If you’re losing a sale because your customer’s home improvement financing was denied by a prime lender, a second look can give your business the opportunity to win the sale and gain a happy customer. Second look financing, also called discount financing, offers a chance at a credit approval for a potential customer declined elsewhere. One of the advantages of working with Foundation Finance Company is that, unlike “approve or deny only” lenders, FFC can also approve customers with weaker credit. This is especially helpful in today’s transitioning economy.
Why let the customer walk away without your business because of lost financing? There’s good business strategy in second look financing:
- It’s a sale. Some profit is better than no profit
- Your second chance deal can prevent customers from using a competitor
- The positive customer experience creates future sales, service and referrals
- Creates breaks from suppliers on pricing due to greater volume of sales
- Keeps your staff’s project list full
Here’s an example of how second look financing can help a home improvement dealer’s bottom line: A $5,000 sale turned down by a prime only lender = no revenue for the dealer. If Foundation Finance can approve that loan at a 90% bid (10% risk discount), the dealer is paid $4,500, turning a loss into incremental revenue that would have been missed. (The actual risk discount will vary based on the customer’s credit and application information.)
A Painless Process
It’s simple to submit a second look financing request. In fact, you can use the same signed credit application the customer submitted to the other lender, provided it has all the details Foundation Finance requires to process an application. The simplicity of re-using the same app is a big win! You can submit it via email, fax, a phone call to the credit team, or online within the dealer portal.
A High Approval Rate
Foundation Finance approves up to 77% of the deals other lenders decline. A variety of factors will determine whether the financing can be approved–which is why the underwriting team looks at more than just the credit score, striving to make the right decision for everyone.
The Hero Factor
Gaining a loyal customer is important for any business. Rescuing someone from the disappointment of not being able to finance a home improvement they need (like heating or cooling) or want (like energy efficient windows) creates an instant emotional connection. Offering a second look can literally make you your customer’s home improvement hero! And chances are, you’ll see that customer again…as well as their friends and family.
Foundation Finance believes in providing deep, flexible credit approvals that help you close more sales, especially in this competitive marketplace. A second look financing request is not only smart business, it’s the right thing to do to help a potential customer. There are a lot of bottom-line positives in second chance sales–don’t let the next opportunity slip through your fingers.