Having an in-house financing program as part of your sales toolbox is a tried-and-true method for many retail industries. Consumer financing programs like same-as-cash and low monthly payments are common in furniture and jewelry stores and widely popular in vehicle dealerships. So why are some home improvement contractors reluctant to offer financing? Let’s break down some financing fear factors.
It’s Not Too Complicated.
Some contractors worry that financing programs are too complicated to deal with. But by selecting the right financing partner – like Foundation Finance Company – contractors have nothing to fear! The entire financing process can be completed in five simple steps:
- Submit a credit application
- Complete the loan documents
- Complete the job
- Customer receives a verification call
- Contractor gets paid via ACH
With digital conveniences like online credit approval and electronic document signing, all the contractor really has to worry about is completing the home improvement project.
It’s Not Too Expensive.
Contractors face the tough task of selling customers large price tags for products and dream upgrades that are typically in the thousands. Sticker shock is inevitable. Here’s where offering low monthly payments with a financing plan can soften the blow…and contractors have the opportunity to offer a free reduced APR promotion for every customer. Don’t lead with the project price, lead with the low monthly payments. “It will cost around $80 a month for the full install, or you can upgrade to the premium package for only an additional $20 per month.”
It’s Not Too Hard to Offer.
Most customers don’t know how to ask about financing when they’re shopping for a big-ticket home improvement. Some are too embarrassed to ask for financing, especially if they’ve been turned down somewhere else. Offering financing helps build the customer relationship. It’s not hard to bring financing into the conversation when you have competitive and helpful offers like reduced APR, same-as-cash and deferred payment plans, and low payments with longer loan terms. Bring it into every sales conversation. The positive results will inspire you!
Now, more than ever, customers need your financing. If fear is your deterrent, contractors within Foundation Finance Company’s dealer network receive personalized training, helpful online resources, and an experienced dealer support team standing by for assistance. Cast your financing fears out the window and start closing more sales with an inhouse financing program.