Finance for customers

[AllyBongo]

Im picking up quite a bit of work in boiler installs atm. Feel I could get a bit more if I offered finance options for customers, anyone involved in this side of things? Had a look at Hitatchi Capital, I know they finance for some of the larger companies I've contracted for.


Any advice appreciated guys

 

[IDCHAPPY]

I'd never ever touch it... ever.
Too much assing about 50% up front 50% on completion does me fine.

 

[AllyBongo]

I'd never ever touch it... ever.
Too much assing about 50% up front 50% on completion does me fine.

Whys that?

 

[IDCHAPPY]

Mainly personal preferance buddy, i don't go into macdonalds and ask if i can take credit on a big mac, i don't see why heating/boiler installs should be any different.
You have to pay for the materials, say within 30 days. so what if you fork out your 1K odds then after 3 months of £15 pm your debtor decides to take a credit break, without your consent.
Your having to fight to get your cash back whilst I've got my money, paid for the materials and put the profit in the bank.
This job can be hassle enough without adding that gash into the equation. Just my opinon though dude

 

[AllyBongo]

Isn't that why you use a finance company???

I think the way it works is, the finance company pay you the job total, charge a fee, then the customers payments go to them. Not as if I would be taking the monthly payments.

As for asking for credit in Mcd's, I can only take your word on that one! ;-)

 

[IDCHAPPY]

That's possibly the way it works, if it floats your boat and is 100% trouble free then go for it dude.
It just seems to be another way of complicating things in my mind

 

[smhstu]

You would need a consumer credit licence from the FCA to deal with any finance provider

 

[Deleted member 64964]

50% upfront and 50% on completion is my way too.

I am considering a card machine though.

 

[JWLPlumbing]

I think Finance is personally a good way to get more business.

As said, the Finance Co will stump up the cash then the agreement falls between them and the customer.

 

[julesverne]

This is who i use for finance. Dont use it much but there are other benefits aswell from using these. Cost is 10% commision on top of your quote. Less if you 3 or more a month. And 25 quid plus vat to use them. You also need an ipad to use there app to quote. You also get rebates through them from some manufacturers on top of anything you already get. Example £25.00 per boiler from ideal only aplies to logic plus and vogue. Paid into your account each month. Also you can use it for any home improvement.
the way they round the fca licenc is that you signa zero hours contract so in effect you becomenan agent of them.

Tradehelp - Giving choice to homes and Tradesmen

 

[julesverne]

They are also currently in negotiation with grahams ,Pts and plumb centre about setting up a trade buying network through them to get better prices.

 

[smtplumbing]

julesverne how do u find it many times have you used them

 

[julesverne]

Found it simple to use but dont use it that often as i havent really pushed the finance option because people keep wanting to pay upfront. but i keep it on because i get more than the monthly cost back in boiler rebates as its any boiler you install not just finance ones. Although now lad who works for me has passed his acs i plan to start doing more marketing for boiler installs and work.

 

[thorn]

Jules, you saying you get money back for each install regardless if it's on credit? Sounds like a good little setup! Was it much hassle to set up?

 

[julesverne]

I install ideal boilers every boiler install I send them a copy of the invoice and get 25 quid rebate for each one paid into my account. On a monthly basis. It's something they agreed with ideal other manufacturers do rebates through them but not as much.

 

[anz]

This is who i use for finance. Dont use it much but there are other benefits aswell from using these. Cost is 10% commision on top of your quote. Less if you 3 or more a month. And 25 quid plus vat to use them. You also need an ipad to use there app to quote. You also get rebates through them from some manufacturers on top of anything you already get. Example £25.00 per boiler from ideal only aplies to logic plus and vogue. Paid into your account each month. Also you can use it for any home improvement.
the way they round the fca licenc is that you signa zero hours contract so in effect you becomenan agent of them.

Tradehelp - Giving choice to homes and Tradesmen

Sounds ideal this.

So 10% is the cost to us. What's the cost to the customer? Or is it an interest free loan?

How long does it take to receive the money?

 

[julesverne]

Normally from sending in satisfaction note signed by custard on completion from you emailing it 10-14 days usuallybut in their terms upto 21days i think. Its hard to explain give em a bell if your interested