Second Look Financing, also known as “Discount” financing, is a way to approve a deeper level of credit–including customers that most “prime lenders” (like banks) would decline–by sharing a portion of the risk with the dealer. In other words, it’s a second opportunity for a customer to afford their dream renovation or emergency necessity. And a solid opportunity for the dealer to close a valid sale.
Is Credit Score the Only Factor in First Look Declines?
For some financial institutions, yes. That’s all it takes. For others, like Foundation Finance, a variety of factors are evaluated for first and second look approvals, including the livelihood of those requesting the financing.
David S., a Senior Underwriter at FFC, shares: “Foundation Finance provides a valuable service to dealers who turn to us for financing. Having come from a sales background myself, we need to remember the importance of what a loan approval means to our Dealers and their salespeople. An approval means a Dealer can continue to provide services…and their salespeople receive commissions from those approvals so they can provide for their families. We sincerely strive to approve every loan where appropriate.”
Credit Score Insight
Ranging between 300-850, credit scores provide a quick snapshot to a customer’s financial health. A guide from TransUnion summarizes:
- A FICO score of 800 or above is considered “exceptional” credit.
- Scores from 740-799 fall into the “very good” credit range.
- Scores between 670-739 are considered “good” scores.
- A “fair” score falls between 580-669.
- Any score lower than 579 is considered a “poor” score.
FFC approves up to 77% of the deals other lenders decline
At Foundation Finance, we know what dealers need to be successful and competitive in the current market: deep, flexible credit approvals that give your customer fair financing to complete the deal and feel satisfied.
“I love that Foundation Finance will approve customers that many other banks may not approve. This means we are able to keep our sales. I also love the fact that FFC calculates the expiration dates for me. No other lender does that!” Amanda N., Finance Manager at Prince William Home Improvement
“We signed up with Foundation Finance thinking we could save a million dollars in sales in our first year with them. They approved $3.5MM in deals for us – that worked within our profit margin – in the first 6 months! They are approving 77% of the deals our primary lenders decline. This has hugely boosted our revenues.” Midwest contractor with 7 locations
Close more sales! Leverage the selling power of competitive and convenient financing–every time you call on a customer! Contact us today for more info: 1-855-241-0024; [email protected].