Grow Your Business with Financing: Plug & Play Customer Financing Methods

Published in About on May 17, 2024

By Ben Barrick, Director of Business Development, Hearth

Last year, I went online to buy my children coloring books. I chose six that I thought they'd really like with their favorite cartoon characters. At checkout, I was asked whether I wanted to pay $42 today or make installments payments over the next six months.

That's a true story. And it's evidence that consumers want the ability to pay for things over time.

Here are a couple cold hard facts:

• Salespeople who offer financing have a 20-30% high close rate.
• Homeowners that finance spend up to 30% more on the project.
• Almost 80% of homeowners want to finance a portion of their project.

Are you offering financing? If not, why?

The Financing Punch List

Whether you offer financing now or are considering it, you need to know how to implement it into your sales process.  Don’t just sign up for something and hope it works. My goal here is not to convince you to have financing available. But, rather, make money and grow your business by using it.

So, here is a punch list of six easy ways to help you get started making more money by including financing in your business. These are actionable steps you can take today to start selling more tomorrow.

1. Add financing to your website.

Add that you offer financing on the top of the front page of your website. People spend only seconds on a website, and you need to catch their attention quickly.

2. Tell every customer about all your payment options.

You’re not selling financing. You’re selling a home accessibility product and service. But your job as a salesperson is to be the easiest person to buy from. Let your customer know early in the sales process about every way they can pay you. Here’s an example: “Hey folks, just an FYI. 50% of my customers pay with check, cash, or credit card. The other 50% prefer an affordable monthly payment. Help me out, which bucket do you fall into?”

3. Add financing options to every estimate.

What’s easier to digest: $10,000 or $250 a month? American households, especially in this industry, operate on a monthly budget. Most don’t have thousands of dollars to spare. But they still need home accessibility solutions. And if it fits within their monthly budget, they’re more likely to get the work done. Don’t assume that because they live in a big fancy house that they have money stuffed in their couch or because they drive a ‘93 Pontiac that they will never be able to afford you. They’ve done their homework already.

4. Accept credit cards.

Find a credit card processor and accept credit cards. It’s how Americans buy just about everything.

5. Run rehash campaigns.

Don’t waste your leads. You already spent hundreds of dollars getting them and spent hours working on their estimate. They probably didn’t buy from you because of the price. Follow up each month with people you already gave estimates to and remind them you offer affordable monthly payments. You can also tell them about a holiday special, or a new discount. Anything that re-engages them.

6. Mention financing in your marketing.

Run ads, put it on flyers, include it on your Google Business Page.  Modernize reported in their “Homeowner Insights 2023” that almost 80% of homeowners wish to finance a portion of their project. If you’re not marketing that you offer financing, you’re likely missing out on a lot of qualified leads and losing business to your competitors.

These action steps can be completed in a single day or two.  They are easy ways for you to grow your business, save time, save money, and sell more often.

Home accessibility companies all over the country are selling hundreds of thousands more each year just by offering financing to their customers the right way. Think about what that increase of sales can do for your business. Think what that means for your sales team and their commission checks, how it can change their life. Think about how much more you could afford for your kids or spouse, buying a new truck, or planning your next vacation.

If you’re offering financing now, what can you do better? If you’ve never offered it, it’s time to think about it.

To learn more about Hearth, visit their vendor page on the member portal.