Financing for Low Credit Score Customers
By accident I have discovered a great source for what I call
“Third Look Financing”.
After the bank says “NO”,
After the credit cards are tapped out,
After the “B” credit people say “NO”
60-70% of the time Paramount will say YES!
(I was really looking for a way to offer my clients payment plans for their website construction when I found them). I have analyzed Paramount Payment Systems, and this is my understanding and recommendation. Please note: This is my personal assessment and Paramount has in no way
obligated by my opinion. I think you should give this “Third Look Financing” program serious
consideration. Here’s why:
Paramount Payment Systems has some great financial connections. Here are a
a) They are associated with Omaha National Bank Financial FDIC
b) One of their founders is Linden Fellerman, past President of Equifax and Telecredit Service Corp. He helped develop many of the proprietary algorithms used today and created Check21 used in all the Wal-Mart stores.
c) Paramount has over 20 years’ experience and are nationally recognized as leading check services risk management experts.
d) Paramount enjoys customer retention over 75% which is higher than the industries standard
e) Paramount meets BBB standards, and has an A+ rating, the highest available.
Paramount Payment Systems offers:
“Third Chance” In-Store Financing at no cost to you with no recourse: Your company gets paid in full even if the customer defaults on the loan.
FACT : 60% OF THE AMERICAN PUBLIC HAVE NO CREDIT, BAD CREDIT, OR ARE SIMPLY MAXED OUT. DON’T LET THAT STOP YOU FROM MAKING A SALE.
Offering “second chance “financing to cash strapped customers is a great way to attract business and set you apart from and ahead of your competitors.
TURN THOSE LOST SALES INTO CASH IN YOUR BANK.
Paramount Payment Systems’ short term in-house customer financing programs are not like a conventional loan. They look at the customer’s ability to re-pay the loan, NOT WHAT THEIR CREDIT SCORE LOOKS LIKE. Right Now many consumers may have a poor credit score, but still have the ability to pay. They can approve 60-70% of your customers that would be turned down by traditional customer finance companies.
IN A NUT SHELL:
NO Credit Check on customers
Approval in 3 minutes
Your customers put 25% down then take 3 or 6 or 12 months to pay the balance
You get paid in full UP FRONT in 48 hours to 72 hours
Finance Fees paid by Customer by including the fees as an application fee paid by the consumer
Huge up selling opportunity
No recourse or risk to merchant, as long as you are truthful on the application.
No recourse is a great system but there are two rare potential problems I have uncovered:
1. If you make errors on the consumer application that makes it impossible for Paramount to go to collection. Paramount takes back unpaid funds.
2. If the consumer goes to their bank and claims identity fraud you must send your copy of the signed order and finance applications to the consumers bank or Paramount takes back the unpaid funds.
BUT PARAMOUNT PAYMENT SYSTEM’S EXPECTS YOU TO DO YOUR PART
1. Lease their Check scanner for 48 months for $79/mo
2. Limit your financing request (unlimited) to an amount agreed upon in advance of $1,500 to $5000 each (based on the Merchants) beginning and ending bank balance of their most recent bank statement so Paramount can be confident that the merchant has the funds on hand to finish the work they finance. There is no minimum loan amount.
3.Be truthful on the application. When you consider the advantages of In-House Customer Financing, allowing for your customers to split the purchase or service into small monthly payments, the extra sales, the extra profits, the customers you take away from competitors …. It’s a no brainer
IT’S A WIN…WIN …WIN for everyone involved
Win # 1… Your customers gets the service
Win # 2 You get the sales, with no risk to you
Win # 3 Paramount Payment System’s gets a great return on investment
THE NEED IS UNIVERSAL
We all know a neighbor or family member that has been affected by the recent financial downturn. We have all seen the banking industry tighten their belts on debt and offering credit. As business owners we have to change with the environment or get left behind. As credit has dried up, many customers who have not been able to utilize credit cards and are looking for alternatives like “No Credit Check In-House financing”. Now your customer can have the luxury of being able to make payments that fit their needs. Now you are able to get your money up front for the product or service rendered, while building your client base and growing your sales and your company.
Why the Merchant Benefits from Paramount’s Services
60% of all Americans have poor or no credit. Being able to service them would mean a large boost in sales.
Paramount makes your company able to target the 60% that cannot pay in cash or get credit elsewhere.
It increases the amount of customers coming in because they offer this style of “in house financing”
No recourse. Your company gets paid even if the customer defaults on the contract.
Why the Consumer Benefits from Paramount’s Services
They will enjoy a guaranteed acceptance as long as they have the 25% down payment in the bank
They will have 3/6/12 months to pay for it
No credit score required
They get vital needs met such as transportation, heating and cooling, plumbing, etc.
Why Your Customers Need this Service
No credit score required.
Customers nowadays look at the monthly payments more than the final cost (Rent-A-Center).
Customers can spread payments over a customizable period of time (3/6/12 months).
Comparable rates to that of credit cards.
What Benefit Do My Clients as the Merchant get from Paramount?
NO RECOURSE: your company gets paid in full even if the customer defaults on the loan.
Full payment in 48 to 72 hours
Your customer base increases, your sales increase.
Increase in scale ups because your customers can spend more.
Gives training and installs the software need to run.
Service equipment and software to get you back up and running quickly if needed.
A great advertising line to draw business.
I.e.: “Great credit? We will get you a low rate. Problem with credit? We can almost always help.”
Paramount Payment System’s wants to do business with companies in the fields of:
Carpeting / Flooring / Tile
Kitchen & Bath
Plumbing / Heat/AC / Electrical
Home exercise equipment
AUTOMOTIVE REPAIR / TIRES SALES
Transmission repair (higher transaction fee due to risk)
Anything associated with a new Car Dealer including their used car dealership
Bedding / Mattress purchase
Plus anything else to do with a homeowner
MEDICAL EMERGENCY SITUATION
Other Emergency Situations
Lawyers (except bankruptcy – credit card qualified only)
OTHER APPROVED MERCHANTS
Sporting Goods & associated products
Water Ski supplies
Snow Board / Ski supplies
Guns & Ammo
CREDIT CARD INDUSTRIES
Used Car dealers
OK … Want to Get Started ???
Items needed for approval:
1. Fill out the application
2. First page of most recent bank statement
3. Copy of a voided check
4. A completed application
5. Then a brief phone interview can help to determine if your business is eligible to offer our unique program.
HERE IS THE SYSTEM:
1. The Customer Check goes through our system
2. Merchant gets funded in 48 to 72 Hours
3. Then Customer Account Debited over a 3 or 6 or12 month term
No recourse to the Merchant
No customer application and customer approval takes 3 minutes
The consumer needs: a valid ID, a valid checking account and a form of income
No Credit score Needed. Check writing history is the key…do they bounce checks?
The merchant application process is free Paramount looks at your company’s ability to complete the contracts that it finances. Paramount looks at the beginning and ending balances of the company’s bank account to determine that ability Underwriting is usually complete in 36 hours.
One Point of Contact – Paramount Payment Systems
All merchant service, training, equipment shipping and set-up are handled through Paramount Payment Systems – “Protect Today – Grow Tomorrow” The Only Equipment You Will Need is Paramount’s.
CHECK IMAGER & TERMINAL EQUIPMENT OPTIONS
Purchase – $3150.00
Tax Deductible Lease Option
48 month – $99.00 – month – credit card cost + option
24 month – $150.00 – month – credit card cost + option
12 month – $199.00 – month – credit card cost + option
One Time Setup fee $195
Annual subscription fee $95
Online Back Office – $10/month (track sales)
Upon merchant approval the Equipment is Shipped.
Training & Equipment Set up is scheduled upon receipt.
Keep in mind the consumer is charged $2.95 per ACH check transaction as well as the $30 pre-authorization for orders requiring an estimate into the application fee. The merchant has the option to build the ACH Check charges
into consumers finance application fee at no extra cost to the merchant. The merchant can submit unlimited finance applications. Per financial deal, the merchants can request credit limits of $1000 to $5000 dollars correspondingly the merchant is charged $18 to $100 a month total (not by deal) by paramount only if there are no finance deals approved in a given month. As long as you are using the program as the merchant has requested this fee is reduced to zero. There is a $10 per month statement fee.
TRANSACTION EXAMPLE – For a Merchant with a $3,000 Limit
$2,000 Home Repair
New Total (Assumes Consumer Pays All Fees)
25% Due Today
1. Equipment shipped over-night upon application approval (4 to 5 business days after complete application and paperwork is received).
2. You will get a call to verify that you received the equipment (Until this verification nothing more can happen).
3. After verification your unique software is created & training is completed the software is ready in about 4 business days. This is a scheduled event with a technician. Someone at your location must be available to the phone for one hour to complete the download and training.
4. You need to have an Ethernet cable ready
Here is my bottom line analysis:
As I see it my job as your business advisor is to protect you from undue risk but also to help you maximize sales and profits.. That, my friend, is a balancing act. This is how I see it. Nothing is risk free. Your risk involved includes that Paramount can change plan with no notice… but you are locked in for 48 months to the equipment lease with a real fuzzy replacement and repair policy that favor “heavy” users. No surprise there; Financial institutions always protect themselves first. So the question is how many sales will it take to put you in the black to cover startup cost? I think very few. That is why I am recommending Paramount to my clients, because I think the risk of loss is low and the possibility for great gain is high.
At your service.. Mike Morosi
Proud to be a PHCC/QSC Industry Partner
And a Service Roundtable Consult Partner
Mike Morosi Pres, Contractor 20/20
For teaching videos and testimonial see the videos on this site.
607 770 8933 x80 for a free initial consultation
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P.S. After you have developed at great experience and high level of trustwith paramount I think you should consider these other Optional Bonus Programs.
CHECK GUARANTEE PROGRAM
Use the same check scanner that is used in the In-House Payment Program
You can accept checks up to $36,000 and we will guarantee them
Only $0.20 per check + 1.5% of the total check amount
Never have another bad check
Never chase a customer again for your money
Easy & Simple to Use
Use the same check scanner that is used in the In-House Payment Program. Scan the Check and deposit it as you would any other check.
If it bounces we’ll cover it in 48 Hours. If you don’t use it there is no fee. Because we monitor the check electronically we will usually know before you do that the check bounced and will ACH your account within 48 hours. The rest is our problem. No more collections or bad checks.
CREDIT CARD PROCESSING PROGRAM
GET PAID FOR ACCEPTING CREDIT CARDS FROM YOUR CUSTOMERS!
Plus…Your existing rates and fees are guaranteed to be matched or beaten.!!!
Plus … Use the same check scanner that is used in the In-House Payment Program for your terminal
Process Your Credit Cards through Paramount Payment Systems and Receive Cash Monthly!
THE PARAMOUNT BENEFIT
Are you tired of talking with credit card processing agents promising you the world and telling you that after you sign up with them you will save money monthly? With Paramount we give you a guaranteed amount that will be deposited into your bank monthly? And this amount is agreed upon before you signed up?
BUNDLE WITH PARAMOUNT AND RECEIVE THESE BENEFITS:
1. A guaranteed rebate amount monthly to be deposited into your bank.
2. Your existing rates and fees are guaranteed to be matched or beaten.
3. Offset financing program costs
4. You will only need deal with one company for your multiple services.
5. Your processing and financing programs can be in one terminal.