COVID-19 has everyone in their house more, and many people are now wanting to remodel their home. However, they may not necessarily have the money on hand to do so. Help your business and your customers by offering financing. Financing allows customers to spread out their payments for their home remodel, making it more affordable, so they can follow through with their home dreams. To get started, check out our quick guide on how to offer financing for your home remodel customers.
Decide What Kind of Financing You Want to Offer
When you’re learning how to offer financing for your home remodel customers, the first step is deciding what kind of financing you want to offer. Typically there are two options: offering financing yourself or using a third party company.
If you want to offer financing yourself, you can work out an agreement with customers where they pay in installments. However, this will put the work on you to manage these installment plans and make sure you get paid on time. You’ll also have to deal with any issues if a customer fails to pay.
On the other hand, you can use a third party company — someone who knows all the ins and outs of the financing industry. This company will manage all of the financing for you so you don’t have to worry about customers making payments. In addition, you’ll get all the money from the company up front, so your customer is getting a more manageable payment option and your cash flow is improved.
Advertise Your Financing
Once you choose your financing option, you need to advertise your financing. You can advertise your financing on social media and your website, or any other way you advertise your business. This is an important step in offering financing because it will be a selling point for potential customers. As mentioned, not everyone has the money for paying for the home remodel up front. A lot of people also don’t want to go through the hassle of finding a loan themselves, so offering financing makes that process easier for them.
Implementing Financing
Once you’ve chosen your financing option and have begun advertising, you may start having customers who want to use the financing option. Implementing financing is easy.
For your home remodel business, you will want to begin this process when you discuss payment before the remodel begins. This process is similar whether you choose to finance yourself or use a third party company.
- The customer indicates they want financing.
- The customer fills out a questionnaire so either you or the third party company can check their credit and risk.
- A loan offer is made if the customer is eligible.
- The customer accepts the loan.
- You receive the first payment from the customer or the third party company.
Choose a Safe Financing Option
Take the work and the risk off of yourself and partner with HFS Financial. At HFS Financial we have years of experience, so you know you’re in good hands. We will fit your customers with the right loan for them after they fill out a 60-second application. Get started by calling us today at 1-800-254-9570. “You Dream It, We Finance It.”