This is where second look financing can help - it’s a financial service provided by companies who can take another look at clients with low credit scores and approve them based on other financial considerations or factors that a credit score doesn’t capture. Smart Home PRO's platform gives you the tools to offer second look financing, even for customers with FICO scores in the mid 500's.
It’s a great way to help people who can pay but have less than ideal credit purchases the HVAC servicing they need, and a great way for HVAC contractors to gain a competitive advantage by accessing a market that other contractors can’t reach. Tell your story. Use catchy text, bullets, links and more to bring your words to life.
Even if an air conditioning contractor has financing options available, another barrier to purchasing is low credit scores. A significant percentage of Americans have a FICO score that’s below 700, meaning they wouldn’t qualify for the financing options they need. According to a recent FDIC study, 21% of people in households making 50,000 to 75,000 a year don’t qualify for traditional financing. This means that a large percentage of the market for HVAC systems is untapped unless contractors can provide an alternate solution.
Upgrading an HVAC system can have a financial payoff for homeowners facing larger than usual electricity bills. A more efficient system is more cost-effective to run, meaning it’s often a better long-term financial decision to upgrade an air conditioner than it is to continue paying to run an older one. When someone is able to upgrade their HVAC unit with a prime financing option, they can often postpone their initial payment for a few months. The lower cost of running a better system will make it easier to save for payments, which may be a better option than paying more to run an inefficient system until they can afford the cost up front.
Since a new HVAC system is costly, it’s often a difficult decision whether or not it’s best to upgrade. Although it’s best to replace it before it fails, often people think they can’t afford to do so until it actually does. Then it’s an emergency purchase, and proper financing options can help in this type of urgent situation. When HVAC contractors are able to offer prime and second look financing options, the summer heat doesn’t have to be deadly, and contractors can provide top-quality solutions for more people that need them.
At Smart Home PRO, an Account Manager works one-on-one with the contractor to provide their clients with affordable financing. Assisting your customer and telling them up front that you’re partnered with a company to help them finance their new HVAC system can be the difference between getting a job and not getting one. On top of that, Smart Home PRO requires no upfront fees from their contractors. Sign up today to offer your clients one more avenue to their HVAC system!
- Posted October 15, 2018 by Charles Silberman