In today’s competitive market, contractors need every advantage they can get to win jobs and grow their businesses. Offering financing is one of the most effective ways to achieve this. When contractors provide homeowners with flexible payment options, they not only increase their chances of closing deals but also open the door to larger, more profitable projects. Here’s why every contractor should consider adding financing to their toolkit and how Leap has improved the traditional financing process.
With Leap’s Universal Credit Application, contractors can say goodbye to the hassle of filling out separate applications for each lender. In the past, if a loan was declined, contractors had to re-enter the same information for every lender, causing delays and frustration. It simplifies this process by allowing contractors to submit a single form to multiple lenders, streamlining the entire workflow. This not only saves valuable time but also reduces the risk of errors, enabling contractors to focus on what matters most – growing their business, rather than getting bogged down in paperwork.
The Benefits of Offering Financing to Homeowners
1. Increase Close Rates
Contractors who offer financing typically see an 18% increase in close rates. Providing a way for customers to break down large expenses into manageable monthly payments makes it easier for them to say “yes” to big projects. Without financing, you risk losing potential clients to competitors who offer more flexible payment options.
2. Boost Average Job Size
Offering financing can also lead to larger projects. Homeowners who can spread out payments over time are more likely to expand the scope of their project. This can mean the difference between a small renovation and a complete home upgrade, leading to bigger, more profitable jobs. Contractors who offer financing often report an increase in average job size by up to 30%.
3. Improve Cash Flow
When you offer financing, payments are handled by the lending institution, ensuring you get paid faster and more consistently. This eliminates the need for chasing payments or dealing with delayed checks, improving your cash flow and allowing you to focus on growing your business.
The Traditional Lending Process: A Time-Consuming Barrier
Traditionally, offering financing was cumbersome for contractors and homeowners alike. Each time a homeowner applied for financing, they had to go through the process lender by lender, often filling out redundant applications. Here’s what that looked like:
- Multiple Applications: For every lender, the contractor or homeowner had to fill out a new application.
- Repetitive Data Entry: Every application required the same personal and project details to be entered manually.
- Rejections and Reapplications: If a homeowner was declined by one lender, they had to start the process over with another lender, increasing delays and frustration.
- Lost Time and Sales: This manual, repetitive process often resulted in delays, lost deals, and a poor homeowner experience.
Enter the Universal Credit Application: Simplifying the Lending Process
Leap’s Universal Credit Application is designed to address the pain points of the traditional lending process. Instead of manually applying to individual lenders, contractors can now streamline the process through one single application. Here’s how it improves the financing process:
- One Form, Multiple Lenders: The Universal Credit Application allows contractors to fill out one form to submit to multiple lenders. This eliminates the need to manually re-enter the same information over and over.
- Increased Approval Rates: If one lender declines the application, common fields (like name, email, address etc.) are copied over to the next lender in your waterfall, increasing the homeowner’s chances of approval without the hassle of multiple submissions.
- Faster, Easier Process: By reducing the number of forms and simplifying the process, contractors can save time and close deals faster, ensuring a smoother experience for homeowners and helping contractors secure more business.
Offering financing is no longer just a bonus option – it’s a crucial tool for growing your contracting business. With innovations like the Universal Credit Application, the process has become easier, faster, and more efficient, allowing contractors to close more deals, take on larger projects, and enhance their overall customer experience.
If you’re already enrolled in lending on SalesPro, you can start using the Universal Credit Application today. Interested in learning more? Reach out to FinTech@leaptodigital.com.
