Eddie Jones, of Big City Heating & Air, ran into a bit of a problem with his last customer. Janet Miller had paid for an air conditioner and installation job by choosing a two-year payment option Eddie offered her. Trouble was, his lender wasn’t really a lender — it was just one of those third-party brokers — so when there was a glitch in the loan payment, Janet called Eddie, Eddie called his loan processing service, and the service told Eddie to call the actual bank funding the loan — whichever one happened to own the loan this week. So, Eddie told that to Janet, and Janet was an unhappy customer. Talk about getting the runaround. Not to mention harming your own reputation thanks to the company you keep.

There are many players in the home improvement lending game these days, but some are simply a smarter choice than others. Not every organization offering payment options is a chartered bank, and that can make a critical difference between a smooth loan experience and a headache for you and your customer.

So, why should an HVAC contractor work with a chartered bank? Here are three key reasons:

1. You get paid — Get your money with no long-term issues in the financing process, because you’re working with the actual lender. This means the lender funds the loan with its own capital, and services the loan. Fast, easy, regular payment to you is critical to managing your cash flow.
2. A Consistent Relationship of Trust — When you work directly with a regulated bank, you know who to talk to if something goes wrong, and they can mediate any issues that may come up. It’s even more advantageous if your lender assigns you a dedicated person who handles your account.
3. Confidence — A chartered bank that’s Member-FDIC means the lender is subject to all federal and state regulations. There’s real oversight, so you can be confident the lender will do what they say, because they’re highly government-regulated.

A regulated bank may offer unsecured loans with no hidden fees, and a variety of loan products to meet your customers’ needs — including products designed to win bids, like true same-as-cash loans. Be sure to check out your options and work with a home improvement lender that’s an actual bank to grow your business and help you create a legacy.