Do you offer finance?

[island fling]

Evening all,

I am wondering if any of you do finance options for boiler/heating installs?

I am looking into offering finance for boiler/heating installs, maybe bathrooms in time. Is this something any of you have done? Any suggestions?

This is my thoughts on pros & cons.
Pros - Extra income, increase work load/income, offering a service nobody else does on the island, paid right away from finance company.

Cons - Extra paperwork, financial conduct authority, what happens if people fail to pay?

It is just a thought for now but willing to hear any good or bad experiences.

I have a card machine & for customers with a credit card it has helped them a lot. We have quoted for 6 new boilers in the past 2 days, out of 6 there has been 2 that have asked if we do finance or card payment to use a credit card to help spread the costs....This is what got me thinking.

I have mentioned to a couple of good customers today that it is something I will be looking into & it has had a great response.

Thanks.

Edit - put this in here as I couldn’t see where to start a new thread other than in new members.

 

[Harvest Fields]

Nope

 

[rpm]

Out of interest, which card reader & what are the costs nowadays for card payments ie 1.5% or .........?

 

[SimonG]

Might be something in the search. Remember this being discussed at some length a while ago.

 

[island fling]

Out of interest, which card reader & what are the costs nowadays for card payments ie 1.5% or ...?

I’ve got a paypal one. Really i got it because I had a few sticky payers, all using poor excuse ie havent got money till the end of the month but have a credit card but costs too much, forgot to put the check in the post, thought the wife was paying it ect.
There isn’t a monthly fee, just a 2.7% (I think) charge that I add to the customer. Helped me to get money in as I went to the door & asked for payment, nobody can deny having a credit/debit card when they are at home.
Drawback is the 60 days you wait to be paid from PayPal, sometimes it’s faster but it was better than the months I waited for some customers.

 

[island fling]

Might be something in the search. Remember this being discussed at some length a while ago.

Did have a wee look, think it might have been in Arms but I couldn’t view it.
If there is another then admin can feel free to shut this down, I can search again. Thanks.

 

[SimonG]

60 days, ouch.

 

[rpm]

Ah, you haven`t had the "My ex pays all the bills on the house, I`ll send the bill to him" story. 🙂

 

[rpm]

Hope that isn`t linked to your main account or even your business account then.

 

[island fling]

60 days, ouch.

TBH mate with island life we regularly have to wait a couple of months, hellish really how folk don’t care. All of us are in the same boat up here though & it’s just seen as normal self employed life. It’s actually the expensive jobs that get paid soonest, small jobs under a grand can take ages especially if it’s emergencies as people plead poverty as they didn’t expect to have to do the job.....

 

[island fling]

Ah, you haven`t had the "My ex pays all the bills on the house, I`ll send the bill to him" story. 🙂

Only a couple of times. One when the wife paid her half but the husband refused to pay because she was living in the house till it sold. Was only a £120 job too!

 

[townfanjon]

My customers are so effluent they dont need loans

 

[island fling]

Hope that isn`t linked to your main account or even your business account then.

For what reason? My PayPal is linked to my business account, my invoicing system supports card payment & I notes the interest cost & my accountant deals with it from there, weather it’s a business expens or what I’m not sure.

 

[island fling]

My customers are so effluent they dont need loans

I always thought they were the worst payers!

 

[townfanjon]

I always thought they were the worst payers!

I wont deal with anybody that doesnt pay ,
Read comment again lol

 

[rpm]

For what reason? My PayPal is linked to my business account, my invoicing system supports card payment & I notes the interest cost & my accountant deals with it from there, weather it’s a business expens or what I’m not sure.

EU bank, heard horror stories about them freezing accounts until a problem is settled.

 

[island fling]

EU bank, heard horror stories about them freezing accounts until a problem is settled.

So if there is an issue with work ect? If the customer disputes it do you mean? Then there is a risk of them freezing my accounts?

 

[rpm]

So if there is an issue with work ect? If the customer disputes it do you mean? Then there is a risk of them freezing my accounts?

Think it is more along the lines of them seeing something they don`t like going on with your account. TBH the info came from the fleabay forum where it was going on a lot as paypal & fleabay are interlinked. Maybe take a look at the forum for yourself but wouldn`t want my account linked to a company operating under EU laws, yes I know they all do to an extent but at least I can talk to my bank 😉

 

[island fling]

Th

Think it is more along the lines of them seeing something they don`t like going on with your account. TBH the info came from the fleabay forum where it was going on a lot as paypal & fleabay are interlinked. Maybe take a look at the forum for yourself but wouldn`t want my account linked to a company operating under EU laws, yes I know they all do to an extent but at least I can talk to my bank 😉

Appreciated, I will look into it. I have used it for 6 years now & no hassle but will have a look.
Im fortunate like that too, my bank manager lives 2 doors down from me & she calls if he has any issues or questions.

 

[WC1]

Have izettle card machine . Use it a lot. You are vulnerable to chargeback tho. But i never had a chargeback yet but they generally rule in favour of the cust. Afaik.

 

[Pickwickpick]

Have izettle card machine . Use it a lot. You are vulnerable to chargeback tho. But i never had a chargeback yet but they generally rule in favour of the cust. Afaik.

Yeh chargeback is the issue some sellers have with paypal on ebay, by default they seem to side with the customer and fraudsters have cottoned on to it, they buy stuff claim in never arrived and the seller gets stuffed. In our trade it should be a much lower risk of such things happening but it is worth baring in mind.

 

[WC1]

Correcr, pw. PayPal/ ebay the worst for this. That's why I avoid them.

 

[Pickwickpick]

Yep ebay are basically complicit in it, they'd rather screw over sellers and attract more buyers with the 'no risk' guarantee and not have to spend any more having a team that properly investigates this things.

 

[island fling]

I will bear the charge back in mind.
A lot of my reason for wanting to start offering finance is that you get paid on the day, can offer 0% interest & good good money as it will attract more customers in on boiler install jobs, its also one of the jobs I personally enjoy doing. I though a few on here might offer it as I know a few lads in Inverness areas that I went to college with do offer it & claim better turnover & profits as a result.

 

[Chuck]

I am looking into offering finance for boiler/heating installs, maybe bathrooms in time. Is this something any of you have done? Any suggestions?

Some relevant discussion here:

offering finance to customers (small business)

but talk to your accountant before doing anything because there are a lot a regulations and pitfalls. One of which is that you'll attract customers who can't afford what you're selling and hence are a high default risk.

As far as tardy payers are concerned, one method that can work quite well is to offer a 5% discount for prompt payment. Obviously, you need to have sufficient business to be able to increase your quotes a bit in order to cover the discount, but chasing late payments isn't free if you value your own time.