Common Myths About Home Improvement Financing
Customer financing has been shown to increase sales by removing the “sticker shock” of the expense of a significant home improvement project. When broken down into manageable monthly payments, a new roof or big kitchen makeover is now within reach of even the most frugal shoppers.
Because of the complexity and cost that these projects normally involve, the number of contractors offering client financing is limited and mostly restricted to large franchises. But that’s in the past, and today is full of fresh possibilities. If you are one of the many home improvement contractors who believe that giving financing alternatives to customers is out of reach or too complicated, then here are some common myths:
Myth #1: My customers don’t need financing
This is one of the most widespread misconceptions regarding financing options. The retailer’s potential target customer base has been reduced by not marketing and discussing finance, including near-prime credit and no-credit-check financing. But it’s vital to remember that even the most affluent clients want to make the best financial decision possible. A monthly charge to maintain your accessible funds rather than depleting your savings or discretionary funds might be a great motivator.
Myth #2: Customers will buy the same size project, even if they finance it
When you introduce flexible payment options, homeowners realize they not only have a way to pay for a project, but they may also have the funds to upgrade it, which translates to more or larger contracts for your company. Offering excellent home improvement loans allows you to focus on value rather than cost, allowing you to bring your creative vision to life and create happy clients.
Myth #3: Offering loans is harmful to your bottom line
Instead of requiring the consumer to travel to a bank or another lending institution to get a loan, you may provide payment choices through a preferred lending partner. Your consumers will appreciate being able to secure a loan quickly and conveniently in a smooth procedure that shortens your sales cycle.
Myth #4: Offering financing costs too much
Point-of-sale financing is like a credit card transaction, resulting in expensive transaction fees that can severely affect a contractor’s bottom line. However, not all client financing services include transaction costs, which means you may provide various forms of financing and incentive offers to your customers without having to spend extra money.
Myth #5: It’s uncomfortable to bring up finance options
Sometimes business owners believe offering to finance a service may upset a customer. “You don’t think I can afford it?” True, discussing money may be difficult. However, if you focus on what items the customer budgeted for and how financing can affect their final selection, you’ll often discover that financing helps your customer. In return, your customers can make smarter, long-term decisions to purchase an even better product or service. It’s all about how you deliver!
Myth #6: It’s too complicated to offer financing
Nonsense. Sure, there are lenders that make things excessively difficult, but a suitable partner can offer easy programs, quick choices, and dependable customer service. Finding a partner with the technological tools and expertise to generate a better client experience is crucial.
Myth #7: Financing ruins customer’s credit
You want to prioritize customer service as a business owner. This entails selecting financing options with your customer’s best interests in mind. Perhaps you’ve heard that consumer finance harms your customer’s credit however, this isn’t true. When using an installment loan, clients may improve their credit score by paying on time. Loan payments often aid in the improvement of your valued clients’ credit scores. Furthermore, for customers who do not have a long credit history, this can help them improve their credit score.
Ready to Get Started?
Establishing a partnership with a reputable lender makes excellent financial sense for any home improvement firm because providing payment choices has shown to help your company expand. As previously said, providing a variety of payment methods might make it easier for your clients to say “yes.” Contractors that provide payment choices may find higher closing rates, larger project sizes, and an increase in overall revenue.
Most of the myths around payment options are simply misconceptions. A quality lending partner will educate you on the best methods and possibilities for using finance to develop your business, bring in more leads, increase average project size, and increase your closing rate.
About Medallion Bank
We specialize in low monthly payments with customer-friendly loan terms., And deliver white-glove service and employ the best of modern technology to lend responsibly.
Our standard installment loans feature affordable monthly payments and competitive interest rates for your prime credit customers. Our programs are oriented toward:
- Competitive interest rates on loan amounts up to $75,000
- Low, affordable monthly payments to increase job sizes
- A mobile app, online, and call-in applications
- Friendly customer service from trained professionals
Through our simple, and easy non-prime loan process, we assist dealerships in closing more sales and serving more customers. We are dedicated to making sure that both you and your customers are always in good hands at Medallion Bank.
1100 East 6600 South
Salt Lake City, Utah 84121
1100 East 6600 South
Salt Lake City, Utah 84121