Stimulus money will be used to reduce small-business lending fees and guarantee SBA loans. Take our poll on SBA loans. More
How the credit crunch has affected the way home improvement companies do business More
Home improvement companies that offer financing adjust to tighter credit standards and smaller loans. More
If financing is something you've never thought much about, keep reading. Our lead feature, "Custom Fit," is a primer on what kind of financing products are available and how they match up with different customer types. "Same-as-Cash" takes an in-depth look at what it takes to make a zero-percent financing offer work -- and what might cause it to backfire. Finally, in "Second Chance," we provide answers about subprime lending. The mortgage crisis in the housing markets is a special case, but second-tier financing isn't as risky as all the headlines make it seem. More
Retailers such as The Home Depot and Best Buy have found deferred-interest "same-as-cash" credit promotions an effective way to increase sales. The store lets the customer walk away with the purchase for no money down, and agrees to not charge interest if they pay in full before an agreed-on deadline, which could be 30 days, 6 months, or 1 year from the date of purchase. More
Most contractors find that people who finance home improvements tend to spend more than those who pay cash. Contractors who understand the various types of credit products and know how to present them will be more likely to lead the customer to make the decision to finance. More
As property values fall nationwide and lenders put more scrutiny on borrowers, more of your customers may get turned down for financing from first-tier lenders such as Wells Fargo or Bank of America. But that doesn't have to put them out of the game. Second-tier, or “subprime,” lenders specialize in loaning money to people who first-line lenders reject. A relationship with one or more of these companies, along with a system for managing the sales team and the homeowners, can often save the sale. More
Retailers such as The Home Depot and Best Buy have found deferred-interest “same-as-cash” credit promotions an effective way to increase sales. The store lets the customer walk away with the purchase for no money down, and agrees to not charge interest if they pay in full before an agreed-on deadline, which could be 30 days, 6 months, or 1 year from the date of purchase. More
