In today’s competitive home improvement business landscape, offering customer financing can be a game-changer for your company. This form of credit enables customers to purchase your products or services on a payment plan, boosting sales and fostering customer loyalty. But how do you know if your home improvement company is ready to take this leap? Here are eight signs that your home improvement organization is prepared to offer customer financing and take your business to the next level.
You’ve Invested in Marketing and Sales Efforts
If your company has been investing in marketing and sales efforts to increase your brand’s visibility, it may be time to introduce customer financing. This type of financing will allow you to capitalize on the increased interest generated by your marketing and sales campaigns, translating into higher sales volumes and revenue.
You Have Business Growth Goals
Ambitious growth goals are vital for any company looking to expand and thrive. If your home improvement organization has clear objectives for the future, offering customer financing can be an essential part of your growth strategy. By providing payment plans, you’ll attract new customers who may have previously been unable to afford your products or services. This will help you achieve your growth targets and secure a solid footing in your industry.
Your Existing Market is Saturated
When your existing market is saturated and you’re struggling to find new customers, customer financing can help you break through this barrier. By offering financing options, you can appeal to a broader range of potential clients, including those with different financial situations. This can increase market share and help you establish a stronger presence.
You Need a Leg Up on the Competition
In a competitive market, you need to differentiate your business to stand out from the crowd. Customer financing can give you that competitive edge, demonstrating your commitment to meeting customers’ needs.
You’re Losing Bids Due to Cost
If your company is losing bids to competitors because of cost, customer financing can solve this problem. Offering flexible payment plans can make your products and services more accessible to clients who may be hesitant or can’t afford to make a significant upfront investment. This can help you win more bids and improve your bottom line.
You’ve Been in Business for More Than 2 Years
Experience and stability are essential factors when considering customer financing. If your company has been in business for at least two years, it demonstrates that you have a track record of success and the ability to navigate the ups and downs of your industry. As a result, lenders will view your company as a lower risk, making it easier to secure your customers’ financing.
You Have Stable and Consistent Annual Revenue
Lenders want to see that your company has a stable and consistent revenue stream before providing financing options to your customers. This reassures them that you’re a reliable and financially healthy business. If your company has a proven history of generating consistent annual revenue, it’s a vital sign that you’re ready to offer customer financing.
Your Services Speak for Themselves
A strong reputation for delivering exceptional products and services is crucial when offering customer financing. Positive reviews on platforms like the Better Business Bureau (BBB) and glowing customer testimonials prove your company is committed to customer satisfaction. This will make lenders more confident in partnering with your business to provide financing options, and customers will feel more secure knowing they’re working with a trustworthy company.
Think you’re ready to offer customer financing?
Partner Forward with Salal Dealer Direct
We team up with contractors nationwide to provide their customers with affordable financing for various solar and home improvement projects.
We can offer some of the most competitive rates and dealer fees because we’re part of a member-owned credit union. That means our profits return to our members—and business partners—through lower rates and fewer fees.
Our Dealer Direct Financing programs feature:
- An online loan application with fast credit decisions and a high approval rate.
- Terms and loan amounts are available to fit various budgets and project sizes.
- Partners pay ZERO dealer fees on our standard program.
How to Start Offering Salal Dealer Financing to Customers
We’re serious about helping your business grow with fast funding times and personalized support from a dedicated and experienced team of lending specialists. To get started, our dealer application process requires these documents:
- Completed dealer questionnaire
- Current income statement and balance sheet
- Copy of business license and/or contractor’s license