In today’s rapidly evolving market, businesses constantly seek innovative strategies to stay competitive and foster growth. One powerful tool that many organizations have incorporated into their arsenal is customer project financing.
Here’s an in-depth look at the transformative benefits of offering project financing for both businesses and their customers.
Benefits for Your Customers:
Peace of Mind: When an essential item (like a roof) needs repair unexpectedly, project financing allows the customer to replace it without waiting or compromising on quality.
Enhanced Buying Power: Some project financing offers allow customers to upgrade their purchases. For example, a customer might opt for a premium version instead of buying a low-cost material because they can spread the cost difference over time.
Flexible Payment Options: Many project financing plans offer different terms, such as varying interest rates or payment periods, allowing customers to choose a plan that fits their budget.
Immediate Purchase Ability: Customers can acquire a product or service immediately, even if they don’t have the entire amount readily available. This is especially beneficial for high-cost projects or emergency services.
Improved Cash Flow Management: By spreading the cost over time, customers can manage their budget more effectively and maintain liquidity for other immediate needs.
Affordability: Monthly payments can make dream home improvement projects more accessible. It breaks down the cost into smaller, more manageable amounts, allowing customers to turn their dreams into reality, which might otherwise be out of their immediate financial reach.
Hedge Against Inflation: If a customer obtains project financing at a fixed interest rate in a rising inflation environment, the “real” cost of the purchase might decrease over time since they’re repaying with “cheaper” money.
Benefits for Your Business:
Accelerates Your Sales Process: With immediate access to project financing, customers can make quicker purchasing decisions. This streamlines the sales process, reducing the time between a customer’s interest and the final sale. A Forrester study commissioned by PayPal found that when companies began offering point-of-sale financing to customers, they experienced a 32 percent lift in sales.
Increases Customer Retention: Offering project financing can convert one-time buyers into loyal customers. With easy payment options, customers are more likely to return for future purchases, trusting that the business will provide manageable payment terms.
Increases Home Improvement Services Affordability: Particularly in industries like home improvement, where projects can be expensive, project financing options enable customers to undertake necessary or desired renovations. By spreading out costs, homeowners can more easily budget for their projects.
Incentive to Purchase: Some customers might be on the fence about making a purchase. Offering project financing can be the nudge they need to commit, especially if they compare multiple businesses and only one offers financing.
It Sets You Apart from Your Competition: In a competitive market, businesses need a unique selling proposition. Offering project financing can be that edge, showing customers that a business is flexible and focused on customer needs.
Attracts More Customers: Simply put, project financing can broaden a business’s customer base. Those who might not have considered a home improvement project due to budget constraints might now see it as attainable.
Increase Project Size: When customers know project financing is available, they’re more likely to consider bigger projects. This can lead to increased sales and more significant project sizes for businesses.
Improved Customer Satisfaction: At the heart of any successful business are satisfied customers. Offering project financing can improve the overall customer experience, as clients appreciate the flexibility and empowerment of making decisions based on preference rather than purely on immediate financial ability.
As you can see, offering project financing isn’t just a strategy—it’s a service for businesses seeking growth and customers seeking flexibility. As markets continue to shift and evolve, financing remains a steadfast tool, providing numerous benefits that foster businesses’ long-term success and greater customer satisfaction.
Are you ready to grow your business with affordable project financing for your customers?
Partner Forward with Salal Dealer Direct
We team up with contractors nationwide to provide their customers with affordable financing for various solar and home improvement projects.
We can offer some of the most competitive rates and dealer fees because we’re part of a member-owned credit union. That means our profits return to our members—and business partners—through lower rates and fewer fees.
Our Dealer Direct Financing programs feature:
- An online loan application with fast credit decisions and a high approval rate.
- Terms and loan amounts are available to fit various budgets and project sizes.
- Partners pay ZERO dealer fees on our standard program.
How to Start Offering Salal Dealer Financing to Customers
We’re serious about helping your business grow with fast funding times and personalized support from a dedicated and experienced team of lending specialists. To get started, our dealer application process requires these documents:
- Completed dealer questionnaire
- Current income statement and balance sheet
- Copy of business license and/or contractor’s license