Flexible finance grows home improvement sales - Bathroom & Kitchen Update – for new and existing bathroom & kitchen products

Flexible finance grows home improvement sales

Comment by NICK EGDELL, Managing Director, HomePro Group

Published: 08 May, 2009

Today all major home improvement companies realise the numerous benefits of offering a point of sale finance facility to their customer base. By making it easy for potential customers to finance their home improvements, company turnover and profit can be substantially increased.

Such finance packages - which do not expose the providing retailer to risk or exposure - improve ‘control' of sales, deal ‘closures', cash flow; and sales and profit values.

For consumers, finance packages deliver convenience, affordability, flexibility and protection under the auspices of the Consumer Credit Act 1974 (CCA) - all combining to deliver better business for, and enhanced confidence in, their chosen tradesperson.

Offering finance to homeowners is an established way of increasing and growing sales by home improvement businesses.

In the first instance, finance allows the installation professional to better control the sales process, as customers do not have to source payment elsewhere - reducing the possibility of mind-changing and under-bidding by competitors.

Similarly, conveniently structured payment terms give trades the chance to provide services to customers who might not otherwise have funds ready-to-hand. As customers are ‘price conditioned' to monthly costs rather than project totals, they are also less likely to skimp on their project - with order values consequently being higher than cash-paid equivalents; and typically by around 20%.

Cash flow is also improved as the project finance is paid direct to the trade professional - obviating the possibility of slow or bad payers - while providers have an opportunity to earn commission on the finance packages taken by their customers.

Terms should be flexible, allowing for lump sum and monthly overpayments delivering customers flexibility and convenience over the cost and duration of the agreement.

For larger businesses, the opportunity exists for companies to create their own finance brand if required, delivering a seamless corporate presentation from quote to closure.

Other methods of funding home improvements may be time consuming, attract fees, have impenetrable paperwork and cause delays in delivering monies.

For further information, please contact 0870 8505 136 or visit www.homepromoney.co.uk