Emily Clarke

What is Customer Financing?

Whether you're a contractor who does it all or own a business that specializes in roofs or pools, offering financing options to your customers can make or break your success. Large home improvement projects are a substantial investment, and cost is a big barrier for potential customers. Many people will hold off on these projects because they can't afford them, leaving you with fewer customers to support your business.

Financing for home improvement customers is a way to boost business. It expands your reach and makes your services more accessible to everyone.

How Customer Financing Works

Customer financing is similar to getting a loan or credit card. Instead of paying for your services upfront, a client can split the cost over several years and make payments monthly. Think of it as offering an in-house loan to cover home improvement projects.

Like any other form of credit, getting financing requires approval. Typically, businesses will work with third-party lenders. That partnership is beneficial for all parties. You usually have an easier time getting funds, and customers work with a financial partner who already knows how to do business with you. It's a win-win.

When you offer financing for home improvement customers, you may connect people with those lenders directly. Or, you can create your own portal for customers to fill out applications. Those portals can offer pre-approval and give potential clients better insight into how much monthly payments will be.

If they decide to proceed, they can go through the full application process. That typically comes after you provide quotes or invoices. Because you're partnering with a lender to offer customer financing, the process is much smoother than working with an outside bank.

Why You Should Offer Customer Financing

The biggest reason to consider providing financing options is to get more jobs. The high costs of home improvement projects make many potential customers hesitant to take the plunge. With financing, those costs become more manageable.

It also makes your business more competitive. People are more likely to go with the contractor that offers financing versus one that doesn't.

Author Resource:-

Emily Clarke writes about sales and business automation tools for construction companies and contractors. You can find her thoughts at customer financing tool blog.