Funding a construction business isn’t easy. Your pay depends on a completed project, but your employees expect a regular salary, and, of course, there are the input costs of materials and supplies.
Providing home improvement financing for contractors at the point-of-sale (POS) is often crucial for construction enterprises to generate revenue. If you’re looking for more information about financing for contractors, check this out.
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A few benefits of tailored payment solutions are as follows:
1. Increasing the Average Order Value
Customers have more time to pay off construction services through POS financing, allowing them to purchase higher-quality (i.e., more expensive) products and services. This option results in a boost in overall sales and average order value (AOV).
When a contractor increases a potential customer’s purchasing power, that customer is more inclined to get as much out of that transaction as they can.
2. Driving More Sales
The endgame is increasing sales, and consumer financing solutions provide nearly limitless possibilities to make that happen. When customers can apply for loans in real-time at no additional cost and with flexible payment plans, they are more likely to do business.
As mentioned earlier, some customers do not have the resources to pay up-front for big-ticket items such as replacement appliances or a new porch.