Choosing the right water softener financial program can be a challenge for many businesses.
Partnering with a third-party lender that offers solutions tailored to your specific needs plays a key factor in increasing your customer base and your revenue flow. On the other hand, choosing the wrong partner can hold your organization back and end up doing more harm than good. So, making the right choice is critical.
It’s not uncommon to see organizations partnering with big credit approval companies that end up rejecting many of their customers' applications. That not only stops them from growing but also ends up creating a negative image around their brand.
The Demand for Water Softener Service Financing
With whole-house water filtration systems costing over $2,000 on average, the need for homeowners and small businesses to spread the cost over time arises. When they see a price and bid proposal, they often turn down these projects or search around for other alternatives and your revenue is left unchanged.
As you may know, many of the other alternatives, also known as your competitors offer customers extra benefits with the ability to finance the purchase.
In order to remain competitive, it’s key to offer competitive funding options to make it easier for them to enter into a contract with you and go forward. This is especially true if the renovation is intended to increase the subject value of their property and they intend to sell it soon after it is finished.
How to Choose the Best Financing Company
To choose the best out of the numerous water softeners funding options companies out there, there are certain criteria that should be considered. Things to pay attention include:
- Ease of application.
In a world with numerous competitions, one thing you wouldn’t want to happen is your company losing customers due to its tiresome process of loan and financing option applications. You have to partner with a business that provides close to an instant and very fast credit decisions for your clients. This factor is just as important as choosing a partner in your niche.
- A niche-based partner.
This is quite an important factor to consider when seeking for partnership. A specialized partner is one that provides financing options for majorly your niche and in such case will be easier to get access to and you can enjoy certain flexibility as a result of this. Another point to note is that a partner in your niche would have had experiences and contact with similar companies and will be of better service to your business.
- How fast the company releases funds.
Your company needs cash to run and cater to new customers and the choice of your partner is a strong factor here. Your financial option should be able to give access to funding once the customer confirms the purchase of your services.
- Flexibility of the loan repayment.
Beyond the access to funding and loans, a great factor to also consider is how flexible the payment is in terms of the time frame and the interest rate. This is usually a case of trade-off and would need to be properly considered, as a short window may not be favorable for the customer and most people would prefer a longer time rate for an easy repayment system.
How this Decision Will Impact your Business
Water treatment systems that partner with third-party financing dealers that specialize in the water softeners industry enjoy sustainable results faster. Among the many advantages to your company are:
- Contact more customers - Simply by allowing your homeowners to pay in convenient monthly installments, you can now reach out to customers who previously couldn't afford to invest in a costly water softener project. This can serve as a form of free promotion.
- Engage on repeated deals - Homeowners who have had a successful water purification treatment are more likely to return to you for subsequent services such as maintenance, filters, and other related items. These projects are only feasible because of the flexible payment system.
- Receive referral - Funding loans frequently result in further referrals and promotions from friends and family.
- Set yourself apart from the competition - Don't be like the other dealer who doesn't offer financing loans. Water treatment can be prohibitively expensive, especially when additional plumbing, filtration and alterations are required. By offering payment plans on your homeowners' terms and getting paid in full right away, you can contact and convert more leads into purchases and set yourself apart from your competitors for free.
- Close larger deals - Larger projects and more projects are now possible because customers can purchase them.
- Receive quick payment - After the installation is completed, the full project quote is paid. This makes it easier to manage the cash flow system.
