The estimate is on the table. Your customer trusts your expertise. And then comes the question: "So…how does the payment part work?"
That question isn't a red flag. It's a buying signal.
Customers who ask about financing want to move forward. They just need to understand their payment options. The problem? Many contractors don’t have confident answers.
Here are five financing questions you'll hear and how to handle them to keep the sale moving forward.
1. "Do You Offer Financing?"
Customers who have to pay for their whole project right away are more limited in scope than those who have the option to break their costs into monthly payments. Try to mention your financing options before your customer has to ask, but if they bring it up, be ready with a simple, confident response.
Ex. "Yes! We offer monthly payment options. If you'd like, I can get you prequalified right now. It only takes a few minutes and won't affect your credit score."*
Pro Tip: Mention financing options in your marketing materials, on your website and during your initial consultation. Share example project estimates that break the cost into monthly payments to make projects feel more accessible.
2. "Will Applying Affect My Credit Score?"
Many customers hesitate to apply for financing because they're worried about a hard inquiry on their credit report. Let them know that many financing partners, including Foundation Finance, offer prequalification with a soft credit pull so that they can check their options without affecting their credit score.
Pro Tip: Reassure customers that prequalification is a risk-free way to explore their options. A hard inquiry typically only occurs once they submit a full application and sign financing documents.
3. "Can I Get Approved with Less-Than-Perfect Credit?"
Many homeowners assume that weak credit means they can’t qualify for financing. Foundation Finance offers approvals for FICOs as low as 550 and a second-look program designed specifically for customers who have been turned down for financing elsewhere.
Pro Tip: Let customers know that there are options for various credit situations. You don't need to know their exact score. Just encourage them to prequalify.
4. "What Would My Monthly Payment Look Like?"
Homeowners want to understand what they'll actually be paying each month. They want clarity on interest rates, term length and whether there are any promotional options like deferred payments or same-as-cash options.
Pro Tip: Be prepared to walk through a sample payment scenario. For example, show how a $15,000 project might break down into manageable monthly payments. Once your customer is prequalified, you can use the payment estimator to show them what their actual payments could look like with different project add-ons, special promos or term lengths.
5. "How Does the Process Work?"
Your customers may be new to home improvement financing and have basic questions such as how to apply, how long does approval take, and when can the project start. Walk them through the steps in simple, direct terms.
Pro Tip: Explain that the process is typically quick and straightforward and keep them updated about what to expect at each stage so there are no surprises.
The Bottom Line
When homeowners feel confident about financing, they're more likely to move forward with their project right away. Don't wait for customers to bring up financing. Be proactive, be prepared and make it easy for them to say yes.
Interested in other ways Foundation Finance can help you close your next sale?
Contact us for more info: 1-855-241-0024, [email protected].
*Upon receipt of a completed credit application and executed contract documents, a hard inquiry (which may affect the applicant’s credit score) will appear on the applicant’s credit report.
