Competition is fierce in today’s economy, making it even more critical for home improvement businesses to find new ways of closing sales with customers. Many businesses lose opportunities every day by not offering tiered financing options and overlooking a huge market segment: consumers with less than perfect credit or a limited credit history.
In the home improvement industry, tiered financing is key to closing a sale for all consumers. According to Synchrony Analytics, 44 percent of consumers would not have made a major purchase, or would have chosen another merchant, if financing had not been available. The average home improvement sale ranges between $7,000 and $8,000 and the majority of Americans do not have $5,000 in savings, so the ability to finance home improvements is paramount to closing the sale.
Partnering with Genesis Credit can help businesses leverage the power of second-look financing to engage with the non-prime segment. The average cost for second-look financing is only 1.10 percent more for the contractor, yet the addition of a second-look option provides a 10-15 percent approval lift for the business. Considering the approval lift and that financed sales are on average 20 percent higher than cash sales, the benefits of a second-look program significantly outweigh the minimal cost of providing a second-look option and would generate sales that would otherwise be lost.
Providing tiered financing programs gives businesses the first opportunity to provide non-prime consumers with financing to purchase the products and services they need. With non-prime consumers, the take rate does not significantly change with the higher payments because they understand their credit options are limited and welcome the opportunity to work with a contractor that provides multiple financing options.
Versatile Credit provide a seamless, single frictionless application process for the consumer. If a consumer’s application is declined by Synchrony, it can be sent to Genesis Credit for review and approval in real time. With higher approval rates than other second-look providers, Genesis Credit allows home improvement businesses to earn more customers, increase sales and build brand loyalty that drives repeat business.
For more information on Genesis Credit financing solutions, contact Dan Franke at email@example.com. (Dan Franke is Vice President, Business Development for Genesis Credit, the leader of second-look financing solutions.)