RobKanda

One of the features we recently launched and have a good user base using is an estimator widget we host, specific to the contractor, that allows for estimation fo boiler installations. We're also working on an electrical installation one at the moment. These allow the homeowner to get a quick estimate without bothering the contractor, then select an option if they decide that's what they want, at which point the contractor is sent an email to arrange with the customer. We work with the contractors on these to ensure they're as accurate as possible, and priced as the contractor wants.

In terms of the dishonesty, we believe that's a completely untrue and unfounded accusation. We have a very trust worthy base of users, who whenever an issue has been raised have been the first to jump at rectifying the situation. In our contractors eyes, customers can be the untrustworthy ones, not paying on completion, saying things aren't up to code when they are, accusing the contractor of property damage they didn't cause. We try not to discriminate.

The bank we offer the finance through run full credit checks and assess the risk. Non-payment is only tied to our lending bank, the tradesperson isn't at risk. If the customer is a risk of non-payment, the bank will elect not to lend to them. For the tradesperson, we'll let them know if the customer has been rejected for finance, and they can choose to proceed with the work and hope the customer can pay them if they choose, or decide the customer isn't worth the risk

The bank makes commission on the 0% finance - we charge the tradesperson a 9% subsidy for any 0% finance agreement taken out, which includes the bank's fees. If the customer takes personal loan finance, then the bank charges them an APR instead.

Thanks for the heads up on the spelling mistake! Slipped through review somehow!

Thanks! It's certainly a consideration we've had, we have the full history of the tradesperson through our site, and would have the same for customers, so a tradesperson would know if a customer is trust worthy as well! Win win for both sides of the equation

Whilst you could maybe set up a monthly payment plan for your customers, that leaves you very exposed to them not paying. Assume you have three or four customers on a payment plan, and they decide not to pay, you could be out of money for the month, not be able to complete other jobs, etc. Also, there are legal obligations and restrictions in place for these types of agreements as well. With us, the tradesperson has no risk of non-payment. They are paid the full amount on completion.

We've seen it here in the UK as well, with the larger firms being able to offer finance, either by lending their own money or agreeing with a bank and having spent the time and money to ensure they're fully compliant. This compliance includes how they can advertise, how they can talk to customers about finance, how they can handle their invoices and payment plans, etc. For the UK, they need to stay compliant with the FCA. With Kanda, we ourselves are the ones offering the finance. All of our systems, advertising (including the bespoke social media advertising we give to our contractors) and such are compliant, so the tradesperson knows they can use us and not need to worry. We're putting finance in the hands of the every day contractor, something previously only available to the larger firms who have outlaid costs

Well if they wouldn't qualify for financing, then the contractor is informed the customer is unlikely to pay for work, so they know not to work for them. Similarly, if they are approved, the contractor knows they will get paid, as the money is held by Kanda upon the customer agreeing to the loan. It becomes a win-win situation for the contractor. Finally, they are completely de-risked - if there is a non-payment, it'll be the bank who has to follow up on the non-payment and recoup any costs. All this does is empower tradespeople to ensure they're paid fairly for their work

We're a UK founded and based company, so we see this all the time as well. The finance option makes it a lot easier to sell to a customer - if you're told you can pay £700 for a TV today, or take it away and pay £30 a month for 2 years, most people would rather take the finance. I don't know why the sales reps would only get commission for finance sales, but the stores would rather take a small loss and make a sale than lose a customer to a high price.

For our tradespeople, most of their customers know they can get finance from companies like British Gas. Even though our tradespeople would be cheaper outright, BG can offer 0% and so the customer doesn't have to pay it outright. We've had people tell us they signed up to use us for this very reason, with someone even saying BG were £1000 more expensive, but the customer went with them as they could pay monthly!

These fees are actually representative of the fees charged to retailers to offer 0% financing options. We don't hide these fees from the tradespeople, so they can decide to up their price to include that fee if they wish, or can choose to swallow the cost to win more work. We put the power in their hand to decide how they want to handle each situation as they see fit

Whilst some outside financing is available, for the general contractor the ability to offer 0% finance just isn't there. Kanda provides these contractors the ability to offer this and compete with larger companies. Rather nicely, the agreements that both parties sign on our finance products actually achieve what you’re asking for: the customer signs a satisfactory note on completion of the work (assuming they’re happy) which allows the release of funds.

For customers, however, we do know that an issue can be that work isn't completed to the standard you expect. One of the products Kanda hopes to bring to market soon is a secure holding account to arbitrate payments, allowing upfront payment with tranches released on milestones being completed, pretty much exactly as you've explained above, to hold both parties to agreements.

We currently require our contractors to be associated with a regulatory body, who can inspect their work if a dispute arises. In the UK, this is mandatory anyway. The customer also signs a satisfactory notice on completion, and we encourage them to ensure they are happy with the work before signing the note

Whilst you could take out a HELOC to complete a home maintenance project, the minimum you can often take out is $5000. If your project was only $1000, you may end up paying more in interest for the HELOC rather than a personal loan for the amount you want to borrow with Kanda. Not only that, but our tradespeople can offer 0% finance to their customers, reducing the repayments even more. Sure, if they were unlikely to get an HELOC they are unlikely to get approved with us, but then the tradesperson knows the customer is unlikely to be able to pay for work completed and is protected

The risk of non-payment falls onto the bank we are partnered with. The finance agreement is between us (and the bank) and the customer, so the tradesperson is completely de-risked

One of the products Kanda hopes to bring to market soon is a secure holding account to arbitrate payments. You could pay electronically upfront into the account, letting the tradesperson know you can pay for the work, and the money would be released upon completion and once you are happy with the quality of their work