[Hidden-tech] How do I offer customer financing?

[Jonathon Podolsky]

Hi Rich,

Thanks for the reply.  So far the companies I have found through  
online searches charge a huge percentage of interest for factoring.   
Sometimes over 4% per month.  So it works for companies that have net  
30 terms for their customers but need the cash immediately.  However,  
in my case the wait could be 12 months, so that's over 50% interest  
after figuring in the compounding.

I imagine a large percentage of people on this list have to charge  
customers for long-term projects.  Have others found ways to make the  
payment schedule work for them / ways to encourage customers to pay  
early?

I also wanted to mention to everyone that "google checkout" seems  
like a nice service.  You can put on your website or email invoices  
and there are no credit card transaction charges for the rest of the  
year.

All the best,

Jonathon Podolsky
Producer at WholeHealthExpo.com
Voice: 413.584.0010
Toll-Free: 877.WHE.EXPO
Toll-Free: 877.943.3976
Fax: 413.586.5846
Click here for Whole Health Expo website including information about  
our events and applications

On Jun 20, 2007, at 10:31 AM, Rich wrote:

>   ** The author of this post was a Good Dobee.
>   ** You too can help the group
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>
>
> I've been following this and have a point to add: Make they pay for  
> the privilege.
>
> I'd make it very clear that this is an added and expensive service  
> you are providing
> and so build the expectation they have to pay for it, and use that  
> to cover any added expense for
> the financing -- since few companies charge extra today for  
> financing (or even make a deal
> about it being free), people don't realize the cost.  That might  
> work for gas stations
> or Ford or GM (which lost how much last year ??) - but for a small  
> company with typical
> margins - an extra 15-25% overhead can be fatal -- and that is what  
> I recall factoring
> your receivables costs -- that is what you need to google BTW  
> "receivables factoring",
> it is the norm in many industrial markets with long delivery times.
>
> Rich
>
> Jonathon Podolsky wrote:
>> We are scheduling shows farther in advance, and are offering a  
>> larger number of shows in our event series, we find that fewer  
>> customers are willing to pay in full at the time of signup even  
>> though I give a discount for up front payment.  Instead they are  
>> option for putting down the 50% minimum deposit.
>>
>> Does anyone know of financing companies that offer financing to  
>> consumers who are buying a service?  There would be an application  
>> that I provide the customers, but the financing company processes  
>> it and provides the money if approved.  I am having trouble  
>> finding this on google -- I have only been able to find companies  
>> that offer this for retailers.
>>
>> Also, does anyone know of credit card applications that could be  
>> integrated into my website, so customers could apply for new cards  
>> and use the card right away on my website?
>> All the best,
>>  *Jonathon Podolsky*
>> Producer at WholeHealthExpo.com <mailto:Producer at WholeHealthExpo.com>
>> Voice: 413.584.0010
>> Toll-Free: 877.WHE.EXPO
>> Toll-Free: 877.943.3976
>> Fax: 413.586.5846
>> Click here <http://www.wholehealthexpo.com/information.php? 
>> infoid=6> for Whole Health Expo website including information  
>> about our events and applications
>>
>> --------------------------------------------------------------------- 
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> -- 
> Rich Roth CEO TnR Global formally know as On-the-Net
> Building the really big sites  http://www.tnrglobal.com - Blog:  
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