The topic of financial loans and mortgages for log cabins are entirely subject to the geographical location your customers are based in. Some might say as a log cabin supplier, you should not be advising your customers with financial questions at all. However, at Eurodita, we feel that it’s good to be informed in all aspects of log cabin trade and when your bespoke log cabins for sale start moving, you should be ready as well. Clients feel safe and show a higher level of trust if their log home supplier is informed and at least directs them to the right avenue for financing.
So, in this blog post, in broadest terms possible, we will discuss what the options are for mortgaging a log cabin, taking on a loan and financing in general. If you’re a log home wholesale business that is just starting off, these ideas the directions might be especially interesting to you.
What about a classic mortgage?
A mortgage from the bank means that the client’s permanent residence is mortgaged as assurance in case of non-liquidity. To answer in short, if your client is purchasing a standard log cabin or even any of the bespoke log cabins, this option in most countries is not available. Due to legislation, only a certain value log houses MAY be considered as valuable enough to be mortgaged for protection. This is the first thing you should look into yourself as a log cabins supplier and advise your customers accordingly. Browse through the local legislation or even call up banks in order to get a good answer as to how you could direct your clients. Bespoke log homes and contemporary residential log cabins may be eligible for a mortgage, because they could be built in much higher value than a simple log cabin, but local investigations into this question needs to be made.
Financing options
If you’re looking to trade large volumes of prefab cabin kits without building options, you might want to consider offering financing options to your customers. Partnering up with local loans companies or banks could help you launch this aspect of your business. This way, smaller log cabins could be sold in higher quantities, while you will be getting a steady supply of income at a designated time. This approach suits companies that operate as a log home wholesalers or just keep a certain number of models in the warehouse and are looking to turn them over fast. This model would not be so suitable for bigger, bespoke log homes projects.
Alternatively, you can set up a partnership with a loan company, to which you can direct your customers. Loan companies that offer medium amount, long-term loans are a great fit for the bespoke log cabin company, as they will be able to issue large enough sums to allow your customers to buy the cabin up-front. This would be a mutually beneficial relationship if set up properly and it could mean more business for you both. Here, however, our advice becomes even more murky, as each loan company could demand a different type of partnership. However, it’s an avenue that could be explored and negotiated.
Whichever type of log cabins supplier you choose to become, know that financing advice is not the critical aspect. However, you having answers to a vast majority of your customer’s questions will help you built rapport with them and ensure a long-term trust, in case they will be returning for their second log cabin. The key is always the quality, the timely delivery, the attention to the client’s wishes and the availability of bespoke options if necessary. If not the financing aspects, these ones we can help you with if you choose to become our partner.