Misconception #1 – Common Contractor Misconceptions
Here at Regions | EnerBank USA, we work with a lot of contractors – over 8,000 of them, in fact. This means that in the over two decades we’ve been in this business, we’ve heard a lot of misconceptions when it comes to contractor financing. In this blog series, we’re going to take a closer look at some of the most common myths we hear from contractors and help debunk them:
Misconception #1 — Customers Pay in Cash and Don’t Need Contractor Financing
Misconception #2 — Contractor Financing Hurts my Bottom Line
Misconception #3 — Offering Contractor Financing is Awkward & Tricky
Misconception #4 — Only Offer Contractor Financing to Save a Sale
Misconception #5 — All Contractor Financing Options Are Created Equal
To kick things off, we’ll start with our first common misconception:
Misconception #1 – Customers Pay in Cash and Don’t Need Financing
Many contractors say they don’t offer financing because most of their customers are paying in cash. However, the data shows otherwise. Research shows that over 55% of home improvement projects use some type of financing*. By offering payment options to your customers, you establish yourself as their problem solver – increasing the likelihood that they’ll choose you for their project.
By not offering financing, you may be missing out on opportunities and leaving money on the table. You know your customers want convenience and ease when it comes to their project, and what’s easier than a contractor who offers financing as a part of their services?
Even for customers who were planning on paying cash, the flexibility of using contractor financing is an appealing option. After all, one of our most popular products is our Same-As-Cash loan for a reason. This loan allows your customer to complete their project now while holding onto their cash. It’s also an appealing option for those waiting for cash to come in, such as a tax refund or investment. When this loan is paid back in full within the “same-as-cash” period, the interest is waived.
Now that you know why your customers are using payment options, why not try them out for yourself? Visit our website to start the sign-up process today!
*HIRI TFG Monthly report, released October 2023