Selecting the right indirect financing partner is crucial for businesses looking to offer additional value to their customers while managing risks effectively. This partnership can significantly influence customer satisfaction, risk mitigation strategies, and financial performance. Therefore, conducting thorough due diligence and asking critical questions is essential to ensure alignment between the business and the potential financing partner.
Below are 31 questions one should ask when assessing an indirect financing partner’s experience, reputation, and compatibility.
Experience and Reputation:
- How long have you been in the indirect lending business?
- Can you provide references or testimonials from current or past partners?
- How long have you been working in my industry?
Loan Products and Terms:
- What types of project lending do you specialize in?
- What are your merchant/dealer fees?
- Are there any hidden fees?
- Do you offer any special promotional low rates or interest-free options?
Underwriting and Risk Management:
- What is your underwriting process?
- What are your typical approval rates?
- How long are approval decisions valid?
- What credit score do you work with?
- How are your project loans secured?
- What is the maximum approval amount?
Technology and Integration:
- What is your customer application experience like?
- What kind of support and training do you provide for your technology?
Compliance and Regulation:
- How do you ensure compliance with relevant laws and regulations?
- What is your process for staying updated on changes in legislation and regulation?
- Have you ever faced legal action or fines related to compliance issues?
- What are your eligibility requirements for dealer partners?
- How do you ensure a positive experience for borrowers?
- What is your process for handling customer complaints or disputes?
- Do you offer customer support, and if so, what are the hours and channels?
Speed and Efficiency:
- How quickly can you make a lending decision?
- When do I get paid?
- How will I get paid?
- How do you ensure the lending process is smooth and efficient for us and the borrower?
Support and Communication:
- What kind of support will we receive as a partner?
- How hands-on is your customer support team?
- Who will be our main point of contact?
Flexibility and Scalability:
- Can your services scale with our growth?
- What is the process for adjusting our partnership as our needs change?
Starting a relationship with an experienced financing partner goes beyond a single project. These lenders are invested in the long-term growth and success of the home improvement companies they partner with. They can provide invaluable financial advice, guide business development efforts, and even support companies through market downturns. By building a long-term relationship, companies can rest assured that they have a reliable financial ally.
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