Why Every General Contractor Should Consider Offering Financing
How many times have you had a potential client start to get nervous when you begin talking money? How many times have you wished that you could help make their nerves go away? You can when you offer financing. Financing is a great way for clients to make their dreams come true. Here’s why every general contractor should consider offering financing.
Close More Deals
With financing, you’ll close more deals and get bigger projects. Studies show that you’re likely to close 18% more projects and increase job sizes by 30% if you offer financing. This is because with financing, the customer’s large dreams seem more affordable and more of a reality.
Without financing, your clients may have to make concessions. For example, they may have to choose to complete the project in phases, choose only parts of the project, or not complete it at all. They may also have to choose cheaper products instead of the ones they really want. Offering financing makes the decision to fully complete their dream easier for them.
Get Paid Sooner
Have you set up payment plans with clients in the past? While this helps your clients, it may put more strain on your business since you don’t have all of the money for the project up front. Offering financing is a great way to help your cash flow.
With financing, the client will have the money to pay you sooner. Depending on the lender, you may get the full payment in as soon as a few business days. You’ll also be guaranteed payment; if the client defaults on their loan, the lender has to deal with it, not you. It’ll take some of the money-related stress of your business off your shoulders.
Attract and Retain More Clients
Potential clients are more likely to use your contracting business if you offer financing. No one wants to go through the effort of finding financing on their own. When you decide to offer financing, make sure to post about it on social media and add the information to your website. This lets potential clients know that you offer financing and will bring business in.
You’re also more likely to have repeat clients with financing. When they know you offer easy financing options, they’ll use your business for future projects as well. They may even refer friends and family to you. It’s a win-win-win!
Start Offering Financing Today
Now that you know why every general contractor should consider offering financing, HFS Financial is here to help you take the next step.
No one makes offering financing easier than HFS Financial. When you partner with HFS Financial, we do all the work. All you have to do is let your clients know you’ve partnered with us, they fill out our 60-second application, and we handle the rest.
We’ll help fit your client with the right loan for them so you can start working on their dream. Take the first step to offer financing today by calling 1-800-254-9560. “You Dream It, We Finance It.”
