Navigate Your Financing Strategy with Confidence: Tips from FTL's Experts

So, you’re already convinced that you need to offer financing, or maybe you’ve been offering it to homeowners for years. If that’s the case, how do you know that you are offering financing in the most effective way? How do you know when it’s time to change your approach or to update what types of loans you are offering?

We sat down with FTL’s Contractor Support experts to get answers to these questions and more.

For contractors just getting started in homeowner financing, how do you recommend they incorporate it into their process?

Always introduce financing early and lead with monthly payment options rather than the total price to help avoid sticker shock. Be sure to present financing as an option on every job; don’t make any assumptions about a homeowner’s financial situation. You never know who might want to finance a repair or a replacement. If you mention financing at the end of the sales process, customers are less likely to choose financing, and you risk losing the deal.

Train your team. Many contractors don’t feel comfortable discussing financing, so make sure they feel confident about when and how to introduce the topic to customers. Too busy to train your team? Your FTL Account Specialist will be happy to train anyone you’d like. Make this part of your process when you bring on new team members.

Don’t forget to market financing on your website and social media channels. Potential customers will look for companies that offer financing, so be sure to advertise that option. You can even put your unique registration link on your website.

What programs do you typically recommend when a contractor is just getting started with FTL?

3 loan types are automatically added to the contractor’s account: 60-, 84-, and 120-month options. There are no contractor fees associated with these loans. 90% of our contractors choose to only offer our no-cost programs.

After contractors are trained, they can review the rate sheet and choose to add additional loan options. Some may opt for lower-interest loans and absorb associated fees as part of their operating costs. These types of loans help them stay competitive with companies offering promotional or reduced-rate financing.

What mistakes do you see contractors make when they first start offering financing?

As we mentioned earlier, some contractors are not comfortable discussing financing with their customers. We remind them that they aren’t “selling” homeowners on financing. They are just providing them with much-needed options, not pressuring them into anything. In fact, customers will expect to be given financing options.

It’s important to buy into the financing process, understand the benefits, and present it well. We can support your team along the way, whether you are bringing on new employees or if your team needs a refresher training.

At what point should the contractor assess their loan strategy?

Our team checks in with new contractors every three months (during their first year) to see how things are going. We review whether there is any activity on their accounts. And, if not, why?

We discuss whether the no-cost loan options are working out or whether you should consider adding other options. During this time, we can review the rate sheet and discuss how to build fees into your operating costs. Again, offering more options to homeowners helps contractors stay competitive.

If you find that approved applications aren’t moving forward, try to determine what is stopping the customer. You can always reach out to your Account Specialists to get their insight on whether you should make any changes.

Is it easy for a contractor to change the types of loans they offer?

Yes! It’s a straightforward process. The easiest way is to connect with your Account Specialist. They can walk you through available programs, help you add or remove loan options, and suggest programs that best fit your needs.

We want you to feel confident that you understand what you are offering so you can answer homeowner questions. However, if there are any questions you can’t answer, you can always call us.

What 3 pieces of advice would you give a contractor who wants to make financing part of their growth strategy?

• Always lead with the monthly payment. Instead of overwhelming your customer with the full cost, give them a number that fits within their budget.
• Change out your programs, if needed. If you are in a competitive space, you should consider offering your customers more flexible options, such as lower rates.
• Call us! Work with your Account Specialist to pick the best programs for your business.

Wrapping Up

Whether you have technical or financing questions, our Contractor Support team is there to help you and your team. We also have a dedicated Customer Support team to answer any questions that your customers may have. Our goal is to make financing as simple as possible and help you use it as a tool to win more jobs and increase ticket size.