| This is a great system that is perfect for small | | | | 1 Get a copy of the customers I.D. |
| businesses. I have personally seen this program | | | | 2 Get a copy of their most recent pay check stub. |
| generate 25%-%40 increase in sales just by telling | | | | You can take this one step further and verify |
| people you offer "No Credit Check Financing". This | | | | employment. You can give the employer a call or you |
| article will show you step by step the way to set it up | | | | can send a fax to the Human Resources Department. |
| and many ideas dealing with advertising the plan. | | | | The easiest way is to call. They can not give you |
| LEGAL DISCLAIMER | | | | much information over the phone but, they can tell you |
| When implementing the concept discussed in this | | | | if the customer works there and if there is anything |
| article, Customized Concepts does not inherit the | | | | that might affect his future employment. |
| responsibility of the loans being paid back, of legal | | | | 3 Call the bank to verify the account is in good |
| issues, or of anything that results from the use of this | | | | standing. |
| information. | | | | 4 Verify the Checks. If you have a merchant account |
| The legal disclaimer is a must. We do offer a "90 Day | | | | that can process checks this can be simple. If you do |
| Financing Plan" that is guaranteed. We take care of | | | | not have check verification you can call your provider |
| the details and the risk. There is no risk to the | | | | and check pricing to get it set up. If you do not have |
| merchant. This article is based on the idea. You can | | | | check verification and you do not want to pay for the |
| put many things in place to insure the loans are paid | | | | service there are some other options. They are not as |
| back. This will be your responsibility. We will discuss | | | | reliable but will work. Physically go to the bank where |
| them and let you know the pros and cons. | | | | the check was issued and cash it. If there are not |
| You will need a good file management system. If you | | | | funds they will tell you or they will cash it and charge |
| are running a business this is not really a problem. I | | | | the customer an overdraft fee. DO NOT DO THIS |
| recommend that all the paper work is scanned into | | | | WITH THE POST DATED CHECKS. This should only |
| your system. This allows for quick retrieval if there are | | | | be done with checks that are not post dated. You and |
| any problems with the contract the customer signs. | | | | the customer came to an agreement that you would |
| Below is an example that does not charge the | | | | not cash the checks until the date on the checks. |
| customer finance charges.There is an example on our | | | | 5 Verify the customers check writing history. This can |
| website that has finance charges. This would qualify | | | | be done a couple different ways. Check out National |
| your program as "Same as Cash Financing". You are | | | | Check (NCN). You can also do a search on Google or |
| allowed to charge finance charges and application | | | | for "How to verify a customer check writing history". |
| fees. This would create another income stream for | | | | These systems can vary in cost and quality. We use |
| your company but, you can not advertise "Same as | | | | NCN. This option will let you know if they have |
| Cash Financing". | | | | bounced checks that are outstanding, a history of |
| The choice is up to you. | | | | writing bad check, or any check fraud in the past. |
| Example: | | | | These are the basics and if want to tweak it to fit |
| Yoshi walks in to your store and wants to buy your | | | | your company better, great. |
| product or service but does not have the money and | | | | We have a customizable contract on our website |
| has bad credit, no credit, or just does not want to take | | | | available for download. The form is a PDF. If you do |
| out a loan. The item costs $1000. Yoshi says that is | | | | not have a PDF editor you can go to and convert the |
| too much right now. You explain that you can offer | | | | file to a.DOC file. This contract is free of charge and |
| him a "No Credit Check Financing Option". He says | | | | we will not ask you to give us any information. This is |
| "Great". You and Yoshi agree on what payment | | | | a great tool that will save you some time. There is no |
| schedule will fit in his budget. He agrees that $200, | | | | need to design your own. This is the exact form we |
| every two weeks, would fit his budget. | | | | use. |
| Yoshi will then write you out five checks post dated | | | | We also offer "No Credit Check Financing" that takes |
| checks for the amount of $200 each. Five $200 | | | | away the risk and is very user friendly. We implement |
| checks equal the $1000 sale price. I know there is | | | | the procedures above and guarantee the payment to |
| someone saying is that legal. Yes. The law with post | | | | the merchant. If the customer defaults we will honor |
| dating checks is very vague. | | | | the payment and we will take action to recover the |
| The two major things that come in to play are: | | | | monies owed. The fees involved are normally less |
| 1. If the customer writes a post dated check that they | | | | than what it would cost you if you to set up check |
| know will not be good on the post dated date. This is a | | | | verification and verification of check writing history. It is |
| form of fraud. Customer is in the wrong. | | | | guaranteed to save you time. |
| 2. You cash the check before the post dated date. | | | | Advertising |
| When you and the customer agree on the payment | | | | Advertise the "No Credit Check Financing" |
| schedule you are agreeing to cash the check on the | | | | everywhere. Here are a few suggestions. |
| dates stated on the contract. You are in the wrong. | | | | Get a sign/banner that states you have the program. |
| They can sue you for the penalties incurred and | | | | We have a local company that will paint the lettering |
| numerous other things depending on your state. | | | | on. You can get your local sign maker to help you, also. |
| It is a good idea to keep the post dated checks within | | | | Window appliques, appliques for your car, magnets for |
| 90 days of the sale date. This is safer for you and the | | | | your car, the list goes on and on. |
| customer. | | | | Change the on-hold audio so it mentions "No Credit |
| The check will need to be kept safe (in a safe). This | | | | Check Financing" and also voicemail box recordings. |
| will make sure that they do not fall in to the wrong | | | | Be sure to mention the plan when you answer the |
| hands. | | | | phone. |
| Next you will need to get the filing system in order. | | | | Include the program on anything that your business |
| You will need a way to let you know when the | | | | uses for advertising. |
| checks need to be cashed. You can do this one of | | | | * Yellowbook Ads |
| two ways. | | | | * Business Cards |
| The first would be a basic folder arrangement. Create | | | | * Brochures |
| one folder for every week. Check the folders at the | | | | * Website |
| beginning of the week son you know what checks | | | | * T-Shirts |
| need to be cashed. | | | | * Vehicles |
| The second and probably preferred would be a basic | | | | * You need to get it visible to as many people as |
| program with Excel or some other spreadsheet | | | | possible. |
| program. This would require that you put the | | | | Do a local radio commercial that states you now offer |
| information in to your system, but would save the file | | | | "No Credit Check Financing" This is spectacular if you |
| set-up time. You will set up the spreadsheet to | | | | can afford the media. |
| organize the payments by date. Check the | | | | I hope everyone reading this did not find it a waste of |
| spreadsheet every day to see what checks need to | | | | time. If you can not use the information in this article |
| be cashed. | | | | please pass it on to someone who can. If you would |
| Here are a couple things to protect you from fraud | | | | like you can download an exact copy of this article |
| and default on repayment. | | | | and contract here. We will not ask for any information. |
| The options below are up to your discretion. You can | | | | I will be writing more articles in the near future. The |
| use one of them or all of them. The more you | | | | article will be on ways that small businesses can |
| implement the more protection you will have that the | | | | increase their sales with various techniques. Please |
| customer will not default on the loan. | | | | subscribe to my newsletter if you would like to be |
| This first three are, in my opinion, a must. | | | | emailed when they are posted. |