In the home improvement business too, wild cards are often the key to winning over a prospect.
Even with the recession being over, many homeowners are still hesitant to throw down thousands on a home improvement project. That, paired with the e-commerce revolution, has created an expectation of financing options just about everywhere.
That’s why you’ll want to keep a tiered financing wild card up your sleeve in the coming years – it could win you a whole pot of new customers.
Why Tiered Financing Works for Homeowners
It’s estimated over 50% of home improvement projects over $5,000 will require financing. Typically, contractors offer financing through prime lenders. This is great – if you have spotless credit. But, that isn’t going to be every homeowner. Not by a long shot.
If a homeowner doesn’t make the cut, it doesn’t mean they’re not credit-worthy. It just means don’t meet the rigorous standards. And if a competitor has more flexible financing plans, a prospect’s adoring eyes may wander.
You can hold onto that prospect by offering tiered financing. If their credit score isn’t high enough, you can refer them to a secondary tier that takes a more nuanced look at credit history. Think of it as sort of a safety net, offering a soft landing for homeowners with a few credit mishaps.
When you offer tiered financing, the homeowner will be more comfortable making big-ticket purchases. This is good news for everyone: you won’t have to compromise on prices, your sales team will get better commissions and your customers will love you for putting their home improvement dreams within reach.
Play Your Wild Card
By using tiered financing options, you can reach a vast and under served segment of the market: homeowners who are eager to commit to a large-scale project, but whose credit is slightly worn around the edges. If you already have one financing program in place, implementation is seamless.
Tiered financing isn’t a gamble – it’s a proven way to bring in more customers, drive higher profits and boost referrals. Companies like Foundation Finance Company and Genesis Financial Solutions help customers like yours every day.
So place your bets and play that wild card – winner takes all.