Stage Funding for Home Improvements Explained

stage funding inspection

Are you a contractor looking into your options for offering customers home improvement financing and have come across the term “stage funding”? If you are currently considering how you can offer customers financing, it’s probably because you see how doing so can help you take your business to the next level.

After all, it’s inevitable that you’ll lose some clients to your competitors when they have to leave your site to seek funding elsewhere.  If you’ve checked out our website much, you might have also noticed the phrase, “No Stage Funding.” You might even be wondering what even is “stage funding” and “no stage funding”.

What Exactly is Stage Funding? 

With certain types of home improvement and construction loans, stage funding is common. That means that your customer’s lender will only pay for the project in stages. As the contractor, you would have to complete stage one before they will release the funds for stage two, etc. As you probably guessed, the lender will want to verify each stage is complete before releasing more funds. They will send someone to inspect the work, or you’ll need to submit pictures or a certificate of completion.

Additionally, the lender may want proof that the homeowner’s chosen contractor is “qualified” before approving the project. 

Clearly, stage funding isn’t ideal for either you or the homeowner. For you, it can cause complications and delays — including delays in payment. From the homeowner’s perspective, stage funding loans are complicated and time consuming.

Why Customers Should Get a Loan for Their Home Improvement

After finding out about stage funding, a homeowner might be wondering, “Is it even worth it for me to get a loan?” The answer is yes. Some people use a credit card instead of a home improvement loan because their contractor isn’t offering them a loan, and they don’t want to go through the hassle of getting a loan themselves on their own. But this isn’t good for either the contractor or the homeowner.

If a customer sees that it’s more expensive or more complicated to pay for their home improvement because they’re using a credit card or paying cash instead of a loan, they might even decide not to go through with the renovation at all. Additionally, most, if not all, of your competitors might not even be offering home improvement loans. By offering a home improvement loan, and particularly one with no stage funding, you’ll be at an advantage.

It will make your customers happy, boost your image, and help you gain even more new customers. And as a contractor, why wouldn’t you want to get more customers while keeping your current customers pleased with your services? Of course, you might be wondering how you can offer loans with zero stage funding — especially if you’ve never even looked into offering your clients a loan before. Here’s where HFS comes in.

So, What Can You Do?

We have some great news for you. At HFS Financial, we specialize in financing for all types of home improvement projects, from large-scale, expensive home renovations to simple repairs and upgrades. And zero of them require stage funding!

It’s simple and efficient. As a contractor, offering direct-to-consumer home improvement loans with no stage funding is one of the best things you could do for your business. It’s a total game changer. Are you ready to let HFS Financial work for you? Click here to learn all about what we do for our contractors or contact us today to get started.

Stage Funding for Home Improvements Explained

HFS Financial solely operates in the home improvement lending space which means we can confidently say that we are THE HOME IMPROVEMENT LOAN EXPERTS. When you apply at HFS Financial you will get a customized loan experience tailored to ensuring you get the best personal loan to meet your home improvement loan needs.