How to offer finance for plumbing engineers

Introduction: Why Offer Finance for Plumbing Engineers?

In today’s economic climate, many customers are looking for flexible payment options, especially when it comes to essential services like plumbing. Whether it’s an emergency repair or a full-scale bathroom renovation, the costs can be significant, and not everyone has the cash on hand to cover the expense. Offering finance options to your customers as a plumbing engineer can be a great way to make your services more accessible and attractive.

In this article, we will explore how you, as a plumbing engineer, can offer finance to your customers, why it’s a good idea, and how working with a finance broker like Kandoo can simplify the process.

Why Offering Finance Can Benefit Your Plumbing Business

1. Increase Your Customer Base

One of the biggest advantages of offering finance is that it opens your services to a wider audience. Customers who may have been deterred by the upfront costs of plumbing work are more likely to proceed with a project if they can spread the payments over a period of time.

For instance, a customer needing a new boiler installation may be reluctant to pay £2,500 upfront, but if you can offer them a finance plan where they pay £200 per month, the cost becomes much more manageable. By providing flexible payment options, you’ll be able to attract customers who otherwise may have gone elsewhere.

2. Boost Your Average Transaction Value

Offering finance options can also encourage customers to choose more extensive or higher-quality services. If a customer knows they can spread the cost, they may be more willing to opt for a full bathroom renovation rather than just a quick repair. This can increase your average transaction value, making each job more profitable for your business.

Moreover, by giving your customers the option to finance, you’re removing the barrier of cost, allowing them to consider upgrades or more comprehensive solutions they might not have considered if they had to pay in full immediately.

3. Stay Competitive in the Market

The plumbing industry is highly competitive, and offering finance can help you stand out from other plumbing engineers in your area. Many businesses, especially larger firms, are already offering finance options to their customers, and by not doing so, you could be missing out on valuable business.

Providing a flexible payment solution can give you a competitive edge, particularly in a market where customers are increasingly looking for more convenient and affordable ways to pay for essential services.

4. Improve Customer Satisfaction and Retention

Offering finance is not just about attracting new customers—it’s also about keeping your existing ones happy. By providing flexible payment options, you can reduce the financial stress on your customers, leading to higher satisfaction levels. Happy customers are more likely to leave positive reviews, recommend your services to others, and return to you for future plumbing needs.

Types of Finance Options You Can Offer

There are several types of finance options you can offer your customers, each with its own benefits. Understanding these options will help you choose the right solution for your business and your customers.

1. Interest-Free Finance

Interest-free finance is a popular option, as it allows customers to spread the cost of their plumbing work over a set period without paying any additional interest. This can be a particularly attractive option for customers who are looking to manage their cash flow without incurring extra costs.

Interest-free finance is typically offered over shorter periods, such as 6 to 12 months. While it may seem like you’re giving away free money, offering interest-free finance can result in more business and larger transactions, which can make it a worthwhile investment.

2. Low-Interest or Interest-Bearing Finance

If you want to offer longer payment terms, low-interest or interest-bearing finance options may be more suitable. These options allow customers to spread the cost over a longer period—sometimes up to 5 years—but with an added interest rate.

For customers who need to spread the cost over a longer timeframe, this can be an attractive option, even if they have to pay a small amount of interest. The key is to be transparent about the terms and make sure your customers fully understand the costs involved.

3. Buy Now, Pay Later (BNPL)

Buy Now, Pay Later schemes allow customers to defer payment for a set period, often up to 12 months. After this period, they can either pay off the balance in full or start making monthly payments, sometimes with interest.

BNPL can be an excellent option for customers who are facing an unexpected plumbing emergency and need time to gather the funds. However, it’s important to make sure your customers are aware of any interest charges that may apply if they don’t pay off the balance within the interest-free period.

How to Offer Finance: The Process

1. Partner with a Retail Finance Broker

The first step in offering finance to your customers is to partner with a retail finance broker who can facilitate the process. Kandoo, a trusted UK retail finance broker, is one such company that can help you offer finance to your customers without the need for you to become directly involved in lending.

Kandoo works with a wide range of lenders, providing your customers with access to competitive finance options. By partnering with Kandoo, you can offer finance solutions to your customers without the complexities of managing credit checks, agreements, or payments yourself. This allows you to focus on what you do best—providing excellent plumbing services—while leaving the financial side to the experts.

2. Integrate Finance into Your Sales Process

Once you’ve partnered with a finance broker like Kandoo, it’s important to integrate finance options into your sales process. Make sure your customers are aware that finance is available from the very beginning of your interaction.

You can include information about finance options on your website, in your marketing materials, and during customer consultations. It’s also a good idea to train your staff on how to explain the benefits of finance to customers and guide them through the application process.

3. Provide Clear and Transparent Information

When offering finance, transparency is key. Your customers need to fully understand the terms of the finance agreement, including any interest rates, fees, and repayment schedules. Make sure all information is clearly presented, and be available to answer any questions your customers may have.

Partnering with Kandoo can help ensure that your customers receive clear, straightforward information about their finance options. Kandoo’s online platform allows customers to easily compare different finance products and choose the one that best suits their needs.

4. Simplify the Application Process

The easier it is for your customers to apply for finance, the more likely they are to take advantage of it. Kandoo offers a simple, user-friendly online application process that customers can complete in just a few minutes. Once the application is approved, the funds are paid directly to you, and the customer can start repaying the loan according to the agreed terms.

By making the finance application process as smooth and straightforward as possible, you can enhance the customer experience and increase the likelihood of securing more business.

Why Choose Kandoo as Your Finance Partner?

Kandoo is a leading UK retail finance broker that specialises in helping businesses offer finance to their customers. Here are some reasons why partnering with Kandoo can benefit your plumbing business:

1. Access to a Wide Range of Lenders

Kandoo works with a variety of reputable lenders, giving your customers access to a wide range of finance products. This means your customers are more likely to find a finance option that suits their budget and needs.

2. Simple and Transparent Process

Kandoo’s online platform is designed to be simple and transparent. Customers can easily compare different finance options, and the application process is quick and straightforward. This makes it easier for you to offer finance without having to deal with complicated paperwork or processes.

3. Competitive Finance Rates

Kandoo partners with lenders that offer competitive finance rates, ensuring your customers get a good deal. This can make your finance offering more attractive and increase the likelihood of customers opting for finance over paying upfront.

4. FCA Regulated

Kandoo is fully regulated by the Financial Conduct Authority (FCA), giving you and your customers peace of mind that all finance products are compliant with UK regulations. This ensures that your customers are protected and that you are working with a reputable finance partner.

Conclusion: Offering Finance as a Smart Business Move

Offering finance to your customers as a plumbing engineer is a smart way to grow your business, increase your customer base, and boost your average transaction value. By partnering with a trusted retail finance broker like Kandoo, you can offer flexible, competitive finance options without the hassle of managing the lending process yourself.

Whether you choose to offer interest-free finance, low-interest finance, or Buy Now, Pay Later options, the key is to make the process as simple and transparent as possible. By doing so, you’ll not only attract more customers but also build long-term relationships based on trust and satisfaction.

By incorporating finance into your plumbing services, you can meet the growing demand for flexible payment options and stay ahead of the competition in a rapidly changing market.