Your Financial Toolbox: Why Flexible Funding Options Are Essential for Contractors
October 4, 2021
As the saying goes, it’s usually a good idea to expect the unexpected (or something of that nature). Nowhere can that ring truer than in the world of home improvement projects. From material backorders to inclement weather and so much more, honestly preparing homeowners for the unforeseen realities of home projects and the impact they have on timelines and (most importantly) budgets is an essential part of a contractor’s job.
That’s why more and more are introducing additional flexible funding options to their (financial) toolboxes. The right financing options can help both contractors and homeowners more easily navigate any schedule or budget-busting hurdle that arises by providing oh-so-important agility with critical features.
Whether it's a week-long electrical repair or a foundation fix requiring months, 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 it 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 a monthly payment plan that can easily adapt to those changes. This allows contractors to clearly map out regular payments — providing 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.
If you’re recommending a financing option that doesn’t include a digital application process to 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 alerting them once their loan is approved — all online. Another benefit? Digital-friendly lending also allows you and your customers to easily track and manage on-the-go as projects move forward.
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 person is you: the contractor. 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 unexpected may sound like an impossible task, but it’s one that contractors who deal with the complexities of electrical, HVAC and plumbing systems are well versed in. And just like you plan for each and every possibility for 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 not only keeps them confident in the project, it ensures you’re paid on time regardless of the twists and turns that come your way.
Ally Lending could have the solutions you need to provide customers with the flexible financing they need.
Change is inevitable in all things, and when it comes to home construction projects, it’s simply part of the process. Whether it’s a homeowner’s request, a contractor suggestion, or an unforeseen hurdle following a home inspection, change orders are an essential piece of the home project process.
If home improvement television networks have taught us nothing else, it’s that the one critical skill all homeowners need is knowing when to call in the professionals. Whether it’s a (not so) quick fix or a full-blown renovation, without the right skillset, what starts as a DIY project can quickly become a contractor rescue mission.
As the world begins to emerge from the pandemic, its effects are still being widely felt. For nearly all contractors, a stalled supply chain is creating big challenges. From lumber to steel to copper, many of the most-used supplies are significantly delayed or completely unavailable.