The dealers who are most successful in operating a strong consumer finance program use multiple financing partners. Each company has its own area of expertise and experience in risk management. Finding the programs that work best with each other and running them in a specific workflow order methodically will give you the most approvals possible.
This flow and order of financers is known as a waterfall. One of the main goals of a consumer financing waterfall is to approve more customers.
Take time to learn what approval criteria each finance company uses and plan the order of your waterfall accordingly.
Example 1: If you use two companies that both pull Equifax, you probably won’t see many additional approvals from this flow.
Example 2: If you use a finance company that offers both primary and secondary programs first in your waterfall, you can help save time and money (and limit the number of “hits” on your customer’s credit) by serving prime, near-prime and subprime customers in one place.
Some companies, like Foundation Finance, offer customer prequalification, so you can check your customer’s financing eligibility without negatively affecting their credit score.*
Make sure any companies you consider adding to your waterfall meet a need. Some factors you may want to consider include:
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Do they serve your market?
As our partner, you can offer approvals for a wide range of home improvement industries.
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Do they offer second looks?
We offer first and second look financing.
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What range of credit scores do they approve?
Foundation Finance approves customers with FICOs as low as 550.
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Availability of special promotions?
Offer reduced interest rates, same-as-cash, deferred payments and more with FFC!
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How long are approvals valid?
Our approvals are valid for 180 days.
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Maximum funding amount?
We offer approvals up to $100,000.
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Are there hidden fees or required minimums?
FFC has no hidden fees or required minimums.
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.
*Upon our receipt of the customer’s completed credit application and signed financing documents a hard inquiry on the customer’s credit (that may affect the customer’s credit score) will occur.
