The consumer demand for home improvements has held strong during the pandemic. As homeowners spend more time at home, they’re realizing the positive advantage renovations can have on their stay-at-home lifestyles.
Financing has become a critical component of the customer sales journey. It not only helps the consumer in tough economic times, it also helps close the sale and reveal the affordability of an upgrade. A 2019 Forrester study showed that businesses that use point-of-sale financing close 30-70% more sales than those who don’t.
Here’s how to use your financing program to enlighten your customers on the affordability of their dream project.
Monthly payments are the key.
Offering financing helps you more easily upsell customers to larger projects or higher quality products because you’re able to present the price in monthly payments versus one lump sum. For example, saying “It will only be $25 more per month to go to the Platinum Package” is easier for customers to say yes to than “It will be $2000 extra to upgrade.”
Specific examples are also key: “$30 more per month will get you a granite countertop, while $50 more per month will get you marble.” Your customer will understand how a slight monthly increase will result in the upgrade they’ve always wanted.
Pair financing with a promotion to close on the spot.
Financing is a powerful tool on its own, but when it’s paired with a promotion you’ll have the flexibility and competitive edge to close a project upgrade on the spot. A “12 months same-as-cash” or “no payments for 90 days” promotion makes the additional cost of the upgrade feel doable.
Having a financing program available is critical to getting your customer comfortable with buying “today” versus waiting and not settling for less because they can’t afford it.
Focus on benefits to the customer.
There are many benefits to share! Financing is unsecured so their home is not at risk; interest rates are lower than credit cards; and approval processes are faster and easier than with banks. Terms are also longer than other types of financing products, making the monthly payments lower, and there aren’t any prepayment penalties.
A customer is more likely to commit to a project when they realize they don’t need to drain their savings or take out a complicated home equity loan. Choose a financing partner with programs helpful to both you and your customer. Foundation Finance provides:
- Unsecured installment and revolving financing up to $75,000
- Credit decisions in minutes
- First and second looks with FICOs as low as 600 considered
- Free reduced APR promotion for every customer
- Low-fee APR buydown, Same-As-Cash (SAC) and deferred payment promotions
- Terms up to 180 months or payment factors as low as 1.25%
- Dealer bonus for customer ACH signup
- Customized dealer training and personalized support for your entire team
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