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How Contractor Financing Can Be Used as a Selling Point

Apr 13, 2016
Jeff Lillie
Home Improvement Loan Pros

When you’re a contractor, one of the biggest challenges that you encounter is helping customers figure out how to pay for the services that you know they need. Whether it’s repairing their home or fixtures after serious storm damage or looking at ways to add upgrades to their current property, in order to complete the project many property owners will need some sort of building project financing. When you wonder why some businesses are really raking in the projects while others are struggling to get smaller jobs, contractor financing could be the differentiating factor.

Larger Tickets = More Profit

Working with homeowners can provide you and your team with solid profits, but the margins can be slimmer than you would like. One of the ways you can combat the rising costs of home improvement projects and the low amount that buyers are willing to pay is by offering contractor financing for a portion or all of the project cost. When you’re offering contractor financing, instead of looking at the overall cost of the project, you can instead offer a glimpse of the monthly payment amount—a tactic used and well-loved by car salespeople throughout the country.  

Better than Banks

When your customers are trying to work with a bank in order to get their financing for a home improvement project, they may get discouraged into thinking that they can only get approved for a very low dollar amount. If they are able to get contractor financing for their project, they are much more likely to be approved for a higher dollar amount, especially when they consider a low-cost financing alternative such as Home Improvment Loan Pros.  

Competitive Edge

With only a small percentage of contractors currently offering financing for their customers, smart business owners will use contractor financing as a selling point for their overall business. If their model is similar to other contractors in their area, with estimates that are comparable and a related level of quality, then the ability to offer contractor financing can make the difference between getting a sale and losing it to another business in the area.   Don’t let your customers head out the door and off to another contractor. Offer them the financing that they need to get their home improvement project done right the first time. When your customers feel limited to only cash and checks, they are not as likely to increase the overall size of their project. When they see how simple contractor financing with Home Improvement Loan Pros can be, they will be thrilled to work with your business.