Offering Financing to Homeowners: How & Why It Matters
Posted April 18, 2022 by EnerBank USA
Many of your customers may have traditionally paid for their projects using home equity lines of credit, credit cards, or cash. However, with the home improvement industry ever evolving, more and more homeowners are looking for the ease and convenience that payment options can provide when it comes to completing their renovation projects.
According to the Brickyard Study,* 44% of customers are planning on using some type of financing for projects that are $5,000 or more. This provides a great opportunity for you to close more deals by offering the ultimate solution that homeowners need — an easy way to pay for the job.
Provides Greater Flexibility
Even for customers who were planning on paying in cash, using a loan gives them more freedom and convenience. For example, with a same-as-cash loan, customers can hold onto their cash during the project, giving them more freedom without having it tied up in their project. As long as the loan is paid off before the end of the same-as-cash period, the interest is waived.
Higher Lending Limits
EnerBank features a variety of loan products, some of which feature limits of up to $75,000. This lets your customers get the project they want without needing to compromise their vision by using lower-cost/quality materials or delaying parts of their project to make things more affordable — allowing for contractor margins to stay strong.
Offers More Convenience
Unlike a home equity line of credit (HELOC), our loans are unsecured, which means customers don’t need to use their home as collateral when using your payment options. Compared to other types of financing, EnerBank offers a high approval rate (typically 4 out 5 applicants are approved) and the paperless application process is quick, with credit decisions usually coming while the contractor is still in the home. This means less waiting around for paperwork, and getting to work sooner.
Plus, it’s been shown that contractors who offer payment options to every customer can improve their cash flow, increase leads, boost close rate, grow average project size, eliminate discounting, and reduce cancellations.
Don’t wait another minute to add this powerful tool to your business. Fill out the form on this page, and a member of our team will reach out with more information.
*Brickyard Study, 2018
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