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Financing For Your Sub-Prime Home Improvement Customers

Date Added: August 12, 2010 12:30:49 AM

If you are are a General Contractor, Licensed Residential Builder or Handy-Man working in the home-improvement industry, you are probably well aware of the fact that not all people who would like for you to do work for them are A credit customers with credit scores of 700 or above. If you are like most builders, you have probably wondered if you have missed out on possible jobs because you could not offer consumer receivable financing (consumer contract financing) to your prospective customers.

The chances are we may be able to position you to offer consumer contract financing, or what is otherwise referred to as retail installment contract financing not only to your credit worthy prospective customers, but also to your prospective customers with sub-prime credit.

After application and approval you will be able to offer financing to prospective customers with credit scores as low as 640 or even 615 to 630 in some cases. This can significantly increase your sales volume and in turn your profitability.

After you have a signed consumer contract, and have completed your work to the customer's satisfaction, you can cash out your contract for immediate capital. This will save you from having to get paid slowly, month by month, over a period of one to four years. In this way, by enhancing your cash flow position, you will be able to service the needs of many more customers, while at the same time receiving payments for your completed work usually within 48 hours or less.

Here is how it all works. The consumer contracts (consumer notes) are purchased at a discount . There is also a refundable reserve which is set aside as a kind of hold-back to mitigate against the possibility of defaults. The advance, which you as a builder doing a home improvement job would receive, would vary depending upon the terms of the contract and the risk involved from a financing standpoint.

The terms available would range from six to twelve months, up to four years (and in some instances even five years). The maximum amount available for any one consumer contract would be about $15,000 of financing.

Financing for retail installment contracts (consumer receivable financing) provides an alternative for people such as yourself in the home-improvement industry. Instead of having to walk away from a motivated customer who can not procure financing from a traditional financing source such as a bank, you have the opportunity to position yourself to offer financing terms to prospective customers with less than perfect credit.

To find out more about how consumer contract financing can help you and your customer, contact Access Funding Center, Inc. for more information.








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