FINANCIAL FREEDOM: Giving Credit Where It's Due

Tom Canete had his eureka moment in front of the TV.
 
“I’d see electronics and furniture advertised that offered financing and say, ‘There has to be a way that I can do that,’” says Canete, owner and president of Canete Landscaping and Garden Center, headquartered in Wayne, N.J. “If people are willing to finance a couch or a television, there has to be a way for people to finance landscaping. Landscaping is a capital improvement. It isn’t going to walk away like a TV could.”

After growing his lawn care and landscaping business to include landscape design, snow removal and a 3000-foot garden center with four acres of plantings, Canete saw he could do more. He wanted to reach new clients and realized offering financial flexibility was a key to helping homeowners build their landscaping visions.

Serving Northern N.J., Canete Landscaping (www.canete.com) is one of the only landscapers in its area that offers on-site financing – no bank required. Since offering financing directly to his clients last year, Canete says his top-line numbers are up around 20 percent.

However, the process of becoming eligible to finance is no easy feat. First, you need to have a retail site. In 2002, Canete opened a retail garden store in Wayne. Then he had to apply for a New Jersey banking license, a process that took more than 10 months to complete (Canete received his banking license in 2007).

After exploring different financing companies, Canete decided to go with GE Money, which has nearly 20 years of experience in the home improvement industry and over $14 billion in home improvement loans originated. Canete couldn’t be happier with his choice.

“Financing works well with the economy,” Canete explains. “You might know you have a Christmas bonus or tax return coming, but you want to get your landscaping done now.”

“Most contractors specializing in remodeling, siding, windows, sunrooms and pools have used consumer credit programs as a way to energize their business,” says Bruce Christensen, vice president and general manager of GE Money’s home improvement division. “Now, landscaping providers recognize that consumers are a lot more sophisticated about credit, and that financing can be a valuable option.”

Canete finds that offering financing lets clients create the outside space they envision, without being limited by cash on hand. “For example, we did a job in June and the customer only had a budget of $15,000,” Canete says. “But when they learned about financing, by the time we were done, their invoice was $33,000.”

With on-site financing, there is no reason a client has to wait. Canete’s salesmen complete credit forms on site and phone the application in to get quick approval. The terms are zero percent down, with zero percent interest for 12 months.

Christensen says, “Financing is being used by savvy landscapers for projects of every size. As most contractors know, there is a point in the sales process when the customer and contractor must discuss cost and payment options. That is the critical moment when many jobs are either lost or scaled down. Properly presented financing options divide the project into affordable payments and enable the customer to dream bigger.

“In this current environment, we see a focus on improving versus moving, with many homeowners expanding or enhancing their outdoor living space. People recognize the value of curb appeal, as well as adding decks and hardscapes like walkways, patios, firepits and retaining walls. Some may also add features such as decks, pergolas, outdoor kitchens, play areas, fencing and lighting.”

Offering financing options also means money in the pocket. Canete explains, “The day you start, you get a third of the cost from GE. You don’t get paid in full until the project is completed. The rest of the money gets paid after the consumer signs off that the job has been completed.”

Having collections move from the landscaper to GE Money also freed up time for Canete’s team, which can learn from GE Money’s online tutorials, sales training and marketing materials.

“We work with our partners to support them in giving the customer an exceptional experience – from design and project outline to billing and customer service,” Christensen says. “We’ve been busy, and I have to give financing some of the credit. Also, I hired two very good salesmen.”

Not every kid who started mowing lawns in 1977 had the vision and dedication to grow into a huge landscaping business. But getting a banking license? Well, that takes a different kind of vision, the kind possessed by Canete as he positions his business for the next thirty years.

Anne Moore Odell is a freelance writer who focuses on green businesses and socially responsible investing. She lives in Vermont with her husband and sons.