Choosing the Right Financing Program: What to Consider

Offering financing is one of the easiest and fastest ways to help grow your Business. Choosing the right financing program for your Business is the vital first step. 

“Having financing as part of the ongoing sales process definitely impacts the closing percentage in a positive way. There are times when looking at a home investment, a customer might not have disposable income to tap into, but there is still the ability to afford the overall project by layering financing into the mix. It definitely has assisted in helping us close more business and support customers in outfitting their homes with windows and doors.”

—Lisa McCrary-Tokes, CMO & Vice President, ARMORVUE Window & Door 

For most home improvement Businesses, the question isn't whether to offer financing, but which program to use. That’s because today’s consumers expect to be offered payment options. To be effective, the financing program must meet the needs of your Customers with a fast, easy, and frictionless process. That means selecting the right financing program.  

Here are a few questions to consider when comparing consumer loan programs: 

Is joining the program free and easy? 

The application form should only require necessary information and there should be no hidden fees. 

Does the program offer a wide range of loan plans? 

A range of loan plans from which to choose allows you to customize the presentation of the financing to meet the needs of both your Customers and your Business. For example, you may wish to offer a menu of Promotional Plans – like No Interest (with or without payments) if paid in full within the promo period¹ – and several fixed APR plans of varying terms. The bottom line is: If the financial program doesn’t offer it, neither can you. 

Are both the loan application and payment processes fast, easy, and paperless? 

Find a provider with the technology and infrastructure required to simplify the entire process.

For example: 

Incorporating financing and payment options as an integral part of your in-home presentation should be the work of a few moments – not a major undertaking. 

Can Customers review their account & make payments the way they prefer? 

To ensure an excellent Customer experience the provider should enable Customers to have the flexibility of:

Choose a provider that makes account and payment services available when, where and how the Customer prefers them.

Is the program designed to help sell and close deals? 

When you choose a provider, look for: 

These options can help you provide options to suit the budget of your Customers. 

Does the loan program offer substantial training, service, and support?  

Once you've settled on a provider, your sales and administrative staff will need training, even if the loan program is simple to use. Support should go beyond initial training, however. Make sure the company you choose has experts on staff to answer questions and help you learn to use affordable payment options to maximize Customer satisfaction. That’s the best way to grow your Business. 

Choosing wisely is worth the time and effort.   

Excellent Customer service is the bedrock upon which a successful Business is built. The financing program you choose must care about service as much as you do and have the technology and systems in place to provide it. Choose carefully and insist on a comprehensive selection of loan plans, quality training, and ongoing support.

¹ Subject to credit approval. Interest is billed during the promotional period, but all interest is waived if the purchase balance is paid in full before the expiration of the promotional period.