How Home Improvement Financing Supports Business Growth
Published August 13, 2024
How Home Improvement Financing Supports Business Growth
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A customer who is intent on mounting a major home improvement project may turn to any number of financing options to cover the total cost of the work. A home equity loan from one of any banks, credit unions, or online lenders, a cash-out refinance loan or even paying for the work with a credit card, these are common choices that can have that customer paying significantly more than the original loan amount with high interest rates and a range of never-ending fees.
What if there were a way for your customers to get the home improvements they need without the exorbitant additional costs while helping small businesses like yours grow and expand at a faster rate?
With Fund My Contract, you can offer your customers affordable financing programs with flexible terms and low monthly payments that won’t make laying new flooring, repairing a roof, or installing energy efficient updates to their homes a far more expensive proposition due to hidden fees and high interest rates of credit cards and HELOC’s.
The Advantages of Home Improvement Financing Options with Fund My Contract
Your home improvement business can benefit from offering financing to your customers in a number of ways because Fund My Contract has a deep and abiding commitment to helping small businesses just like yours grow and expand on your timeframe, not someone else’s.
Our network of third-party lenders have been helping contractors of all sizes attract more business by helping homeowners afford their home improvement projects through the most innovative financing programs in the industry. Whether it’s a repair or a remodel, when a homeowner approaches your contracting company, he or she typically doesn’t have the available cash on hand to cover the costs of the project in one lump sum. Sure, they can afford to move forward with the project, but paying all at once could put a serious dent in their budget for the month.
As a result, the customer may decide to wait, putting off the work for the foreseeable future or even seeking out a lower price from one of your less skilled competitors down the street.
When you can offer financing programs that allow the customer to pay for the work over a series of low monthly payments with low interest rates (for those who qualify), the customer is more willing to engage your service to improve the value of their home.
The customer benefits and your business benefits in the following ways:
Quicker Conversions
No conversions means no revenue. Basic. Simple. Until your customer closes that sale, signs that home improvement contract, and you and your team are performing the work for which you’ve been hired, your business is not bringing in any income. A client contemplating a major home improvement project may be apprehensive about moving forward due to cost.
Even though your estimate is competitive, your rates fair, and previous customers have nothing but the highest of compliments on your work quality and ethic, that prospective client may still be undecided about hiring you to do the job.
The concerns of affordability are the main stalling point and when the client decides to wait, he or she is slowing the growth rate of your business. But when you offer financing programs through Fund My Contract, the client is given a range of choices for paying for your services. Payment in full at the time of conversion in one lump sum can be a barrier to conversion for many new and returning customers but with financing options available, the client doesn’t need to wait and neither does your business. Our network of third-party lenders can give your client the opportunity to participate in financing programs that offer lower monthly payments, extended financing terms, even limited-time promotional interest rates for clients who qualify to enjoy those perks.
You know your clients best, you know their spending habits and concerns when engaging with your business, that’s why you are best equipped to develop the most advantageous financing programs to offer to your clientele.
Maintain Healthier Profit Margins
Financing programs through Fund My Contract can reduce the number of price objections you encounter with customers. When you present an estimate on a project to your customer, there may be some hesitation on the part of the other party who might choose to refrain from moving ahead on the work.
A business owner worried about the financial condition of his or her business may then decide to lower the bid in an effort to get the gig and that can drastically affect the company’s bottom line.
Financing programs help make the cost more manageable and affordable, not only can you avoid dropping your prices and cutting into your profit margins, but the customer is more likely to increase the total of their spend with your business. They’ll be more willing to select the more expensive window model or go with the deluxe package over the base variants of the items and services that you are being contracted to provide because they don’t have to pay for it all right now in one large payment but many smaller installments instead, thus putting more money into your business.
Faster Growth
The quicker you generate revenue, the faster your business grows. A contractor who spends half of his or her time chasing after past due invoices and late payments isn’t growing their business at a sustainable rate.
But with Fund My Contract, you can accelerate your business growth by offering financing to customers who can manage their payments while your business gets paid in full upfront. No more past due invoices and chasing after late payments. Your customer chooses the financing program he or she wants to utilize to cover the cost of their home improvement project and the funds go right to your contracting company when the work starts. Once you’re paid in full, your responsibility is to complete the job you’ve been hired to perform. The customer makes their monthly payments to the lender as per the funding agreement.
Succeed in a Crowded Market
The marketplace is full of competition eager to attract customers. Contractors who specialize in home improvement projects are looking for ways to separate themselves from the rest of the crowd and financing options through Fund My Contract can help your business get a leg up on the competition.
How? Through closing more conversions by putting more spending power in the hands of your clientele. When your company offers financing programs and the other contractors in your area do not, you’re making it easier for customers to hire your services because they can space the cost out over low monthly payments instead of paying in full with your competitors.
Customer Satisfaction and Repeat Business
Customers who want to hire your services are sometimes left disappointed when they can’t afford to pay in full at the time those services are rendered. So they miss out on the home improvement projects they’ve always dreamed of completing.
But now with financing programs through Fund My Contract, your customers don’t have to go without because they have access to some of the best financing options in the industry and low monthly payments that makes the work more affordable to any monthly budget.
This fosters an increase in customer satisfaction that only benefits your business as new customers will read reviews of your business and feel more comfortable hiring you and trusting your company to do the work they need.
Happy customers are also repeat customers. They will recommend your business to friends, relatives, and colleagues, but also return to your business when they need new work and repairs performed on their homes.
Accelerate Business Growth with Fund My Contract
The time is now. Don’t let your customers go without the work they need or rack up thousands of dollars in credit card debt. Offering financing options can put your business on the road to success by meeting the needs of your customers and taking the guesswork out of payment, with predictable and easy to manage installments.
Reach out today, talk to one of our home improvement financing specialists about accelerating your business growth and giving your contracting company the competitive edge in a crowded region.
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