Customer Financing for Remodeling Contractors
Posted July 5, 2022 by EnerBank USA
As a remodeling contractor, you’re expected to have the talent and resources to take on a renovation project and consistently deliver excellent results, often while juggling multiple other tasks at the same time.
Even with exceptional skills, it can still be a challenge to get the projects you need to grow your business. If you want to be a contractor who everybody loves and wants to work with, customer financing for remodeling contractors can give you the edge you need.
Customer financing for remodeling contractors works because it gives homeowners the choice to start their project right away, and allows you to continue to grow your home remodeling business. When you offer remodel financing through your renovation business, homeowners tend to spend more on their renovation projects to get what they truly want, which means more revenue for you.
The Benefits of Customer Financing
Customer financing is a winning situation for everyone involved. Here’s how:
Be the Better Choice
Not all homeowners may have upfront cash for home improvement projects. By providing flexible payment options to your customers, chances are, they’ll choose you over the competition. For homeowners, completing the projects they want with financing makes more sense.
Close More Deals
By offering Same-As-Cash Loans and low monthly payment loans, you can close more deals, faster. Homeowners are less likely to get bids from other contractors or compare quotes if they are able to be approved for a loan offered through you. In fact, 94%* of homeowners approved for a Regions and EnerBank loan complete the job with the contractor who offered it.
Grow Your Revenue
When your customers have payment options available to them, they may be able to increase the project size or ask for premium-grade materials to get the results they truly want. This will, in turn, benefit your business — as the average project size increases, so does your revenue.
Increase Bottom Line
More sales don’t necessarily translate to better profits, especially if you feel you have to offer discounts to cash-paying homeowners. Your customers may also choose to downgrade their initial home renovation plans by reducing the project’s scope or using lower-quality materials once they hear the bid. By offering payment options, you provide more ways for homeowners to pay for their projects, helping keep your margins strong.
Improve Cash Flow
As a business owner, you need cash flow to keep your business running ahead of your competitors. However, many home improvement projects get fully paid only when the project is completed, compromising your liquidity. Some customers may even stop halfway through a home renovation project because of a lack of funds.
With a financing provider like EnerBank, once your customer approves a funding request, you get paid fast, usually within 24 hours. And your customer knows their project is moving toward the finish line.
Find the Right Partner
As a contractor, your payment options will only be as good as the lending provider you work with. Customer financing for remodeling contractors lets you give homeowners more ways to pay for their project.
Why should remodeling contractors offer home renovation financing?
When you offer home renovation financing to your customers, you can get a step ahead of your competitors and provide what homeowners truly want: an easy and convenient way to pay for their projects. With home renovation financing, you can expect to start projects sooner, complete them faster, and — because your customer now has greater buying power — get paid more.
How can remodeling contractors offer home renovation financing?
As a remodeling contractor, your expertise is in, well… remodeling. So when it comes to offering home renovation financing, working with a home improvement lending expert like EnerBank USA is a must. You can offer your customers an attractive choice of payment options that can increase leads, boost your close rate, and grow your average project size.
What is it like working with EnerBank USA?
With Regions and EnerBank as your lending solution, your customers have three quick and easy paperless application methods: Mobile Loan App, Online Loan Application, and Loan-by-Phone. When your remodeling financing is powered by EnerBank, you can offer a wide choice of payment options to give your customers the convenience and flexibility they want. Plus, we handle the day-to-day needs of your financing program so you can focus on other aspects of your business.
Contact us today about starting your own loan program by filling out the contact form on this page!.
*Brickyard Study, 2018
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