gone this route, it would be nice if more did, the bank puts the money in our account on time, and the quarterly checks from the APR are nice too.
     
  8. DVS Hardscaper

    DVS Hardscaper LawnSite Fanatic
    Posts: 6,403

    A good example of successful in-house financing is the 'Buy Here Pay Here' car dealerships.

    I have a customer here in MD who is on the upper end income level. He is a top level exec for a international engineering and construction company. A company we've all heard of. Well - they are partners in a Burger King franchise in Kentucky with her brother in law.

    They had been telling me about the Burger King venture and all that jazz, but one day she told me that her brother in law became very very wealthy from owning a 'Buy Here Pay Here' car dealership, which in turn enabled him to invest in Burger King franchises and the real estate.

    But see - there is low risk in financing cars. Most Buy Here Pay Here dealers have devices on the vehicles. Where if you miss a payment - they can make the starter inoperable and I think they can also track the location of the vehicle.
     
  9. alf500series

    alf500series LawnSite Senior Member
    Posts: 257

    i can offer financing through my local arvest bank. they finance the project thru them and they cut me a check once they are approved. im basically just a head hunter for them. they offer 2.99% for anything over $5000 and less than that is around 13%.
     
  10. Stillwater

    Stillwater LawnSite Platinum Member
    Posts: 4,800

    Secure funds then call me...
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