Contractor Financing Is A Sales Asset - Foundation Finance

Contractor Financing Is A Sales Asset

In-home sales for the home improvement customer have become even more challenging amidst the continuing pandemic. Nonetheless, homeowners are reaching out to contractors for HVAC replacement, water treatment, energy efficiency, and home upgrade projects.

Business owners need to be prepared at every moment to capture the sale. For contractors, that means being armed with all the winning tools, including financing.

It’s in the data.

Data shows that offering financing as a part of every sales call—regardless of perceived project request or customer income level—secures more deals. It also opens an opportunity for homeowners to do larger or multiple projects.

Recently, Andrea McCullion, Sr. VP, Sales & Marketing at Foundation Finance Company, spoke with contractors from across the country. A veteran in the finance industry, she knows very well that access to competitive consumer financing can make or break a sale. “One of the biggest things I hope contractors understand is the bottom-line impact financing can make on their businesses.”

“From 50% higher tickets, to  more than 20% increases in closing rates, industry data shows how much more contractors who consistently offer financing can sell compared to those who don’t – especially when using a lender like Foundation Finance that can approve both ‘first look’ and ‘second look’ customers with a simple process flow.”

Being in control of the sale, from start to finish, gives contractors the best chance to secure it. The addition of FFC’s competitive financing program strengthens close rate success by being able to offer installment loans up to 144 months, revolving lines of credit with low payment factors and a variety of same-as-cash, deferred payment, and reduced interest rate plans that meet a homeowner’s needs. Further, FFC approves up to 77% of sales that “prime only” lenders decline.

Partnerships matter.

FFC works with nearly 7,000 contractors nationwide. A recent dealer survey highlighted ‘customer service’ and ‘amazing employees’ as two of the biggest reasons contractors love working with FFC. Partnering with a financing company whose main goal is aligned with yours – close more sales – is an essential success factor.

In 2018, FFC partnered with Leap to provide contractors an effective point-of-sale application that digitizes the in-home sales process, including generating digital contracts and capturing e-signatures.

Increasing operational efficiencies and bringing technology to the kitchen table to improve the homeowner experience is important to everyone, notes Andrea. “Leap’s focus on helping contractors save time and money fits completely with what FFC tries to do in our business relationships. The easier we can all make things for contractors, the more time they have to sell which is win-win for us all.”

In a competitive environment, every detail makes the difference in gaining or losing a sale. If you don’t already have a financing plan in your sales portfolio, seriously consider adding one. It’s an asset that many homeowners will be thankful you have.

We’re in this together.  1-855-241-0024   [email protected].

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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