Why flexible funding options are essential for contractors

As the saying goes: Expect the unexpected. Nowhere can this idea ring more true than in the world of home improvement projects. From material backorders to inclement weather and so much more, it’s essential that contractors prepare homeowners for the unforeseen realities of home projects. This includes the impact they have on timelines and, most importantly, budgets.

The good news is homeowners are ready to spend. According to the Joint Center for Housing Studies at Harvard University , home improvement spending reached $472 billion in 2022 and is expected to reach $485 billion by the end of 2023. This increase in spending reflects the growing demand for home improvement projects. Providing flexible funding options will be crucial to meet the financial needs of your customers.

The right financing options can help both contractors and homeowners more easily navigate any schedule or budget-busting hurdle that arises by providing agility.

Customized financing

Whether it’s a week-long electrical repair or a foundation fix requiring months of work, every project is unique. Being able to provide a financing solution with enough options to meet your customer’s individual needs is a must. Stalling or stopping a project due to budget issues is never an ideal option. Contractors and homeowners need to feel confident that if the scope of a project changes due to an unexpected wiring issue or rusting pipes, they have financial options that will allow them to keep moving forward.

With Ally Lending’s home improvement financing options , if the budget increases — with approval from the customer — you’ll be able to make changes to the requested loan amount (up to the max approved amount) before the loan is funded.

Personalized payment plans

Because budgets and plans can change throughout a project, a flexible funding solution needs to feature a monthly payment plan that can easily adapt to those changes. This allows contractors to clearly map out regular payments and provide full transparency. It also gives homeowners a clear trajectory, knowing that should plans change, there’s also flexibility. 

Ally Lending loans for repairs and renovations give contractors and providers flexible funding management tools, plus perks, like the ability to schedule your funding date once the project is complete. This protects customers from having to cancel and reapply as circumstances change, and from having to pay interest on a loan for a project that isn’t done yet. And for contractors, we provide the ability to approve transactions for funding up to 180 days. Funds are typically received just one or two days following the funding request.

Learn more: How home improvement financing options can help customers

On-the-go funding options

If you’re recommending a financing option that doesn’t include a digital application process for homeowners, it’s time to reassess your financing resources. Dealing with the finances of home renovation is stressful enough. Make it as simple as possible by giving your customers the ability to apply and manage their financing in a way that’s most convenient and comfortable for their needs.

With Ally Lending , customers can pre-qualify, sign documents and receive notifications that alert them once their loan is approved — all online. Another benefit? Digital friendly lending also allows you and your customers to easily track and manage everything on the go as projects progress.

Extra support (when you need it)

If something does go wrong, having a reliable resource to turn to can make all the difference. For kitchen renovation projects, HVAC repairs or plumbing overhauls, that resource is you. For financing solutions, it should be a reliable and robust customer care service. Having customer support with flexible hours is essential to grant both contractors and homeowners complete peace of mind.

Expect the unexpected

Planning for the unknown may sound like an impossible task, but it’s one that contractors like you are well versed in. And just like you plan for every possibility of every home construction project, it’s also important to prepare for all possible financial contingencies. Providing your customers with funding that’s just as flexible helps them feel more confident, and ensures you’re paid on time — regardless of the twists and turns that come your way.