Why Offer a White-Label Loan Program?
Posted March 26, 2021 by EnerBank USA
Why Manufacturers and Other Trade Organizations Should Choose to Partner with a Bank for Sponsored Payment Options Programs
A white label loan program is a loan program operated by a finance partner, but with your company name and branding facing your dealers and their customers. It lets you, as the program sponsor, offer your dealer network a powerful finance tool to grow their businesses, while a specialized bank does the behind-the-scenes work for you while making you look great.
Benefits of White Label Loans
Although offering any type of home improvement financing program for your dealer network is a step in the right direction, a white label loan program can bring the greatest benefits to your organization. Those benefits can vary, depending on whether you’re a product manufacturer or a trade organization, and you’ll understand which apply best to you.
1. Program Control
Some financial companies only offer what’s called a managed program, which means the lender controls which dealers can join your program, and often have strict requirements that limit the contractors that can join the program. But you know your dealer network better than anyone else, and need the flexibility to be able to let the right contractors into your program and give your network access to great benefits. You can even get more granular and decide which participants have access to specific loan products — it’s all up to you.
2. So Much for So Little
A major advantage of sponsoring your own white label payment solution is that you don’t have to spend your own organization’s time and resources on developing a similar solution in-house from scratch. An established program, branded and tailored to you, lets you focus on your core products and services, improvement of the customer experience, growth strategies, and more, while the bank does the work for the loan program. Not only that, but a white label program comes at no cost, while offering a ton of customization services, role-specific training, and branded marketing resources.
3. Boost Brand Affinity
Creating a recognizable brand is essential to the success of any business, and having a white-label loan program can achieve that on two fronts. First, it will encourage contractors to spec your products when they know they’ll gain the advantages of your loan program to help close more and larger sales — it’s a meaningful value-add to their membership in your program. Second, it will increase that brand recognition with your customer base. They won’t have to look to another company for their financing needs; instead, they’ll associate their financing with your business, seeing it as one more way you make it easy to buy your products. When you create a loan program with a trusted finance partner and your name is front-and-center, your brand is amplified as the only name your dealers and their customers need to know.
4. Enhance Customer Experience
When you fold your financial partner’s strong customer focus right into your own by creating a white label loan program, you strengthen the idea that your financial offerings belong to you, and are not from a third-party vendor. Integrating the loan as part of your sales process, with your brand name, helps the customer avoid that feeling of being handed off to another company. This is a great benefit for any company that wants to be known as an industry leader who offers a full array of relevant products and services.
5. Become More Profitable
Remember, any type of home improvement financing can help you improve your bottom line, and a white label loan program can get you to the next level of profitability. As your program helps you attract and retain more dealers, boost sales, and create more brand awareness, your profits are likely to increase. Such a boost represents a great return on investment, because pairing with a strong lending partner has very little costs, with a huge opportunity to increase business volume.
Get Started Building a White Label Loan Program Today
Now that you know why white label loan programs are excellent options among home improvement financing products for dealers, do you think your company should create your own? This is a great step to take for any organization with a network of contractors or dealers who are ready to grow more quickly. Offering your own financing will make your dealer network happier, and in turn your business will flourish. You can learn more about getting started by filling out the contact form on this page
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