If you’ve never offered financing before, it might feel a bit intimidating. After all, it’s probably not your natural element — fixing properties and making them great is. But when you’ve got the right financing partner, it can open doors for your customers to complete the projects they really want, and for you to grow your business to the next level. Financing can help create trust with customers, and provide them with more options. You’ve probably got questions, and we’re here to answer them. Let’s jump right in.
What exactly is home improvement financing?
Home improvement financing offers homeowners a way to make upgrades, improvements, and repairs to their home without having to pay out of pocket upfront.
Good financing options will offer $0 down and a competitive interest rate, so your customer can make upgrades now and pay them back through low monthly payments.
Terms and rates will vary, but generally longer terms mean the cost is spread over a longer period, effectively lowering the monthly payments.
What does offering financing really involve?
We like to think of it as a ‘kitchen table closer’. After you’ve met with the homeowner, discussed their needs and quoted a project, your team is able to offer an easy way to make those dreams and necessities happen.
You’ll help customers complete their application using an app on your tablet, laptop, or even your smartphone. Pre-approval results arrive in seconds, and can be handled entirely online — so there’s no physical paperwork needed. You can help customers determine the right monthly payment, thanks to flexible term options. Then, you’ll walk away with a signed deal and the funding to get started right away. That’s a win-win for both of you.
As a contractor, what do I need to get approved to offer financing?
Your company will just need to provide General Liability Insurance and a W9 for tax purposes. As long as you meet local/state contractor licensing requirements and are insured, getting approved is easy. You can check out our registration checklist for additional details on the registration process. When you're ready to register, visit our registration page to sign up.
Finding the right lending partner.
If you’re new to financing, there are a few things to consider that can benefit both you and your customers.
High approval rates: For financing to really be worthwhile, your customers ultimately have to be able to get approved for it. Finding a lender who is willing to accommodate most homeowner’s financial needs and situations will be hugely helpful. For instance, Benji Financing has an 80% approval rating, which means that 4 out of 5 times a homeowner sits down with you to apply, they’ll receive an approval.
Fast, paperless approvals: Some financing can involve a lot of paperwork. But with the right system in place, it can go quickly and smoothly. Benji’s process is totally paperless, and can be completed online from your tablet or smartphone.
Sign on fees: Some financing companies charge sign-on fees, though Finance of America Home Improvement never does. We offer a range of financing options, many of which do not have any associated costs for contractors to offer. In fact, many contractors are able to grow their business without spending a penny.
Support: A lender should provide you with both sales training and back office support, as well as on-demand help with applications and approvals.
Have more questions about how financing works? We’re happy to answer your questions and help you get familiar with just how home improvement financing works. Give us a call at 844-722-7759 or click below to learn more.
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