Home Improvement Financing – Tackling the Assumptions
Many contractors may be unsure of the best ways to bring home improvement financing into their sales strategy and customer conversations. If you have ever had your own questions or skepticism, you’re not alone! Home improvement business owners with long-term success in their industry may be unaware that home improvement financing has become the new standard or that they could experience further success by offering home improvement financing. Becoming knowledgeable about home improvement financing and making the decision to implement loan options for your customers can help your home improvement business’s sales soar. Let’s tackle some common assumptions about financing in the home improvement world.
“I need to be an expert to offer financing in my home improvement business.”
Fortunately, you do not need to be a financial expert to offer financing to your customers. When you partner with a reputable financing business that guides you through each step of their program, you can feel prepared to offer your customers financing options on the spot. With proper training and support, embedding financing into your sales process can be a breeze. Our team at Watercress Financial has members who have had hands-on experience with home improvement financing in their own businesses. Ryan Cox, Assistant VP at Watercress Financial, acquired years of HVAC business ownership and experience with many financing lenders before joining our team. “Don’t let financing confuse you. It’s very simple,” Ryan says in an interview when asked to share advice to contractors who are new to offering financing.
Scott Stiglich, Senior VP at Watercress Financial, discusses how contractors can overcome their mindset to accept financing during an interview with Roofing Contractor:
“Selecting an appropriate finance partner is also vital. This partner should provide an intuitive platform that makes it easy for roofers to present finance options to homeowners, ensuring a smooth transition from the sales proposal to the credit application and then prompt funding of the contractor upon project completion.”
“The majority of my customers don’t need a home improvement loan.”
One of the assumptions contractors should strive to avoid is assuming that their customers don’t need financing. Outward appearances and the presence of expensive assets are not always true depictions of wealth. A consumer may be in severe debt to maintain their lifestyle and simply not have a savings account to lean on during unplanned expenses.
Scott Stiglich attests to this fact during his interview with Roofing Contractor:
“Wealth is not always readily available for spending. Homeowners may prefer financing to manage their cash flow better, retain liquidity for unforeseen expenses or investments, or simply prefer the flexibility that financing offers. Contractors should consistently offer financing options to all customers, ensuring an unbiased approach that respects each homeowner’s individual financial strategies.”
Just because you don’t think your customer would need financing doesn’t mean they wouldn’t prefer to take advantage of a loan’s financial flexibility. During a recent interview, Ryan describes the presence of a home improvement loan as a breath of fresh air to homeowners. When financing is offered, your customer may also feel more comfortable spending more on a project and, in turn, be more satisfied with the project outcome in the long run.
“My customer has home insurance which will cover their home improvement project.”
An increasing amount of home insurance policies are decreasing their coverage for home projects, specifically for roofing repairs and replacements due to weather and storm damage. Your customer may mention they have home insurance but be unaware of the rising insurance deductibles that many policies are implementing.
When asked why offering financing is becoming more prevalent during his Roofing Contractor interview, Scott answers,
“The rise in insurance deductibles has placed significant financial strain on homeowners, necessitating alternative payment methods for essential roof repairs and replacements. In an era of economic uncertainty, consumers are increasingly hesitant to deplete their savings on home improvements, highlighting the need for financing solutions that alleviate immediate financial burdens.“
When you approach a project with financing, you can be the calm in your customer’s storm. With flexible payment options, you have the advantage of having your customers back when their insurance policies are unable to provide financial relief.
It’s never too late to learn more about how to offer financing effectively and its potential benefits for your business. Adding to your sales strategy can seem intimidating, but it doesn’t have to be with the right financing partner. If you’re interested in learning more about home improvement financing and what Watercress Financial can do for your business, our team is ready to connect with you! https://watercressgroup.com/contact/