Top 5 Reasons to Offer Financing to Your Customers

Your home service business should offer your customers financing as a payment method in addition to cash, check, and credit card. The benefits of having this in your tool bag are huge and can lead to increased profits, more customers, and excellent brand recognition.

We compiled 5 of the top reasons your home service business should start offering financing to customers today.

1. Increase average ticket size: Customers are most likely to say yes to higher-priced equipment or add an additional service to their job when they have the option to finance. Financing can help make your customers feel more comfortable saying yes to a higher-priced, better-quality HVAC system since they can pay overtime, meaning more money in your pocket.
   • If your company offers a Good, Better, Best approach to selling, you are likely to see more customers selecting the Best repair option since they will not have to pay for everything up front. This will benefit your customers because they can properly fix whatever has broken, and your business will see an increase in profit. 
   • One Hour Heating & Air Conditioning in Medina, OH, saw a 61% increase in HVAC sales when it started offering BuyFin Consumer Financing. Its director of Marketing and Operations, Jacob Schlegel, said, “We offer three repair options to our customers—Need to Do, Should Do, or the Complete Solution. We are getting many more people doing the Complete Solution, which has helped boost our average ticket size.”
2. Close more jobs: Often, customers do not have the cash on hand to pay for a new water heater or fix their pool equipment when it breaks. When you offer financing, you are offering affordable monthly payments for these costly but necessary repairs for your customers. This will help boost your sales because people will feel confident and comfortable signing on the dotted line to get the work done.
3. Develop customer loyalty: Offering financing options to your customers can help your business increase customer satisfaction. Happy customers lead to more positive reviews for your business, a higher chance they will become repeat customers, and a chance they will recommend your company through word-of-mouth advertising.
4. Boost your positive reviews: Happy customers are more likely to leave a positive review about your business. Financing can also lead to happy customers because it gives them the ability to pay for necessary repairs. Especially in today’s economy, being able to pay overtime is something your customers will appreciate.
5. Competitive advantage: Financing can help your business stand out from the competition. Customers are more likely to choose a company that offers financing options rather than one that requires upfront payment.

If a customer is between two companies – one that offers financing and one that does not – they may be more inclined to go with the business that provides financing to ease any financial burden associated with the cost of the repair. This is one easy way to differentiate your business from competitors in your local market. Make sure you advertise that you offer financing so you do not miss out on potential customers.

If you want to learn more about how BuyFin Consumer Financing can help your business grow by increasing average ticket size and closing more jobs, contact us today.