Posted by Juliette Riddle
Uploaded 104 days ago
Do you want to turn a $0 invoice into a sold job? If you are not offering your customers financing options on big ticket jobs, you may be doing yourself and your customers a disservice. When larger home repairs are needed, it is often the cost that has the customers saying no and seeking cheaper companies – and those cheaper companies will likely not provide the level of service you would.
Financing options can help you to secure the job and help the homeowner get the high-quality repair they need. The cost remains the same, but having low monthly payments makes it easier for customers to digest, especially when they are on fixed incomes or trying to support their own families.
Most financing companies offer several tiers of finance options as well. Customers can choose from different loan terms, such as 6 months, 12 months, 15 months, as well as fixed rates and variable rates, no interest, and same as cash deals. This helps you to customize your financing offers to meet a wide variety of homeowner needs.
There are many ways to offer financing. Some companies choose to offer in house, no interest financing by setting up a payment plan in two or three easy payments. This may be useful for smaller jobs but does put your company at risk if the customer does not pay. You would have to settle all collection issues.
You can also utilize local bank credit cards for short term, low interest financing for smaller jobs.
There are also third-party financing institutions, such as GreenSky, Synchrony, and Foundation Finance to name a few that our members have utilized. With a quick Google search, you can find a system that is the right fit for your company and customers. Some financing companies also specialize in home services, so they know your business. Through third party financing systems, you can easily help customers check if they qualify while still on site presenting your estimate. By doing this on site, you eliminate customers going with a different company or searching around for a “better” deal.
All payments are handled through your financing partner, so once the customer signs off on the job, you are funded and the customer deals directly with the financing company. Funding in most cases takes between 3 and 5 days, so there is not a long wait getting your money into the bank.
PayPal business accounts also have the option to offer financing for your customers. You are paid directly through PayPal and the customer payments are arranged through their PayPal portal.
Plus, third party financial institutions handle all payment responsibility allowing you to focus on providing the best services and helping your customers.
Each state has different laws regarding fees that companies can charge and how those fees are applied. It is best to familiarize yourself with your state laws. Financing companies should be able to help clarify all fees your company might be responsible for when setting up your account, as well as helping you remain compliant within your state.
Many home service companies build the financing fees directly into their pricing book to account for both finance jobs and credit card fees. Offering financing as an option up front helps customers to make a fast decision and allows you to discount prices for cash payments.
Financing is the best way to increase your sales for customers who want to use your services but may not have the money up front. Just like offering multiple estimate options such as Good, Better, Best, giving your customers the option to finance larger jobs can help them to make the best choice for their budget and get the services they need.
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