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Why Approval Rates Matter

When one of your dealers is closing a deal and the homeowner has opted for one of the loan options they’ve offered — whether it’s a same-as-cash loan or a low monthly payment option — the key is that the customer gets approved for the loan...or it can all fall apart.

Approval rates for home improvement loans matter.

But, now more than ever, approval rates really matter. With the recent economic downturn related to COVID-19, some finance companies have been turning down more home improvement loans, leaving contractors and their customers high and dry. Not only that, but contractors are finding that they’re being removed from some lenders’ loan programs, leading home improvement professionals to correctly conclude that they were not working with a stable and secure banking partner.

Frankly, that sucks.

But what about EnerBank USA? Well, it’s a different picture here. Our approval rates have remained high and steady. We understand the economy is facing serious difficulties, but we’re not fazed, because we’ve weathered other serious downturns before, and because we’re a member FDIC balance-sheet lender. That means we’re carefully regulated and we fund our own loans. That puts us in the driver’s seat and puts contractors in good hands.

Unlike other companies that rely on third-parties to fund their commitments, at EnerBank we create our own loan criteria, so we can put our own money where our mouth is. Since we don’t answer to outside investors, we can be upfront and consistent with pricing, and form a true partnership with our program sponsors to optimize and tailor their loan programs.

How do you know you’re working with a bank that can weather the storms and keep on providing a high level of service and great approval rates? Here are three things to look for:

1. Credibility — You may be setting yourself up for failure if you’re dealing with a “finance company” that isn’t really a bank, a fintech outfit that merely acts as a go-between, rather than independently holding the capital on hand to fund your customers’ home improvement projects. Make sure you partner with an actual regulated bank that is FDIC-insured and well-capitalized. EnerBank has been providing home improvement loans for two decades and will be here for you now and in the future.

2. Specialization — While some organizations may focus on home improvement, none are as committed as EnerBank. Home improvement funding is all we do, so we’ve invested in developing home improvement industry specific tools, resources, and support — such as a dedicated relationship manager who knows and understands your business — as well as contractor-centric tools and processes that make for a smoother and more efficient transaction. We also have designed a significant variety of home improvement specific loan products to make sure your customers can choose just the right loan for their needs.

3. Track record — EnerBank’s historic approval rates show that we’ve remained strong and steady, no matter what the economy may be doing. Rates vary depending on the loan type, but on average, nearly 4 out of 5 homeowners who apply for a loan with us are approved. And the application is quick and easy, using one of our three paperless application methods to receive an approval in minutes. Not only that, but we offer an integrated counteroffer, so that an initial denial can still end up as an approval, with no additional application needed!


Don’t let those other guys keep your customers from getting what they want, and don’t let them stunt the growth of your business. Now is the time to make sure you’re working with a strong lender who’s a real bank and who continues to provide unbeatable approval rates!

To learn more, just fill out the form to the right, and we’ll get in contact with you!



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Wednesday, October 28 2020

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