Financing Tips Show Contractors The Way To Grow Their Business

Home improvement is an expensive yet inescapable task for homeowners. Renovation projects for kitchens, bathrooms, roof, flooring, etc. can cost thousands of dollars. Of course, this digit is hard to find in the bank savings because of which many owners turn to bank financing (a tedious task again!). To overcome this, many home improvement contractors have themselves started providing financing options to their customers. It allows homeowners to get both renovation and finance at one stop. Not only is Home Improvement Financing by contractors beneficial for their customers, but it also increases business revenues by many folds. Are you a contractor too? Scroll down to know how financing can help you grow your business as well.

Increased Audience

Financing can help home improvement businesses expand their target audience. Usually, contractors who do not offer finance have a limited audience that consists of homeowners who either have cash or enough equity to apply for HEL (Home Equity Loan) or HELOC (Home Equity Line of Credit). On the other hand, those who offer finance to prospective customers can target homeowners with insufficient cash or equity, but having an average or good credit rating.

People who do not have enough cash or equity also have the option of credit cards or unsecured loans. However, it’s not possible to cover big projects with credit cards, and unsecured loans can be expensive.

Contractors who do not offer home improvement financing stand the chance of losing both big projects and an audience that prefers contractor financing.

 

Up-selling

Upselling is another way by which home improvement businesses can grow through financing. For instance, as a contractor, if you offer your client a higher value project with the ease of access to additional funds, there are great chances of the decision turning in your favour. You can offer your clients some additions in the form of better material or suggest them to increase the area of improvement. It would be a win-win situation for both you and your client; they can enjoy the benefit of a luxurious renovation while you get more opportunities to work on high-value projects.

 

Marketing

If you’ve decided to add financing options to your business, then why not market it as well? Huge business houses are successfully using financing as a great marketing tool. You would notice high-value goods commercials (like cars) selling their products as easy monthly instalments, instead of the entire purchase value. Financing allows you to market your expensive services as affordable monthly payments. Doesn’t it sound like something you would like to invest in as well? You can apply this strategy to your home improvement business and increase your revenue by many folds.

 

Close deals & speed sales cycles

Contractors can also use financing options to close deals when they’re hot. When you are talking to an interested homeowner, that might be your only chance to be in their home and discuss the plan. Often, a discussion potential client ends up with them pushing off the project due to lack of funds. While your services are of prime importance, providing your client with easy finance can work as an additional benefit. If you look from your client’s perspective, searching for ideal home improvement loans is quite tedious. When you offer them everything at one stop, there are higher chances of the deal being closed fast and in your favour.

We’re sure that this read will help you figure out how to grab the many opportunities you might be losing otherwise. Are you looking for a reliable partner that can make financing a reality for your business?

Sign up with us today, and our experts will take you through your roadmap to success.