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What Are Same-As-Cash Loans?

Posted January 18, 2019 by EnerBank USA

There are a lot of different loans out there. Even for those within the lending industry, it’s easy to lose track of the assortment of different industry-specific loans. If you’re unfamiliar with “Same-As-Cash Loans,” or aren’t sure exactly what the term means, we can help. By the end of this blog post, you’ll know everything there is to know about these types of loans.

What Are Same-As-Cash Loans?

A true Same-As-Cash Loan is a short-term lending solution that requires no interest or monthly payments during a set period. Then, by the end of this predetermined period, the loan is paid off. This means the customer pays the same amount on the loan they would have paid up front with cash. The only difference? They had the advantage of keeping their cash on hand longer.

If the loan is not paid off during the same-as-cash period, interest will be owed.

Who Benefits From This Type of Loan?

Same-As-Cash Loans work best for customers who have cash on hand, need temporary financing while waiting for a rebate, bonus, or incentive payment, or those who have investments they don’t wish to liquidate.

Same-As-Cash Loans also work well for customers who need to obtain financing quickly for big-ticket purchases. This includes furniture, recreational vehicles, expensive electronics, or home improvements, and don’t want the hassle of a lengthy approval process or need for collateral. In the home improvement industry, these loans can be offered by contractors, allowing the customer to avoid the need to search for funding on their own.

Who Shouldn’t Use Same-As-Cash Loans?

Same-As-Cash Loans don’t work well for customers who need to make monthly payments, want a longer-term loan to reduce the amount of their payments, or don’t have access to cash to pay off a loan in a lump sum.

Why Offer Same-As-Cash Loans?

You might be wondering why it’s important to offer a Same-As-Cash Loan as an option to all of your customers. Especially to those who tell you they’re planning on paying cash for their project. It’s a fair question, and there’s a good answer for it.

Customers pay in many different ways. Even if they’re paying in cash, that money could actually be coming from other sources. This includes cashing out a CD, liquidating stocks, a home equity line of credit, or by dipping into other assets with steep penalties, tax implications, or other costs.

The fact is, half of all home improvements over $5,000 use some type of financing*. Offering your customer a choice of financing options not only educates them about other potential ways to pay for their project, but it gives them the opportunity to make their own decision about the payment option that works best for them. This allows them to choose the project they really want.


So, if you’re a home improvement contractor and want to offer your customers financing like Same-As-Cash Loans, fill out the form on this page. A member of our team will contact you and help guide you through setting up a financing program that meets that specific needs of your business. Let Regions | EnerBank help to make loans simple for you and your customers!

*The Bain Report, 2016

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