Give Customers What They Want: Payment Options
“My customers have always used cash to pay for their projects.”
“Homeowners I work with usually apply for a HELOC after speaking to me.”
“I’m not sure how my customer is paying for their project.”
If you’ve ever said or thought one of these statements, or something similar, this blog post is for you. Research shows that 50% of jobs with a $5,000+ price tag are financed in some way†. Not making payment options a part of your sales process could possibly mean missing out on jobs and losing money. Here are the top four reasons why your customers want payment options.
An Easier Option
A third of homeowners don’t know how to pay for a project until after speaking to a contractor.⁰ That means that once they hear your initial bid, their mind may start working out how to pay for the work on their home, or they decide not to move forward at all. This is where you can immediately follow up your bid with a variety of loan options that your customer can apply for and receive a decision on while you’re still in the home.
Not everyone has the cash on hand that they need to complete a home improvement project, and other forms of financing may require a homeowner to wait longer or use their home as collateral. With payment options, you provide a suitable option that fits the unique needs of your customers.
For example, our Same-As-Cash Loan is an attractive option for many homeowners, including those who were initially planning on paying with cash. Why? Because it provides them with the flexibility to hold onto their cash for longer or wait for additional funds to come in, such as a tax refund, while they start their project now. Plus, when paid off within the same-as-cash period, interest is waived, and no monthly payments are required.*
Greater Spending Power
Many customers may underestimate how much a job is going to cost, and once they hear your bid, they may downscale their project or decide to use lower-quality materials to save money. However, when offered convenient payment options, their dream project is within reach, and it gives them the ability to increase their project size.
Let’s say you’re a painter and a homeowner needs a bid for painting their living room. Once there, you show them your available loan options. Suddenly, adding the kitchen and the primary bedroom to the job becomes a realistic possibility. Not only will this provide a better experience for homeowners, but it can better help protect your margins.
It would be great if there was a one-size-fits-all solution for financing. However, with so many unique financial situations, having different types of loans available is vital to your success. EnerBank USA offers different types of loans to fit both the needs of your customer and the type of project. On geothermal projects, for example, your customer may want to take advantage of our Triple Option Loan.
The loans we have include our Same-As-Cash, Reduced Interest, Zero Interest, Traditional Installment, Triple Option, and our integrated counter offers for your less-creditworthy customers.
Ready to Get Started?
Hopefully, you now see the benefit in offering payment options. Benefits that make life better for your customers and for you as the contractor. If you’d like to learn more or are ready to enroll in your own loan program, fill out the form on the right-hand side of this page or visit our website.
*terms may vary depending on the specific loan product
†Bain Report, 2016
⁰Brickyard Study, 2018
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