When a customer calls in for home improvement or repair, the request is usually urgent. A broken water heater, electrical issues, an EV charging station for a new car, or a leaky pipe must be addressed immediately. Unfortunately, these kinds of immediate-need services are also typically costly. Providing an affordable, accessible payment option helps homeowners afford urgent home repair and improvement services without delay.
Understanding the trends in home improvement consumer financing enables businesses to meet consumer needs while positioning themselves to sell more, increase revenue, and sustainably grow their operations. United Consumer Financial Services, a leader in providing home repair and improvement financing, offers fast and simple financing for these critical situations. Read on to learn more about the trends in home improvement consumer financing and how partnering with the right firm can help your business win your market.
Why Consumer Financing Is a Game-Changer for Home Improvement Businesses
The calls to home improvement businesses are often for immediately-needed services, including:
- Burst pipes
- Electrical panel failures
- Water heater replacement
- EV charger installations
- Furnace and air conditioning replacements
And while these fixes can’t wait, many homeowners find themselves under a significant financial burden to cover the costs of these types of repairs or improvements. Most Americans don’t have $1,000 or more in emergency savings to allocate to home improvement needs. Consumer financing shifts the conversation from “I can’t afford this” to “Let’s fix it now.”
Consumer financing offers affordable and accessible payment plans that enable consumers to choose their services today. Instead of postponing the project until the homeowner can figure out how to pay, consumer financing speeds up job approval so contractors can get started as soon as possible. When you partner with a firm like United Consumer Financial Services, consumers can apply and receive a credit decision in just minutes, empowering businesses to capitalize on the momentum of the sale to close the deal while serving the customer. A quick, seamless application and approval process reduces stress for homeowners and improves trust in the service provider, fostering loyalty that leads to repeat business.
Offering consumer financing provides homeowners with immediate access to the services they urgently need, while businesses gain a competitive edge in a market where every advantage counts.
Consumer Financing for Planned Home Improvements
Even consumers who are planning a home improvement want a payment plan. Projects can include:
- Landscaping
- Fencing
- Roofing
- House painting
- Generators (solar generators and gas generators)
- Whole-home water filtration
While non-emergency home improvements are not urgent, consumers may not have saved enough money for these large purchases. Monthly payment plans for your customers can mean helping more people get the beautiful home they want and need.
Key Trends in Home Improvement Consumer Financing
Every home improvement business, especially plumbing and electrical contractors, benefits from providing consumer financing. The “right now” nature of service calls demands fast, affordable options. When you understand industry trends, including evolving consumer wants and needs, you can implement a financing program that draws homeowners in and helps you book more services. Below are a few of the key trends in home improvement consumer financing.
Mobile-First Financing
Emergency home repair requires immediate action, which traditional paper financing applications don’t allow for. With a mobile-first approach to consumer financing, homeowners can fill out an on-line application from their phone or a company tablet on-site –– no cumbersome, time-consuming paperwork that stands in the way of urgent home repairs or improvements. The quick turnaround of a paperless application speeds along the approval process, so contractors can begin the project the same day.
Seamless, paperless application is crucial for home improvement businesses. A mobile-first approach to consumer financing streamlines the sales process, enabling immediate service and positive customer experiences that lead to higher retention rates and long-term revenue.
Same-as-Cash Promotions
Many home repair and improvement contractors take advantage of same-as-cash consumer financing promotions from their financing company. These affordable, no-interest offers provide affordable pathways to repair while giving contractors a competitive advantage. This is especially true of high-ticket jobs that can’t wait, like water heater replacement or urgent furnace replacement.
More Flexible Pricing Strategies
Businesses and consumers alike benefit from flexible credit options. Customizable financing strategies enable businesses to tailor their services to meet each individual’s specific needs.
UCFS offers pricing strategies tailored to our merchants and their customers. For example, merchants wanting a low-risk approach to consumer financing can pay a lower percentage of the financed amount to UCFS. UCFS is then more conservative with approvals to reduce exposure to losses and defaults. However, home improvement companies focused on increased sales volume and growth can take a more aggressive approach, paying a higher percentage of the sale to UCFS. This allows contractors to provide financing –– and much-needed home repair services –– to more consumers, even those with not-ideal credit.
Consumers need flexibility, and in today’s consumer financing landscape, so do merchants. A customizable financing option serves consumers while helping home improvement businesses grow.
EV Charging Station Financing
As EV adoption increases, so does the need for residential EV charging installation, especially in suburban areas without the infrastructure to support charging needs. An emerging trend in home improvement consumer financing centers on the growing demand for in-home EV charging stations.
These customers often find themselves in challenging positions: they’ve just taken on a new monthly EV car note, but they still need to install a reliable charging station in their home or garage. Accessible, affordable EV charging station consumer financing facilitates immediate installation, giving homeowners the gift of convenience and peace of mind that comes with a fully charged EV battery right from home.
How United Consumer Financial Services Supports Home Improvement Providers
Choosing the right consumer financing partner helps you maximize your financing program, your service, and your sales. United Consumer Financial Services, a Marmon/Berkshire Hathaway company, brings more than 45 years of experience to the table to empower home improvement businesses in optimizing their financing processes.
We provide
- Simple Consumer Application – UCFS offers and online credit application that allows for fast approvals in just minutes.
- Competitive Approval Rates – We work with merchants to create flexible, competitive pricing strategies that increase approval rates –– and sales.
- Dedicated Support – Our seasoned reps provide dedicated, one-on-one training and support for our merchants to increase the impact of your consumer financing program.
UCFS has the tools and resources that empower home improvement businesses to offer affordable financing on the spot at every call. With a credit decision sent in just minutes, those urgent home improvement projects that can’t wait don’t have to.
Grow Your Home Improvement Business with Consumer Financing Today
In the home repair and improvement industry, offering consumer financing options is essential. Businesses that adopt user-friendly, flexible financing solutions like those from UCFS are better equipped to meet urgent needs while growing their revenue.
Contact our team today to learn more about consumer financing for home improvement contractors and how a partner like UCFS can help you serve more homeowners and increase sales.
