Subscriber Discussion

Integrators, Do You Offer Payment Plans?

U
Undisclosed #1
Sep 15, 2015
IPVMU Certified

Not meaning 2/10 net 30, but something like a $5,000 system paid off $100 a month?

Do you charge interest?

JH
John Honovich
Sep 15, 2015
IPVM
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U
Undisclosed #1
Sep 15, 2015
IPVMU Certified

Can you offer a payment plan without it being a lease?

If there is no interest charged?

JH
John Honovich
Sep 16, 2015
IPVM

You could but then you, as the integrator, become a bank basically. I do not think most integrators have the resources or the temperment to extend credit and assume that risk.

U
Undisclosed #1
Sep 16, 2015
IPVMU Certified

If you can get most your cost as a down payment, you can eliminate some risk. Then there is the added bonus of getting them in a RMR frame of mind.

I'm asking because I know someone who would never have thought to offer a payment plan, but ended up with a deadbeat, and instead of taking the cameras back worked out a payment plan.

Last thing I heard was the guy wanted a PTZ, and the integrator was going to add it to the 'back-end' of the deal and let him pay it off. When I said what about interest, he said he charges extra to 'compensate' because he didn't want to have to do any 'truth-in-lending' crap.

Its like a lease except the customer owns the stuff and the interest is hidden. My gut tells me something is wrong with such an arrangement, but I'm not sure exactly what...

MM
Michael Miller
Sep 16, 2015

Basicly your spreeding your profit over a couple of months or years if you do the payment plan. Plus what happens if the customer stops paying and then you have to layout more money/time to get your money. If you want to go down this road the best option is to partner with a leasing company which will get you paid in whole after the job is completed while letting the customer pay over time.

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Mark Jones
Sep 15, 2015

Uh, no.

As a matter of fact, if you are a first time customer and the quote is over 20K, we require 1/3 down.

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