The home improvement industry is a trillion-dollar market. It is a booming industry with more and more homeowners wanting to invest in their homes, especially with the way technology is changing the world. This has led to an increase in home improvement loans and financing options for customers, which can be very beneficial for business owners.
Homeowners can't purchase materials they need at a store near them without leaving their neighborhood or wait weeks before getting it delivered from another state. Home improvement financing is a great way to offer more convenience for your customers and grow your home improvement business at the same time.
If you also want to pursue a home improvement business, home improvement consumer financing is a great way to get started. In this article, you will learn a lot about home improvement financing and how it helps grow your home improvement business.
What is Home Improvement Business?
A home improvement business is a company, person, or individual who purchases supplies such as lumber and tools to repair homes. This business involves repairing, renovating, and remodeling houses.
This business upgrades the interior and exterior of a house by various methods and transforms it into an entirely new space.
Why would someone want to start a home improvement business?
There are many reasons why people decide to go into work in the home improvement industry. Some of them include the following:
The opportunity to be their own boss.
They love home improvement projects and want to get paid for doing what they enjoy.
Home improvements are a good investment, especially when it comes time to sell your property because buyers like houses that have been improved upon.
One common reason is that they have experienced, for example, they may be trained carpenters who lost their job due to outsourcing.
Home improvement business is lucrative and generates a lot of revenues if run successfully.
What is Home Improvement Consumer Financing?
Home improvement consumer financing is a convenient way to get cash flow for a home improvement project. Home improvement financing companies offer financing to customers for things like home improvements, landscaping, heating, and cooling systems. It is the extended term of financing, meaning that customers can defer payments for up to six months at an interest rate usually lower than what they might find with a bank loan or credit card.
A home improvement consumer finance company will offer you flexible terms and payment plans so it's easy to budget your cash flow on both ends when you're getting started in business as well as after you've established yourself in the market.
Home Improvement Consumer Financing also offers more benefits such as tax deductions and other incentives which are not available from banks or financial institutions. The main objective of this type of financing is to help grow one's business which includes marketing, discounts off installers, contractors, tools, and materials.
Why Does Home Improvement Consumer Financing is Better than Bank Loans?
Bank loans are often not available to many homeowners for home improvements as they need to fulfill a lot of requirements for getting loans. Most of the home improvement business owners couldn't meet those requirements and so they are usually denied loans.
Home Improvement Consumer Financing is not as strict as a bank loan and will offer more flexibility in terms of qualifying criteria, interest rates, dollar amounts needed, repayment periods. Income-based home improvement loans will help homeowners who are struggling to make ends meet and need the money for their urgent needs. The funds available could be used for repairs, maintenance, or even new construction projects.
The initial process of Home Improvement Consumer Financing can be much faster than traditional lending which reduces the risk or uncertainty associated with waiting on loans from banks due to pending paperwork requirements and extended wait times.
How Home Improvement Consumer Financing Helps Grow The Business?
Home improvement consumer financing is one of the best ways to grow your business and expand it in a more cost-effective way. Following are the benefits it offers to home improvement business owners:
Improving The Sales Process
Home improvement consumer financing can enable the sales staff to offer more competitive deals for a customer. A home that is outfitted with new siding, windows, or roofing has increased resale value. Home improvements also make homes more comfortable and better able to withstand external forces like windstorms and weather changes.
Increase The Productivity Of Your Site Crews And Staff
Staff productivity will increase when they have access to funds upfront for materials needed in order to complete their projects on time. Providing them with as much of the material from start to finish means less need for delays while waiting for payment which inevitably slows down their work pace significantly.
Paying For Materials Up Front With No Lines Of Credit Needed
Home improvement financing offers capital for materials upfront. This is especially helpful for customers who are looking to purchase cabinets, countertops, or flooring from a home improvement company but do not qualify for traditional lines of credit with the bank -or- they have maxed out their limit and need more money.
Improving Marketing Tactics
Marketing tactics are a necessary tool for growing any business. However, without the necessary funds, those marketing tactics are less likely to be effective. Home improvement financing allows customers a better chance at expanding their business by investing in more expensive items that make them stand out from competitors.