By James Cadena, Vice President of Marketing, Service Finance Company, LLC.
Roof replacement is an important and expensive investment. The U.S. Census found that Americans typically spent $6,800 to have their roofs replaced in 2017.
For most homeowners, paying for a new roof out of pocket is not an option. A NerdWallet survey found that 3 in 10 (31%) homeowners say they don’t have money set aside for home repairs and improvements. This is why it’s important for contractors to offer different options for homeowners to pay for the improvement.
Limited loan options
Personal loans and credit cards come with high interest rates and shorter loan terms while some lenders charge high fees to process home equity loans. Using financing offered by the contractor is much more attractive because it opens liquidity that homeowners didn’t have in the past.
Increasingly homeowners are exploring financing options to help with their purchase. According to NerdWallet’s survey, 56% of homeowners said they’d be willing to borrow money, from a lender or family member, for example, to do home repairs or improvements that they knew would increase the value of their home1.
Attract more customers with financing
Financing helps break the financial investment into smaller monthly payments. It also makes products more affordable and attractive, allowing the customer to buy more efficient options. Contractors who offer financing can also attract more customers and grow sales. Financing gives your customers an affordable way to pay for their roof repair or replacement, allowing you to appeal to those customers who may not be able to afford the full replacement cost.
A financing program provides you with the ability to offer your customers the purchasing power they need to complete their roofing project today. A finance program with competitive rates and fast payment turnaround times also allows you to carry on business as usual while providing a program that will help you increase sales.
Many manufacturers are also signing up for sponsorships with finance companies because they’re motivated to have contractors who can offer financing at the kitchen table. As a result, more and more contractors are being introduced to financing and using it to improve their overall business. Some contractors have improved their average ticket by almost 40% since they started offering financing. Up-to 40% of consumers, regardless of credit, use the contractor’s financing option if the contractor successfully offers it.
The Beacon Homeowner Financing program, for example, allows contractors to propose a ‘Best-Better-Good’ roofing solution to consumers, apply for a loan and get a credit decision in less than two minutes start to finish. Using the mobile app, decisions are made within 20 seconds after pushing the ‘submit’ button. With short- and long-term options, and various interest rates (including 0% interest) contractors can customize a payment solution for almost every type of customer. And payment to the contractor is lightning fast – 24-48-hour funding via AC, at no additional cost.
Don’t leave money on the table
It was estimated that total U.S. home improvement expenditure amounted to about 394 billion U.S. dollars in 2018. Consumers in today's economy have become smarter with how they spend their money, making it important for businesses to adapt and offer alternative payment options. A contractor offered financing program breaks down the total purchase price into affordable monthly payments. This will help contractors appeal to more customers and allow more people to say "Yes" to your recommended product or service. Also, consumers are likely to spend more if they get an attractive finance program that makes the product more affordable.
James Cadena is Vice President of Marketing at Service Finance Company. To learn more about the Beacon Homeowner Financing program and apply today, visit https://www.becn.com/homeowner-financing or contact James at James.Cadena@svcfin.com.
R.H. Marcon, Inc. Streamlines Its Service Department after Implementing FCSRead More ...
This Roofing Underlayment Can Handle the HeatRead More ...
Lightning fast! Complete roof repairs in a flashRead More ...