Finding the Best Financing for Your Home Improvement Project
With the high cost of housing and the difficult requirements for getting a new mortgage, it often makes the most sense for consumers to simply improve the home they are in. Home improvement is an American tradition. The results can be very gratifying. Updating a kitchen or building a new bathroom are big projects that can yield impressive results. Or perhaps the family is growing and they need to add another bedroom or finish the basement. Consumers often feel their only finance options are coming up with a pile of cash, maxing out several credit cards, or getting a home equity loan. All these options can be expensive.
Putting all their saved cash down on a home improvement project can leave consumers underfunded for emergencies like unexpected car repairs and illness. Credit cards can provide funds but at high expense. They also have to be paid off within a couple of years.
Home equity loans frequently come to mind as the preferred way to finance home improvements. Of course you then get into closing costs and loan processing fees that drive the price up while making your mortgage payoff even further in the future.
Likely, consumers may not have been told about the best option. They can use customer financing to give them all the money they need for just about any type of home improvement project. Customer financing is far easier to qualify for. You don’t have to put up collateral, pay closing costs or at times, loan processing fees. You can also qualify for a lot more money using customer finance than you can with credit cards. And unlike credit cards, you have longer to pay back the borrowed funds. This can give customer an affordable monthly payment that allows them to fund the exciting home improvement they want. Customer financing also makes a lot of sense for businesses serving the home improvement sector. Lumber, hardware, paint, flooring, and other related businesses can greatly increase sales and purchase sizes by offering customer financing.
Businesses of all sizes are learning that retail finance is an essential part of maximizing sales and profits. Financing your customers lets them buy more and sooner.
Contact us at Financing Your Way to discuss smart customer finance options for your business.