Replies

1. 
   blue_eyed_devil_ | Feb 28, 2001 09:20pm | #1

   *
   Doug, didn't your banker offer you a program to help finance your customers? Or maybe you didn't seem interested enough and didn't ask for further details?

   Your banker would be the one to give you the details.

   If the bank has a program, you will be able to earn extra money for filling out the applications. Your fees are dependant upon the rate of interest that you push. Higher interest rates get you higher fees.

   I can't remember, but I think a salesman could earn several hundred dollars on a relatively small loan at higher interest rates.

   blue

1. 
   doug_hubbard | Feb 28, 2001 09:39pm | #2

   *Hi Blue. Thanks for the response.I innitiated the question and my banker jumped at it and said they definitely have a program for home improvements. I have never been down that road and wondered how it works. Is it like a construction loan for a new home?IE- inspections and draws. Does the homeowner get a loan on the strength of their credit and pay me based on deposit/ balance due on completion?Does the bank pay me something for generating business? Do I place a value on the financing and charge a percentage?What if the money for a loan is granted and the customer spends it elsewhere- and can't pay?just fishing for some wisdom from ya'll

1. 
   blue_eyed_devil_ | Feb 28, 2001 09:53pm | #3

   *Doug, the program that our company (I was selling for a friend) had was basically a middleman program. We'd offer the financing, and if they wanted to use it, we'd fill out the application. The bank would handle it from there.We'd get a fee paid to us from the bank. It was an incentive to use that particular banks finance dept. We were not directly involved after the initial application (that I can remember). I'm sketchy on the details because I never sold a job that used the finacing package. The bank did come out to our office and put on a "seminar" on how to use their forms. If you can fill in the blanks, you will do fine.Go back and have your banker fill you in. They are usually happy to have you out there selling their services, if you are reputable. blue

1. 
   doug_hubbard | Feb 28, 2001 10:10pm | #4

   *Blue-reputable- oh bother... another opportunity out da window...I laugh at me-thanks again for your advice.back to a former post- I think Izzy is a hell of a coach too. Can't help but like the guy.O'Brien has been manna from heaven for us basketbucks...hope you feel better soon

1. 
   blue_eyed_devil_ | Feb 28, 2001 10:19pm | #5

   *The best thing that I like about Izzo is that he passed up millions and stayed at MSU. His obvious dedication is a testament to his credit.Of course, it's easy to turn down millions when you already are getting millions.Doug, I'm sure you'll like the ability to offer financing if you are selling a product that might require it. If nothing else, it implies that you are one of a few contractors that are professional enough to be a "full service" remodeler. Probably more small time remodelers should look into this free product.blue

2. 
   B_Novick | Mar 01, 2001 05:21am | #6

   *Doug,keep in mind, many home improvement loans do not pay ANYTHING until the jobs are complete. Customer must sign off as to complete satisfaction. You will need to finance the jobs yourself until the loans are funded by the bank. Talk to the bank about setting up a line of credit you can use just for your financed jobs. When the jobs are complete, they can "pay off" your line, then give you the remaining monies due.If the loans you offer are home equity loans, forget everything I just said.Barry

3. 
   FredB | Mar 01, 2001 08:36pm | #7

   *Are you a banker? Do you know all about how to evaluate credit risk? Do you understand the legal liabilities and relative responsibilities of you as the lender and your customer as the borrower? Are you willing to go through the bad debt, foreclosure and collection procedure in the event the deal goes sour? If the deal does go sour do you have the resources to take the lick and keep on ticking?Unless All the answers to these and many more questions are Yes you must not a lender be.The Only way it works for most folks is for you to get a Finders Fee for steering the customer to the bank. Then all financing is between the Customer and the Bank. Your only involvement is to get paid for what you do. Your only responsibility is to do what you said you would do in the contract when you said you would do it.

2. 
   doug_hubbard | Mar 01, 2001 08:37pm | #8

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   Talking with my banker today and he indicated a belief that I could include financing as a perk in my advertising.

   Seems like it might expand the pond I'm fishing in.

   What should I look for- ie terms and agreements from/ thru the bank...