Business Articles - Trade Tips - From David Lupberger

People have asked if using credit cards would be beneficial to their businesses. This is due to negative feedback from the remodeling and construction business about payments not coming through due to cancellations, credit card limits, and various other reasons.

I don't know what you are selling, but offering consumer financing through credit cards will enable more customers to purchase your products and services. It should also allow you to charge a little more due to the increased customer service that you offer, and that can easily offset additional credit card fees. If you are financing purchases between $500 and $5,000, using credit cards may enable potential customer to purchase your services because you are giving them a way to make the purchase. I have not had many tradespeople complain to me about using credit cards.

There are legal steps you can take if a customer refuses to pay for work that you have completed. If you are using credit cards, make sure that you spell out any penalties in your contract if a customer refuses to pay. Consult with your attorney on the best way to do this.

That is my take on this. Now, I'd like to hear what successes, or the downside, that other contractors have had with credit cards. Who accepts credit cards, and have they made your business more successful? If you don't use credit cards, does anyone offer financing, and what have the results been? Please let me know your experience around offering credit cards or financing to customers.