When someone purchases a home or a car, it’s such a large expense that the purchaser usually uses financing. The same is true for most home improvement projects. Many projects cost the homeowner thousands of dollars, and sometimes they just don’t have that kind of cash lying around. Instead, a homeowner might turn to a credit card or a home equity line of credit. While these are some options that could work, there is an option that can be better for the customer, and better for your business.
How Financing is a Benefit to Both Parties
As a contractor, it’s your job to provide quality workmanship to your customers, but when you also offer financing for that work, it expands opportunities for both parties. The following are some benefits you’ll probably see:
- Increased Revenue – Perhaps the most beneficial result of offering financing is seeing an increase in revenue. In a survey of remodelers, some who offered financing saw their revenue increase as much as 60%. This is because when financing is on the table, the customer is more focused on their monthly payment, rather than the total price. This can help them feel more confident in affording higher quality materials/products, additional work, and sometimes, a complete rather than just a partial job.
- Advantage Over the Competition – If someone can go to a contractor and receive both a high-quality job and financing, they are more likely to hire that contractor. If they must obtain financing elsewhere, they might look for some other options that may not include using your company. Offering financing to your customers gives you a huge advantage over the competition.
Your business isn’t the only party that benefits with financing. When your customers have this option, they are more satisfied with your work overall because they can get what they really need. Instead of paying those high-interest rates, they have financing solutions they can afford. This can sometimes include plans with no money down and no payments for a period or plans that allow for interest-free financing if paid off in six months or a year. If they have already done business with you in the past, they know they can rely on the options you’re offering. When all is said and done, your customers can enjoy a beautiful remodel now, without the stress of emptying their pockets.
Getting Started with Financing Options
To learn more about the financing options you can offer your customers, contact NAPAC by calling 267-214-6229 or emailing us today. NAPAC negotiates special rates and plans by leveraging the financing used by all our members. We look forward to helping you find more success for your business and your customers.