Accepting Discounted Financing Bids - Foundation Finance Company

Accepting discounted financing bids – build your bottom line

Most lenders in the home improvement financing space are considered “approve or deny lenders.”  This means they approve or deny applications for credit solely based on the customer’s credit score – which typically needs to be prime.  So, what happens to customers that have average credit or credit with a few hiccups?  That’s where second look financing (also known as discount financing) comes in.  At Foundation Finance, we can approve customers with a wide variety of credit; we also have a great second look financing program.

Instead of denying a customer because their credit is weaker, we can approve at a discounted bid meaning you (the contractor) will pay a risk discount fee.

Here’s an example:

$5,000 sale to a customer with weaker credit.

Turned down by an “approve or deny lender”.

FFC approves the loan at a 90% (10% risk discount for the dealer). *

Customer still finances $5,000 for the project.

Dealer is paid $4,500 at funding time.

Why accept a discounted bid?

  • Close sales that other lenders decline – build your bottom line.
  • Some profit is better than none or even just covering expenses.
  • Get future business from existing customers for projects or service. For instance, this year the customer needed new windows.  Two years from now they may need siding.
  • Increase referrals – happy customers are likely to recommend you. If you’re able to finance a project for them that another company is not – it’s win/win.

Let Foundation Finance show you how we can make second look financing work for you.  Call us at 855.241.0024 ext. 5012 or email
[email protected].

*Discount fees are based on the customer’s credit and application information.

Note: Use of the terms "Loan," "Lender" and "Borrower" is for ease of reference only. Financings are in the form of retail installment contracts ("RIC").

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