Financial Empowerment for Contractors Unlocking Opportunities with FMC Expertise
Published March 5, 2024
Financial Empowerment for Contractors Unlocking Opportunities with FMC Expertise
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Contractor financing can drive change and improve the future of your business by providing access for more customers who don’t have the available resources to hire your services when paying in full.
After all, when your clients can’t afford to hire you, that severely limits your contracting company’s ability to expand and grow. Stagnant growth can create obstacles for the success of any business, but as a contractor, when you’re not working, you’re not generating revenue.
When you join with a diverse network of third-party lenders through Fund My Contract, you can unlock more opportunities to get hired more often, by customers who need contractors like you for high-ticket jobs. The key for achieving sustainability of your contracting business is to make your services more accessible by reducing the barriers to reluctance due to the cost of the work.
Increased Access Helps Create a Wider Customer Base
Every general contractor realizes that a growing customer base is the best way to build their business. Deliver high-quality work for satisfied clients and the word gets around fast. But if customers don’t have the cash on hand to hire your services, they often put off the work to a later date – which may never come.
Consider this – a potential customer approaches you for a home improvement project that represents a significant dollar amount. Your estimate for the work is fair and your services come highly recommended by previous satisfied customers. But despite all of the reasons why that potential customer should proceed with the job and hire you, the customer has concerns about their financial situation.
They can afford the cost of the work, they just can’t afford to pay the whole bill in one lump sum. As a result, the job that you had anticipated might start in November may not start until the month after…or the month after that. Eight weeks later, it’s the middle of January and that potential customer hasn’t returned to hire your services and that revenue is all but lost.
How many times can you afford to let a potential client walk out the door, hoping they might return sometime in the coming weeks or months, before your business has no future?
Contractor financing through Fund My Contract can eliminate the barriers to conversion by giving the customer options when the bill comes due. When you work with our lenders you can make it all that much easier for a customer to say yes, without putting off the job to some other time.
That’s because financing allows the customer to pay for the work they need over a series of low monthly installments instead of all at once when the work begins. Financing makes the work more affordable because a low monthly payment is much easier to incorporate into a monthly budget over forcing the customer to put off the work to a later date while his or her financial situation can accommodate a high-ticket expenditure like a home improvement project or repair.
When you can offer the customer more freedom of choice in paying for your services, you not only expand your customer base but generate revenue faster and support the consistent growth of your business.
Choose Financing to Ensure Greater Customer Satisfaction
Contracting companies navigate a wide range of challenges and obstacles to ensure the success of their business, especially in a market or region that is highly saturated with like-minded and skilled competitors all bidding on the same projects, targeting the same clientele, and trying to outmaneuver each other.
That can make it very difficult to separate yourself from the crowd and make any contractor feel the intense pressure of staying one step ahead of the competition.
Customer reviews have grown more critical (and popular) than ever before and that’s why a contractor has to work harder than ever for the accolades that will make clients stand up and take notice. Today’s consumer has become more careful and savvy about doing their homework before hiring someone to perform a job that costs thousands of dollars.
When you offer financing through Fund My Contract to help clients afford those high costs, you’re not just providing a client with quality contractor services that ensure the work is performed on time and to the best of your ability, but you’re also offering your customers access to some of the most flexible and innovative financing options in the industry today.
Financing options also give your clients the peace of mind knowing that you have their best interests at heart because you know it can be tough for most people to pay for a kitchen remodel or a roof repair in one payment. Your business is there for the client when he or she needs you the most, providing top-notch labor and choices of how to best afford that labor with financing programs that you have chosen to offer to those clients who need them most.
More choices, more jobs, more quality projects completed…and higher customer satisfaction. All of this can be a reality with contractor financing through Fund My Contract.
Meeting Your Customers' Expectations
The more you talk to your customers, the more you can learn about types of services you should be providing in order to meet their particular needs. As a contractor, you learn to read your clients and find out what they want. You talk to them, understand their concerns, and while no two customers are ever the same, the requests you receive from them start to reveal patterns – especially when it comes to the financing options you provide.
That’s why our network of third party lenders work closely with you to develop and customize financing programs that fit the needs of your customers at the crucial time when you are working to secure a new project. Since you know your clients best, there is no better authority for creating the financing options that fit their needs.
Most clients prefer to have the ability to pay for your services over a series of installments that are affordable each month over paying off the full cost of the work in one lump sum. For many customers, that could mean running up some serious credit card debt that could take years to pay down at an extremely high interest rate.
But when you customize the financing programs you wish to offer, you can provide multiple programs so the client can select the one that fits best and he or she can qualify to participate in when they come to hire your services.
Low monthly payments, promotional interest rates, flexible reimbursement terms, all of these and more can be made part of the financing options you provide so your customers are more likely to hire you on the spot instead of delaying the work as save up enough money to move forward with the job or go to a competitor who offers lower quality work at a lower cost.
How Financing Can Change the Trajectory of Your Business
Contractors who are tired of waiting to grow their businesses and continue to look for ways to expand without cutting into their bottom line or spending too much time chasing after unpaid invoices and overdue bills should look to Fund My Contract to help change the trajectory of their businesses.
Financing can be a valuable tool to help generate revenue and put greater spending power back in the hands of the client. When you have Fund My Contract’s robust third party lending network in your corner, the barriers to conversion are quickly reduced and your contracting company can enjoy more growth and more revenue through a variety of benefits.
Gain the Competitive Edge
Providing financing to your customers can help your business get noticed faster and stand out above the rest of the competition. When you are able to give you clients more choices and more time to pay for the work they need you to perform, at low rates and flexible terms for those who qualify, you are putting your business at an advantage.
If you choose not to offer financing and your customers are left paying for the work through more traditional methods that require a one lump sum payment, you could be putting yourself and your business at a considerable detriment, especially if the other guy across the street offers financing instead.
Healthier Profit Margins
Failing businesses will do just about anything to turn the tide against them. A small business owner desperate to keep his or her company afloat will start offering massive discounts and highly unrealistic promotions that only serve to put the company out of business sooner instead of help it survive.
A struggling contractor who reduces their rates will start to cut deep into the profit margins and when there’s less of a profit after all of that hard work has been performed, chances are that contractor won’t be in business much longer.
Customers who can’t afford to pay for your services in cash will have an easier time when they can finance the work instead. Financing options through Fund My Contract can have your customers hiring your company faster and help you avoid lowering the costs of your labor.
Fast Approvals
Fund My Contract has one primary goal in mind — to help you business grow and expand. They do that with fast approvals for clients who apply for financing, so your business can get to work on the projects that put revenue in your pocket. When a client tells you that he or she would like to apply for one of the financing programs you offer, they simply access our online application portal, where they fill in some basic personal information along with the amount needed for the job they need you to perform.
The client can find out if they qualify in a matter of minutes and we examine a range of criteria that goes beyond a credit score (though we do consider the score as just one of many deciding factors). Additional information such as employment history, debt-to-income ratio, credit history, and other aspects of the client’s financial picture all play a role in the decision-making process. That’s why qualifying clients with a FICO score of 600 can get approved.
Faster Payments
Once your client turned applicant gets approved, he or she will then agree to the terms of the financial arrangement and receive the funds they have requested. Once that financing is complete, the funds go directly into your business and nowhere else. Those resources cannot be used for any other purposes with any other contractor or business, period. The money can only go towards the project you have been hired to complete.
Best of all, you receive payment in full for the services rendered. You get paid the full amount of what is owed and the lender collects payments from the client as per the financing agreement. You no longer have to chase after late payments from clients and struggle to collect on overdue accounts in arrears.
You’re a contractor, not a collections agent. The money you receive is yours because you have done the work you were contracted to perform.
Reduce the Pain Points
When you offer financing to your clients, you are eliminating the potential for a customer to hesitate. If they balk at an estimate because they can’t afford to pay the cost of the work, you can include your financing options at the time you turn in the estimate, so the customer is already aware of the financing options they can select.
This reduces the pain points that can keep a client from moving forward with the project by reducing the barriers to conversion due to the price of the work.
Call or Email Fund My Contract Today
If you are a contractor who wants to ensure the future success of his or her business, it pays to reach out to one of our financing experts who can walk you through the process of completing a membership with Fund My Contract. Learn more about the ways financing can help you increase sales, generate more revenue, and make this your best year yet.
Make the change that your contracting company and your customers have been waiting for and get started on your journey towards long-term growth and expansion. Are you ready to increase sales and generate more revenue? Call Fund My Contract today.
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