There is little reason to not offer customer financing if you are a home improvement contractor. Countless homeowners in the United States would be relieved to pay only a fraction of the cost per month as opposed to thousands of dollars at once, and many can only afford to go this route. What are the practical steps home improvement companies need to take to make it happen? Here are the simple steps to set up customer financing.
Choose In-House or Third-Party Financing
The first decision you will need to make is whether you will have in-house financing or third-party financing. In either case, you will likely see a decrease in cash flow in the interval between setting it up and your first customer purchase through financing.
With in-house financing, you will be more in control of the process but will have to do all the work yourself or hire someone to help manage accounts. You also take on more risks.
Third-party financing involves paying service fees, but they will take care of much of the business for you. The third party’s financial expertise will help educate and guide you to get the best customer financing deal possible.
For Third-Party, Get the Best Deals
What does a great customer financing deal look like? It should be as risk-free and inexpensive to the customer as possible. For example, customer financing should not impact the user’s credit score, have zero interest, and have low, fixed monthly rates.
The deal should also be as flexible as possible. The financing could apply to any service your customer uses of nearly any size and span various timeframes. You could also offer a cashback incentive for customers who pay back loans in a shorter amount of time. Even so, it helps to offer different loan payment timeframes, such as 12 months and 15 months.
Make It Easy
The customer will have to apply for a personal loan. Quick turnaround times and options for those with lower credit scores are ideal. The whole process should be easy for the customer to navigate and swift. A pleasant experience will help increase repeat business and a great business reputation.
Advertise Financing Options
Once you have set up customer financing, broadcast it across all channels and make it a part of your sales process. Feature the option on your website, your social media, and all other marketing outlets. Include it in part of your sales conversion process, and enable your estimators to educate your customers on the option.
Pure Finance Group Is Here to Help!
Thank you for your interest in Pure Finance Group. We’re so excited you’re here. For more information on how our lending services can help you with your home financing needs, give us a call (410-401-4957) or fill out the form on our contact page today. If you have a question about any lending services we provide including home improvement loans, we are here to help answer all your questions. Just give us a call (410-401-4957) or contact us today. To keep up-to-date with the latest financing tips and solutions, keep in touch with us on Facebook and LinkedIn!