As a contractor, you know that sometimes the hardest part of your pitch isn’t helping your customer understand how a roof, window, door, or HVAC replacement will improve their home – it’s helping them figure out how to pay for it. Home improvements can be expensive, and sticker shock can be a major hurdle to overcome with some prospective customers.
That’s why home improvement financing can be an invaluable part of your toolkit. While some homeowners might prefer to pay cash or rack up miles on their credit cards, a new survey from Citizens Bank and Mintel shows that giving customers appealing point of sale financing options can help you significantly expand your potential customer base – and close more deals.
Point of Sale Appeal
Released in November 2018, the findings from the inaugural Citizens Bank Point of Sale Survey include some striking numbers:
- 76% of U.S. consumers are more likely to make a retail purchase if a payment plan backed by a simple and seamless point of sale experience is offered
- 62% of consumers would prefer fixed monthly plans with clear payment terms
- 66% of consumers feel that they have enough credit cards and prefer not to open more just to make a big purchase
It’s not necessarily surprising that consumers value having financing options, but 76% is a huge, eye-opening number. How many other sales process changes can you make that would increase your close rate for over three quarters of prospective customers? It’s also worth noting that home improvement projects were one of the most popular types of purchases for point of sale financing options included in the survey, along with electronics, appliances, and automotive repair.
What might be more surprising is the degree to which the survey reveals a dissatisfaction with current credit card financing options. Credit cards have played a growing role in home improvement financing due to the rise of no-interest promotions and greater speed compared to home equity financing – but average credit card interest rates can be higher than personal loans, and much higher if purchases aren’t paid back within the promotional period.
This dissatisfaction makes that 76% number less surprising. After all, if home equity financing is too slow and cumbersome to apply for, and we’re already drowning in (potentially high interest rate) credit cards, it’s clear that there’s a big need out there for something better.
Simple Home Improvement Financing? Mosaic Has an App for That.
Building that “something better” – a way for contractors to offer a simple, point of sale financing solution for home improvement projects – has been Mosaic’s obsession over the past year. Mosaic has taken what they’ve learned from building an industry-leading home solar financing platform to create a new mobile app that provides an even better point of sale financing experience for home improvement projects, with features including:
- Simple process and clean design
- Instant credit decisions
- Interactive payment estimator
- Start proposals with just a phone number
- Tools to manage existing jobs and customer pipelines
- Ultra-responsive customer support and best-in-class training
These features – and a lot more – are delivered through a user-friendly interface that’s compatible with all of your devices, ensuring you can run a smooth sales process when you’re out in the field.
Beyond just the simple, streamlined app experience, home improvement loans through Mosaic offer other important advantages compared to other financing options. Compared to other home equity financing options, financing through Mosaic’s platform is:
- Faster than home equity financing
- Not based on how much of your mortgage you’ve paid off (unlike home equity financing)
- Lower interest rates than credit cards
- “Same as cash,” deferred-interest financing option for purchases paid off within the promotional period
- A connection to a network of trustworthy, vetted pro contractors
There’s no such thing as a one size fits all financing solution, of course – certain customers will still prefer traditional options like HELOCs, or they might have funds set aside for an all-cash purchase. However, home improvement loans through Mosaic offer a distinct value proposition compared to other options, and the ability to offer them can help you close deals with that 76% of homeowners that are looking for better point of sale financing choices.
Pro Contractors Wanted
All in all, Mosaic’s point of sale app is a game-changer for contractors because it makes the financial part of any home improvement project simple and seamless.
And if you’re a contractor and all of this sounds good to you, talk to Mosaic today!