Don’t let a few minutes of time cost you thousands of dollars in lost deals. Bring your customers that were declined elsewhere to Foundation Finance for a second look. Our financing programs can offer approvals for customers with a wider range of credit profiles, including those that most prime lenders (like banks) would decline.
How does it work?
By sharing a portion of the risk with the dealer, through a risk discount, we are able to offer approvals for customers with FICOs as low as 550, depending on the customer’s credit and application information.
How can second look financing help close more sales?
A second look can give you financing options for a customer who may otherwise be unable to move forward with their project. This turns a zero-dollar sale into a profit opportunity.
Example: You have a $5,000 financing request turned down by a “prime only” lender. Instead of losing the sale, if FFC approves financing at a 90% bid (10% risk discount), you get 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.)
How much risk discount is too much?
Knowing your margins is important to ensure you profit on all your deals. Figure out where your margins are and how much you can afford to spend on financing since those costs cannot be passed on to your customer. If a discount is larger than what makes sense for your company, simply decline the offer and pursue an alternate payment method with your customer.
Should I partner with multiple finance companies?
Each financing company has their own criteria for approving customers, so working with more than one gives you more opportunities to fit your customers with the right company for their specific needs.
Where does Foundation Finance fit in?
Foundation Finance has great benefits for all of your customers, including options for customers with FICOs as low as 550. Our second look financing program can help you build your bottom line with sales other lenders decline. We also have great dealer benefits, such as a simple financing process, free marketing materials, and a dedicated team to help answer all of your financing-related questions.
Interested in other ways Foundation Finance can help you close your next sale? Contact us for more info: 1-855-241-0024, [email protected].
You can build on us. Enroll in the Foundation Finance dealer network today.
