EnerBank Blog
Skip the Credit Cards, Use a Loan Instead
Posted March 21, 2022 by EnerBank USA

Skip the Credit Cards, Use a Loan Instead
Many in the home renovation industry feel they don’t have a need for a financing program because many of their customers are using credit cards. However, utilizing a payment options program from EnerBank USA for your business is a great way to establish credibility with consumers and increase awareness of your brand. Plus, it provides additional benefits for both you and the homeowner that you won’t find with a credit card.
Higher Approval Rates
Typically, 4 out of 5 customers are approved for an EnerBank USA loan, which means you can close more deals that you may not be able to otherwise. If a customer doesn’t qualify for the loan for which they applied, our Mobile Loan App may make an automated counteroffer that better fits their credit circumstances, unlike a credit card, so the customer can still receive the funding needed for their project.
Higher Lending Limits
EnerBank features a variety of loan products, some of which have limits of up to $75,000, which is higher than many credit cards. This allows customers to get their job started as soon as possible, without needing to compromise their vision using lower-cost materials or breaking the project up into parts to make things more affordable.
Fixed Interest Rates
Unlike credit cards that feature fluctuating rates or increases as penalties for late payments, our loans feature fixed rates. This means if the customer selects a loan with a low monthly payment option, they’ll have a single fixed payment, making it easier to incorporate it into their budget.
Same-As-Cash Options
One great benefit of offering EnerBank financing is that there are different loan options that you may not be able to find with credit cards, including same-as-cash options. With this type of loan, for example, the homeowner can hold on to their cash during the project and then pay it back later. If they pay within the set period, they won’t need to pay interest on the loan.
No Hidden Fees
With a credit card, there may be additional fees, such as annual fees or merchant processing fees, that are not applicable to our loans. EnerBank loans feature no hidden fees for both the contractor and the homeowner, you pay what we say you’ll pay. Plus, as the contractor, you can build your dealer fees into your operating overhead, helping you to save even more money.
As an added bonus, research* has shown that by offering payment options, contractors can:
Improve Cash Flow
A crucial part of your business is liquidity. EnerBank pays you directly and quickly, so you never need to worry about collecting from customers.
Increase Leads
You can see a 50% increase in leads (plus a better conversion rate) when you advertise a choice of payment options in your marketing materials and on your website
Boost Close Rate
Offering a choice of payment options can nearly double your close rate. For example: assuming a 25% baseline, you can increase your close rate to 44% when offering a Same-As-Cash loan and a low monthly payment loan.
Grow Average Project Size
More than one-third of homeowners regret not spending more on their projects to get the results they truly wanted. When using a payment option, homeowners spend 44% more on their home improvement projects, which means more business for you.
Eliminate Discounting
When your customer is paying cash or providing their own financing, you may feel you need to offer a discount to close a deal, eating into your margins. You can negate this by simply offering payment options.
Reduce Cancellations
Homeowners who are approved for an EnerBank loan are 94% more likely to complete the job with you.
*(Source: Brickyard Study commissioned by EnerBank USA, 2018)
Ready to get started with your own payment options program? Simply fill out the form on this page and a member of our team will get in touch with you soon.
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