Home improvement projects fall into two categories: wants and needs. The new kitchen is a want, the new roof a need. It’s easy for clients to talk themselves out of a project that they want because they assume that they can’t afford it. If it’s a project that they need—like a new roof—they’ll find a way. This is where financing comes into play.

Many owners of home improvement companies—businesses that sell roofing, siding, windows, and other short cycle jobs—know this. The best finance anywhere from 60% to 75% of their business. They don’t wait for homeowners to find the cash. That could lose the sale.

Affordable And Convenient

Here are five reasons to offer financing:

• All of the extras. Credit opens up the budget. It allows a homeowner to buy the job he or she really wants by structuring it as a series of monthly payments.
• The money’s there. You’re going to get paid if the job is completed. You’re not at risk of homeowners suddenly running out of money, or holding back because they’ve found a reason not to like the way you’re doing things.
• Competitive advantage. If your competition is the one-truck operator, chances are good that he doesn’t offer financing.
• No money down. Most remodelers want a deposit to get the job started. Consumers may balk. Financing means you don’t need a deposit.

• Close more business. Price is the biggest objection to closing. You’ve just removed it.

Make It Easy To Say Yes

These days, it’s easy to apply for financing. Once the nature of the project and the scope of work are agreed to, the homeowner can fill out the form and the contractor can either call it in or transmit it via mobile device. Credit approval generally comes in seconds. Before then:

• Preload financing into the conversation. Mention early in the sales appointment that your company offers a variety of financing plans with whoever your lender is. Then let it sit.

• Offer options. Financing is the next logical step once you’ve presented a proposal and a price. Don’t say, “Would you like to finance the job?” Instead ask, “What kind of monthly payment can you afford?” Or, “If you were to consider one of our financing plans, here’s what your payments would be at our _____ fixed rate.” Then offer other options.

Essentially what you’re doing is giving them a way to say yes to your proposal.