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From a customer’s perspective: Why offering a choice of payment options increases referrals and project size.

Posted August 31, 2016 by EnerBank USA

Offering a choice of payment options is key in distinguishing your business and customer experience.

The days when customers paid with only cash and credit cards are long gone. Today’s most successful contractors provide their customers a choice. Offering Same-As-Cash financing and low monthly payment plans gives your customers freedom to spend and pay however they want on their home improvement projects.

Let’s take the following hypothetical situation that we see and hear about on a consistent basis.

Typical Referral Situation from Offering a Choice of Payment Options

You receive a call from a prospect who received a direct mail piece advertising your services and the availability of payment options. They are interested in remodeling their kitchen. They have a design and style as well as a budget in mind.  This is a great time to remind them about the choice of payment options. These payment options will be an important factor in your prospect’s decision to move forward on their dream kitchen project with you.

At the beginning of your sales consultation appointment, you once again remind them about the availability of Same-As-Cash and low monthly payment loan options.  This will neutralize any price objections later in the sales process. Then, you’ll mention this choice of payment options again when you present the project estimate and let the customer choose what works best.  In addition to closing the sale, there is another benefit—you likely won’t have to discount the price.

After you complete the project, the customer has family and friends over for a dinner party and to show off their new kitchen. They receive multiple compliments and someone asks who remodeled their kitchen because they are thinking about a remodel soon.  So, the customer gives them your contact information and tells them to ask you about the choice of payment options you offered to help them get the kitchen they really wanted.  Soon, you get a call from a motivated buyer from that referral.

Why It’s Hurting You By Not Offering A Choice Of Payment Options

According to Home Advisor, 75 percent of all home improvement projects over $2,500 are financed in some way. If you and/or your sales reps are not offering a choice of payment options to every customer, you are probably missing out on significantly increasing your sales.  Whether it’s a Same-As-Cash customer that does not want to part with their cash right now or one that needs low monthly payments,  providing a choice of payment options is a key factor in closing more sales and doing bigger projects.  Upfront, you will never know which payment option will work best for your customer.  That’s why the choice is so important.  Customers will likely select more expensive materials or equipment that they wanted all along.


As you can see, the benefits of offering a choice of payment options to every customer can be huge. You don’t want your potential customers relying on your competitors to provide them.  When you do so consistently, you’ll win a higher percentage of your project proposals that your customers really want.

There are no closing, appraisal or application fees, and credit decisions are quick.  As a home improvement contractor, you have no risk if a borrower defaults on a loan and there is no upfront contractor or customer application fee.

Contact EnerBank USA today if you are ready to start closing a lot more deals. It is easy to get started by clicking the button below to get more information.