Low Credit Customer Financing for Plumbing, HVAC and Electrical Companies
One of the worst ways to lose a job is when a customer simply cannot get the financing needed to pay for the work or equipment. Sixty percent of the American public is maxed out, has bad credit, or no credit at all. When a customer says “no” to a job because of financing, all the advertising dollars and time spent landing the customer fall to the wayside. At Contractor 20/20, we have your solution. Originally we set out looking for financing for our own customers who were building new websites, but when we found the solution we realized that this could actually be a great tool to help our customers save jobs lost due to financing.
Paramount Payment Systems is a “third look financing” program that approves 60-70% of the time. We have looked into Paramount Payment Systems and below is our understanding and recommendations regarding their system. It is important to note that this is our personal assessment and Paramount has in no way influenced our opinion.
Paramount Payment Systems has some great financial connections and ratings. Here are a few:
- They are associated with Omaha National Bank Financial FDIC
- One of their founders is Linden Fellemen, past President of Equifax and Telecredit Service Corp. He helped develop many of the proprietary algorithms used today and created Check 21 used in all Wal-Mart stores.
- Paramount Payment Systems have over 20 years of experience and are nationally recognized as leading check services risk management experts.
- Paramount enjoys customer retention over 75% which is higher than the industry standard.
- Paramount meets BBB standards and has an A+ rating, the highest available.
How does it work?
- Paramount looks at the customer’s ability to repay the loan—not their credit score.
- No credit check on customers
- Approval in 3 minutes
- Your customer puts 25% down then takes 3 to 12 months to pay the balance.
- There is no application. The customer needs a valid ID, a valid checking account, and a form of income. No credit score is needed. Check writing history is the key…do they bounce checks. Customer approval takes 3 minutes.
- You get paid in FULL up front in 48-72 hours.
- The finance fees are paid by the customer by including the fees as an application fee.
- No recourse or risk to merchant as long as you are truthful on the application.
Two potential problems with the “no recourse” system:
- If you make errors on the consumer application that make it impossible for Paramount to go to collections. Paramount takes back unpaid funds.
- 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.
- Lease their check scanner for 48 months for $79/month.
- Your unlimited financing requests need to be monetarily limited to an amount agreed upon in advance of $1,500 to $5,000 each. This amount is based on the merchant’s beginning and ending bank balance of their most recent bank statement. Paramount requests this so they can be confident that the merchant has the funds on hand to finish the work they finance. There is no minimum loan amount.
- Be truthful on the application.
Interested in learning more?
We think this third look financing program could be helpful to our clients and their customers. If you are interested in the latest information about this offer give us a call.