There are a lot of things to consider when choosing which financing companies to work with, and truth be told, it’s not always easy to know what to look for. Should you focus on customer service? Benefits? Cost? What works best for you and your customers isn’t necessarily what works best for a different contractor. To figure out which companies are good contenders for your business, you should consider the following questions.
What is the maximum approval amount?
Each customer’s project and financial situation is difficult, so it can be tough to guess how much financing each customer may need. However, you should know the maximum each company offers so that you can plan accordingly.
What credit scores will they work with?
Your customers likely represent a large range of credit scores. If the company you’re considering has a narrow range of credit scores they approve, don’t worry. They may be a great fit for some of your customers, but you should also look at a company that offers deep buying and second look financing so your other customers don’t get left behind.
Do they offer free APRs? How do they compare to other financing companies’ APRs?
Offering financing should benefit both you and your customers. Look for companies that offer free financing options so that you can maintain your profit margins and APRs that fit your customers’ budgets.
How long are approval decisions valid?
Labor and material shortages can hinder even the most well-organized project. Consider how long your typical project takes to complete and consider that time frame when researching a potential financing partner.
Are there any hidden fees?
Other finance companies have hidden fees which can add up over time. Ask about volume requirements and other hidden fees before enrolling with a finance company.
How many finance companies should you work with?
Each finance company is a little different, so it’s a good idea to have an active relationship with a few financing companies. This will ensure you can find the best rates and special promotions for a wide range of your customers’ needs.
At Foundation Finance, we pride ourselves on our transparency and support for the contractors we work with. Contact us at 1-855-241-0024, [email protected] to find out if our services are the right fit for your business, or enroll in the Foundation Finance dealer network today.