financing lawncare for customers

Discussion in 'Lawn Mowing' started by xtremelawn, Feb 5, 2008.

  1. xtremelawn

    xtremelawn LawnSite Member
    from USA
    Messages: 110

    I offer a year round package to my customers "Mowing,Fertilization And Weed Control". Most packages range between 1800 - 2400 Per year. I had a customer ask if we offer financing. I know that customers can finance irrigation but can they finance lawn care? If so what company's do this.

  2. grasshopperslawn

    grasshopperslawn LawnSite Senior Member
    Messages: 293

  3. kc2006

    kc2006 LawnSite Silver Member
    Messages: 2,443

    Financing=basicly monthly invoices. So instead of charging the customer a package you'd be doing like the other 95% or more of contractors out there and sending a monthly invoice.
  4. Woody82986

    Woody82986 LawnSite Silver Member
    from DFW, TX
    Messages: 2,128

    I agree... Financing basically means sending a monthly invoice rather than having a lump sum payment package... I think. Is that what you mean?

    HOOLIE LawnSite Gold Member
    Messages: 3,981

    You can actually get real financing thru your bank for large ticket items (for my bank this means $1500+). The banks pays you the lump sum and your customer pays the bank in installments.

    Otherwise, YOU are the bank. But what you describe sounds like normal maintenance...I would think most of your customers pay a monthly fee and not all at once anyway.
  6. topsites

    topsites LawnSite Fanatic
    Messages: 21,653

    I think financing is the polite way of saying "we don't have that kind of money," that could be what the customer meant by that.
  7. xtremelawn

    xtremelawn LawnSite Member
    from USA
    Messages: 110

    I think I might have confused some people with my post.
    I already invoice my customers monthly. Year round customers get 12 equal monthly invoices. I do the work and then you hope i hope i get paid. I was referring to an outside finance company. That way I would get my money up front and the customer could pay the finance company. That way I always get paid.

    Sorry if I confused anyone
  8. topsites

    topsites LawnSite Fanatic
    Messages: 21,653

    Ok now I understand but I believe with finance companies that would not work for the reasons you mention. I am really not sure when the finance company pays up but I do know the notion that the owner gets paid as soon as the loan goes through is a general assumption (and thus quite possibly folklore). Unless you get this straight from the horse's mouth it is just as possible owners only get paid after or as the loan is satisfied, because I honestly don't know.

    What you speak of would likely be more along the lines of third party billing?
    But you'd want someone with some backbone, someone who also enforces collections when they don't pay, right because just to send a bill that much I am sure you can handle lol
  9. DavidR

    DavidR LawnSite Member
    Messages: 180

    Why would your customer (or you want to do this)?

    As Hollie explained, it can be done through some banks. It is called asset backed lending. Essentially you sell your receivables to the bank and they collect for you. They (the bank) would not give you full payment up front. They will pay you as you submit invoices for services provided. Also (of course) the bank will take a percentage to provide this service to you. Good thing is that the burden of collection is passed on to the bank. Doctors offices typically utilize this sort of arrangement since their payments come in from insurance companies which are pretty much guaranteed.

    I'm having trouble seeing what the advantage would be to you though? Are you having trouble collecting? Also, what would be the advantage to the customer? I'm confused as to why they would be asking for this kind of setup?
  10. DLAWNS

    DLAWNS LawnSite Fanatic
    Messages: 5,780

    I wouldn't do would be one thing for a big landscape job that costs thousands of dollars but I wouldn't do it for lawn care. Just my opinion.

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