Offering finance to customers can be a crucial component in increasing your sales. It can open your business up to more job opportunities, and larger projects, and ultimately makes your business a one-stop-shop from start to finish for any homeowner.
But offering consumer financing should be done carefully because not all contractor financing programs are created equal. You can also contact Axximum funding via online.
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Some of the things we recommend to consider when you compare contractor financing programs:
Depending on the financing company you are researching, they all have different models on how they make their money. Some contractor financing programs will charge the contractor a percentage of the loan amount taken by their client.
Make sure with any contractor financing program that you consider, that you are not in any way liable for your client's loan.
3. Contractor restrictions to join financing programs
Many programs have thresholds contractors must meet in order to join the contractor financing program. Some will require a minimum number of years in business, while others require a minimum dollar amount in sales.
Some contractor programs will even do background checks and license verification in order to join. This may not be a problem for bigger businesses that have been around for some time, but for a newer business, it can be a restriction to offering financing with some companies.