Question Financing Options

[MikePatterson]

I wanted to get some feedback on offering financing for our clients. We have had more and more clients that want to finance Message Centers, Wraps, and larger projects. I currently tell them to go to their bank. We were wanting something we could have them apply at the time of the bid and not have to deal with a banker that doesn't understand the projects.

Who are you using for financing and how do they pay? Net 30/60/90 or 50% down/50% upon completion?

I rarely need pointers but after 27 years, I am having trouble finding the right lender.

 

[Christian @ 2CT Media]

Direct capital has a sign financing program you could look into. Typically if they are financing you get paid in full upon completion, but remember you now have the client and a financier that will go after you in case of problems or repairs. Make sure you have a strong buyer contract to avoid litigation.

 

[rjssigns]

Offering financing sounds like a lot of extra work and potential future complications. On the flip side it could enhance revenue. Gotta wonder what happens when someone buys ten wraps then "forgets" to pay.

 

[bannertime]

Direct capital has a sign financing program you could look into. Typically if they are financing you get paid in full upon completion, but remember you now have the client and a financier that will go after you in case of problems or repairs. Make sure you have a strong buyer contract to avoid litigation.

+1 for Direct Capital. We use them for all our equipment needs and on hand to finance for customers.

 

[MikePatterson]

Offering financing sounds like a lot of extra work and potential future complications. On the flip side it could enhance revenue. Gotta wonder what happens when someone buys ten wraps then "forgets" to pay.

I would think the extra paperwork would be minimal over our current contracts. I have missed a few jobs because of financing issues. On a plus side usually people spend more if financing. It would open the door to upsell the customer on larger sign or additional signage for their business. I am finishing up a $30,000 channel letter job that I could have sold them a package with wraps and job signs if we could have financed it. Now they are having to recover from the one sign and in a couple of months we will wrap the vans and trucks.

If they didnt pay their bill, I would suppose it would ding their credit. If we did the work we would expect to get paid.