3 ways offering financing helps you close customers

3 ways offering financing helps you close customers

The home improvement industry is heating up.

According to HomeAdvisor’s True Cost Report, American homeowners spent 60% more on home improvement projects in 2017 (almost $2,000 more, in fact) than they did in 2016, and about two-thirds of them expect to spend even more in 2018.

How can you make sure you’re the one closing these customers?

Some contractors may lowball their bids to turn more estimates into actual projects. This strategy can cut into your profit margins, and some customers may not trust estimates that seem too low.

But if you don’t want to lowball your bids, you still need a way to close more customers.

That’s where offering financing comes in. It’s how you close deals without cutting prices too much.

Not convinced? Here are three reasons offering financing could help you close more deals.

Help customers start urgent projects now

Most customers prefer to pay cash for their home repairs. Sometimes, however, that’s just not possible—homeowners may not be able to wait to save cash for a leaking roof or damaged bathroom.

In those situations, a contractor who can arrange financing quickly for his customers has a leg up over the competition in winning the contract.

Picture this: A homeowner has a leaky roof in need of immediate repair. She gets bids from two companies—yours and your competitor’s. Your competitor gives him a bid and says he’ll start work as soon as the customer can get the required cash.

You, on the other hand, submit a bid with an offer to help arrange financing and begin work as soon as the customer is approved—in as few as 24 hours.

Is there any doubt which company seems more professional? Or which company the customer is most likely to choose?

Help customers realize their full vision

Imagine a customer who wants a $50,000 kitchen remodel on a $25,000 budget?

You could meet with her and show her ways to cut corners—less expensive materials, fewer custom cabinets, no pricey appliance upgrades—to get her within her $25,000 cash budget.

Or you could help her bring her dream kitchen to life with a $25,000 home improvement loan to make up the difference between what she has and what she wants.

It’s a win-win for both you and your customer. She gets the kitchen she really desires—one she’ll be happy with for years to come and that will win you rave reviews when the job is done.

And you get more profit and a better bottom line.

Reduce sticker shock

Has this ever happened to you?

You sit down with a couple who wants to finish their basement. They have big plans for all this new living space—a game room/home theater combo with a bar. Sounds like the perfect project for your company, right? Until they mention their budget—which would only cover about half of the work they’d like you to do. You could write up an estimate with the total amount due in cash from the customer, a bottom-line figure that’s bound to send them into shock and running for the door. Or you could write up the same estimate with the cash portion well within the customer’s range—and the difference covered by financing you’ll help them arrange. That bottom-line figure doesn’t seem quite so intimidating anymore, because it’s not coming out of the customer’s pocket. And you’ve made it easy for them to sign a contract with you to get the work done. Why would they go anywhere else to look for a lower price when you’ve put it all within reach—virtually on the spot?

Hearth makes financing easy for you and homeowners

When you partner with Hearth, your customers can receive personalized loan options in 60 seconds without affecting their credit scores. We show your customers loan options from several partners to help them find great deals.

Our lending partners approve loans of up to $35,000 for qualified customers, which make even high-end repair and remodeling projects possible.

The approval process is simple—your customers only need good credit and proof of income to close the loan.

Want to know more about how Hearth helps you close more deals with contractor financing? Get in touch today at hello@gethearth.com.