You Should Offer Financing For Your Next Remodel. Here's Why.

Tips + Trends

Turning Prospects into Projects

As a home builder or remodeler, there are a number of ways to differentiate your company and earn a competitive advantage for your business. At CoConstruct, our goal is to help you streamline your project management process and convert more leads into clients. We’ve talked about some ways to manage your leads in The Admin Project. Now, let's talk about the money. At the end of the day, every client is looking for the best bang for their buck. If your remodeling company is able to offer competitive financing for your prospects, you might be able to secure more projects.


Get in the Game

The residential remodeling market in the United States has grown dramatically over the past decade. According to the Joint Center for Housing Studies at Harvard University, the market reached a high of $424 billion in 2017. Americans are spending more on home improvement, and it’s time for your building company to get in on the action. The same study also found that 33% of home improvement projects leveraged financing to pay for remodels in 2017. We know what you’re thinking - a lot has changed since 2017. For one, the coronavirus pandemic has likely put a lot of projects on hold. There is still always opportunity for your building company to provide value for clients. If you’re used to doing large custom builds, you may need to pivot and complete some smaller remodeling projects at a higher volume to keep your business moving forward.


How does it work?

Through CoConstruct’s unique partnership with Lightstream, your clients can access financing options for their projects right from the Proposals feature. Under “Financials”, select “Offer Financing” and you will automatically see applicable financing options when you save and preview your proposal. Clients can apply for financing on projects between $5,000 and $100,000. The process is straightforward and easy to implement. Financing through CoConstruct saves your clients time and energy because they won’t have to go to a bank to get a loan. Instead, your clients can simply check a box on your proposal to apply for a loan. For clients with good credit, there’s a good chance they’ll get approved that same day.


What is Lightstream?

Lightstream is an online lender that offers loans for auto and home improvement at low rates for people with good credit. The platform is a division of Truist Bank, a respected financial corporation out of Charlotte, North Carolina. We’ve done our research to make sure your clients are working with a reliable platform.


Financing a Remodel

If you’re a remodeler, financing is a great way for you to increase revenue and get more jobs. Many smaller remodeling projects often fall between $5,000 and $100,000, so you will likely have a few projects that qualify. When you first meet with a prospect to discuss their budget, be sure to mention that you offer financing as a payment option. This will set you apart from competitors early in the process. The bottom line is that clients want options, and the company that provides flexibility will earn a good first impression. Even if your potential clients decide against financing, they will still remember that you gave them the option. Over time, you’ll be able to share financing success stories with prospects to build their confidence.


Create Solutions

As a builder, you’re a “fixer”, and it’s important to always have a solution for your client. You need to respond quickly and effectively, ready to make their hopes and dreams a reality. Financing allows you to adapt to a new client’s ever-evolving taste throughout a project. At CoConstruct, our team is always looking for more ways to add tools to your toolbox so you’ll be ready to address new problems and create solutions.


If you want to learn more about financing and how you can start using it in your process, read more.


Want to learn more about CoConstruct's integrated construction management software?
Watch a demo
Or schedule time with a product expert

Author

Megan Sullivan
Megan Sullivan
Marketing

Megan manages the production of engaging, data-driven content that builds connections and helps builders + remodelers move businesses forward.

New to CoConstruct?

Find construction software features + learn best practices.