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Unlocking Growth: How Contractors Can Use Client Financing to Scale Their Business

In today’s competitive home improvement market, offering client financing can be a game-changer for contractors looking to scale their businesses. By providing flexible financing options through HFS Financial, contractors can not only increase their closing rate but also enhance customer satisfaction while increasing gross profit margins and building customer loyalty. Here’s a detailed guide on how contractors can utilize financing for their clients effectively.

1. Understand the Benefits of Offering Financing

Before integrating financing into your service offerings, it’s crucial to recognize the benefits it brings. Offering financing helps remove the financial barriers for your clients, making larger and more frequent projects feasible. It reduces the sticker shock of large projects and creates opportunity when affordability limits possibility. It also positions your business as a full-service solution, which can lead to increased marketability and the ability to attract a broader client base.

2. Partner with the Right Financial Institution

Quality partnerships are now the cornerstone to remodelers successfully navigating the challenges and an ever changing economic climate. Today, homeowners partner with your firm’s designers/consultants to help guide them with insight and experience. Insight is knowledge beyond the obvious. Partnering with the right financial institution like HFS Financial, is essential. With over 55 years of combined experience in home improvement lending, HFS Financial specializes in providing No Fee and straightforward financing solutions. Look for a partner that offers:

  • Quick and easy application processes
  • High approval rates
  • Competitive and affordable financing terms
  • Comprehensive support for both contractors and homeowners

3. Educate Your Team

Ensure that your sales and customer service teams are well-versed in the details of the financing options you offer and how they benefit the customer. They should be able to explain the benefits to potential clients and guide them through the initial steps of the financing application process. HFS Financial provides resources and training to help teams learn how to offer financing. Contractors who offer financing consistently sell more jobs with higher gross profit margins. Many customers may not realize financing is available or may hesitate to ask. Leading with good questions at the start of the estimates sets you up for success. Start by asking me – we can share easy and proven presentation techniques.

4. Integrate Financing Into Your Sales Process

Make financing a standard part of your sales conversations. Ask questions and listen closely. By discussing financing early in the sales process, you can address budget concerns upfront and help clients envision their projects more realistically. For example, when quoting a project, present a breakdown of monthly payment options alongside the total cost to show affordability through financing. Some of the most powerful words in a closing situation are “M/M Homeowner, you told me…”

5. Promote Financing Options Proactively

Leverage your marketing channels to inform potential and existing clients about the availability of financing options. Include information on your website, in brochures, and during initial client consultations. HFS Financial provides marketing materials and badges that you can use to promote your partnership and the financing options available. Increase deal capture by prominently displaying financing options on your website. Contact your HFS Financial Contractor Success Manager for resources such as “apply now” buttons and pre-written blurbs. Many customers will follow your link and get pre-qualified before you go visit. That is exclusively your lead.

6. Streamline the Application Process for Clients

Make the application process as simple and seamless as possible. HFS Financial offers an online application that can be completed in minutes on a laptop, tablet or phone. Provide customers with customized website links or fliers so they can easily apply for a loan with your company.You’ll receive notifications each step of the way. HFS Financial provides all those resources and more at No Charge!

7. Follow Up on Financing Leads

Keep track of clients who have expressed interest in financing but haven’t completed their applications. A follow-up call or email can help address any questions they might have and remind them of the benefits of proceeding with their planned projects.

8. Outsource

Let us sell the financing for you. Focus on selling the job while HFS’s experienced loan consultants handle the financing process. Keep HFS Financial Contractor Success Manager on speed dial: Have questions beyond loan email notifications? Save your account manager’s direct line for quick access to support and updates during customer interactions.

9. Measure and Adapt

Monitor how well financing is working to boost your business. Track metrics such as the increase in project size, number of new clients, and overall revenue growth attributable to financed projects. Use this data to refine your approach and offerings.

By effectively utilizing client financing, contractors can not only overcome the price objections but also provide a value-added service that differentiates them in the marketplace. Partnering with HFS Financial, which is dedicated to helping contractors grow their businesses through accessible client financing, positions your business for sustained growth and success in a competitive landscape.

Remind Customers of Soft Credit Checks: Assure customers that HFS Financial conducts only soft credit checks at application; these do not impact their credit score. This approach contrasts with other lenders’ hard credit checks, preserving customers’ creditworthiness and reducing the objection why they shouldn’t consider financing as an option – there is no downside to creating affordability.

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