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Does anyone offer financing to their clients?

Will Fowler

LawnSite Member
Location
Hillsborough NC
Wondering if anyone on here who does large scale landscape and hardscaping work offer 3rd party financing to their clients? We are getting into some 20-30k plus jobs and every now and then a customer asks if I offer financing. When I tell them we don’t or that we only offer credit card payments, and they never call back, I’m assuming I’m loosing the work to someone who does offer financing. Obviously I would never risk offering in house financing, but would be open to using a 3rd party financing company to help get my customers quick and easy loans for their projects. The problem is a lot of these companies I’m looking at online seem to be geared toward online sale based businesses, and a lot of them have minuimum monthly sales to meet requirements and stuff like that. Obviously not every customer needs financing so that wouldn’t be a good opinion, but would be a nice thing to offer on my website as I feel it could help bring in business If correctly advertised. It also seems some financing companies charge you monthly fees (around $40-50 per month?) , which seems like BS to me considering I would be the one making the sale and getting them business, and they would be making the interest.

So does anyone work with a 3rd party finance company that they are happy with, and does the benefit outweigh the extra headache?
Thanks
 

hal

LawnSite Fanatic
Location
Georgia
As long as you get paid upfront for the job is what is important. Just add the fees into the overall price. It also depends if the finance company has some warranty/guarantee attached, could be a head ache if the customer backs out.
 

hal

LawnSite Fanatic
Location
Georgia
No, we don't use financing, 1/2 down 1/2 when finished type thing.
 

DVS Hardscaper

LawnSite Fanatic
Location
County Jail
I looked into it twice.

They want you to bake the finance costs into the job. That's not my style.

And you have to wait for your money. That's not my style.
 

rclawn

LawnSite Bronze Member
Location
Kansas City
If they want financing they can find it on their own or use a credit card is my rule!
 
OP
W

Will Fowler

LawnSite Member
Location
Hillsborough NC
Anyone that can’t pay outright for a completely unnecessary landscaping job shouldn’t be doing it but that’s none of my concern.
I completely agree with you, definitely amazing what people are willing to finance. None the less, if people want to make poor financial decisions that increase my sales, I’m all for it lol
 

Crazy 4 grass

LawnSite Fanatic
Refusing to offer financing is short sighted if you ask me. Offering a financing option only has the potential to increase sales not decrease them. Also the customer is the one financing it over time, the contractor still gets paid in full right away. As a matter of fact, its almost an even better assurance of getting paid in full as the contractor is getting paid by the lending company not the customer.

As I stated earlier, the contractor writes the quote exactly the same as always, this is the price if the client pays in cash. Then tack 10 percent on and thats the if they finance price. The contractor gets paid the same amount either way. Actually the contractor gets paid slightly more if they finance, due to the 3rd party lender only absorbing a portion of the financing upcharge.

If the client wants to do a huge job but can't or won't pay cash for it, why would you want to limit your abilities to get the work?
 
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