How to offer finance for windows, doors & conservatories

How to Offer Finance for Windows, Doors & Conservatories

Offering finance for home improvement projects such as windows, doors, and conservatories can be a great way to attract more customers and increase sales. Many homeowners are eager to upgrade their properties but may not have the upfront capital to fund such improvements. By providing a finance option, you can make it easier for them to commit to a purchase and spread the cost over time.

This article will guide you through the process of offering finance for windows, doors, and conservatories, including the benefits, key considerations, and how to implement a successful finance solution. We will also highlight how partnering with a trusted finance broker like Kandoo can simplify the process and offer additional advantages.

Why Offer Finance for Windows, Doors & Conservatories?

Offering finance is a win-win for both businesses and customers. Let’s explore some of the primary reasons why this approach can be highly beneficial.

1. Increase Sales and Conversion Rates

Home improvements such as new windows, doors, and conservatories can be a significant investment, often costing thousands of pounds. Many potential customers may hesitate to make such a large upfront payment. Offering finance gives them the flexibility to spread the cost over manageable monthly payments, which can help remove financial barriers and increase the likelihood of closing a sale.

2. Attract a Broader Customer Base

By offering finance, you open the door to a wider range of customers. Homeowners who might not have considered an improvement project due to budget constraints will now have an option to fund it through affordable monthly instalments. This can help your business reach customers who may not have been able to afford the full payment upfront.

3. Improve Customer Loyalty

Providing a finance option can enhance your customers' overall experience by giving them more flexibility and control over their purchases. This can help build trust and loyalty, encouraging repeat business and positive word-of-mouth referrals. Happy customers are more likely to recommend your services to friends and family, helping to grow your business further.

4. Stay Competitive

Many businesses in the home improvement industry already offer finance as part of their sales strategy. If your competitors are offering finance options and you are not, you could be losing out on potential sales. Providing a finance solution can help you stay competitive and ensure that your business is on par with others in the market.

Types of Finance Options for Home Improvements

Before offering finance, it's important to understand the different types of finance options available for customers. Each type of finance comes with its own set of terms and conditions, so it’s essential to choose the one that best suits your business and your customers' needs.

1. Interest-Free Credit

Interest-free credit is one of the most attractive options for customers. It allows them to spread the cost of their purchase over a set period without incurring any interest charges. This option is particularly appealing for larger purchases such as windows, doors, and conservatories, as it makes the project more affordable for the customer without increasing the overall cost.

However, offering interest-free credit can be costly for your business, as you will need to absorb the interest cost. It's essential to carefully calculate whether this option is financially viable for your business in the long term.

2. Low-Interest Credit

Low-interest credit allows customers to spread the cost of their purchase over time with a reduced interest rate. While not as appealing as interest-free credit, this option is still attractive to customers who want to avoid paying the full amount upfront. The lower interest rate makes the repayment terms more manageable, and your business won’t have to absorb the full cost of interest.

3. Buy Now, Pay Later

Buy now, pay later schemes give customers the flexibility to make a purchase and delay their payments for a set period, usually between 3 to 12 months. After the initial period, they can either pay the full amount or start making monthly instalments with interest. This option is ideal for customers who may not have the funds available immediately but expect to be in a better financial position in the near future.

4. Personal Loans

Some customers may prefer to take out a personal loan to fund their home improvement project. This option allows them to borrow a lump sum, which they can then use to pay for the windows, doors, or conservatories upfront. While the loan itself will typically come with an interest rate, customers can shop around for the best deal, and it provides them with the flexibility to choose their repayment terms.

How to Implement a Finance Solution

Offering finance for windows, doors, and conservatories is not as simple as just adding an option to your website or sales pitch. It requires careful planning, regulatory compliance, and a clear understanding of your customers' needs. Below are the key steps to implement a successful finance solution for your business.

1. Partner with a Finance Provider

The first step in offering finance is to partner with a reliable finance provider or broker. Finance providers will offer the loans or credit agreements to your customers, allowing them to spread the cost of their purchases. As a business, you will receive the full payment upfront from the finance provider, while the customer repays the loan over time.

Partnering with a reputable finance broker like Kandoo can make this process much easier. Kandoo is a UK-based retail finance broker that specialises in helping businesses offer finance solutions to their customers. They work with a panel of trusted lenders, offering a range of finance options to suit different customer needs. By partnering with Kandoo, you can offer a variety of finance packages without the need to manage the lending process yourself.

2. Ensure Compliance with FCA Regulations

When offering finance to customers in the UK, it is essential to comply with the Financial Conduct Authority (FCA) regulations. The FCA regulates how businesses can promote and offer credit to consumers, ensuring that all practices are fair, transparent, and responsible.

If you plan to offer finance directly to customers, you will need to be authorised by the FCA or work with a finance provider that is FCA-regulated. Partnering with a broker like Kandoo can help ensure that you remain compliant with all relevant regulations, as they handle the credit agreements and ensure that the process is conducted in line with FCA guidelines.

3. Train Your Sales Team

Your sales team plays a crucial role in presenting finance options to customers. It’s essential that they are well-trained in explaining the benefits and terms of the finance packages available. They should be able to answer any questions customers may have about repayment terms, interest rates, and the overall process.

A well-informed sales team can help customers feel confident in their decision to use finance, making it more likely that they will proceed with the purchase. Ensure that your team is familiar with the finance options provided by your chosen broker or finance partner, such as Kandoo, and that they can present the information clearly and transparently.

4. Promote Finance Options Effectively

Offering finance is only beneficial if your customers are aware of it. Make sure to prominently advertise your finance options both online and in-store. This can include:

• Displaying finance options on your website’s product pages.
• Including finance details in email marketing campaigns.
• Using in-store signage to promote finance availability.
• Training staff to mention finance options during consultations or sales discussions.

Highlight the affordability and flexibility that finance offers, and make it clear that this option is available to help customers complete their home improvement projects without the need for a large upfront payment.

5. Provide Clear Terms and Conditions

When offering finance, transparency is key. Make sure that all terms and conditions are clearly communicated to customers, including the interest rate (if applicable), repayment period, and any potential fees or charges. Customers should fully understand their obligations before agreeing to a finance deal.

Partnering with a broker like Kandoo ensures that customers are provided with clear and accurate information about their finance agreements. Kandoo’s team of experts will guide customers through the process, ensuring that they understand the terms of the loan before proceeding.

How Kandoo Can Help

Kandoo is a leading UK-based retail finance broker that specialises in helping businesses offer finance solutions to their customers. By partnering with Kandoo, you can offer a range of finance options to your customers without the need to manage the lending process yourself.

Kandoo works with a panel of trusted lenders, providing access to a variety of finance packages, including interest-free credit, low-interest loans, and buy now, pay later schemes. They are fully FCA-regulated, ensuring that all finance agreements are handled in compliance with UK regulations.

Partnering with Kandoo offers several benefits for your business:

• Simplified Process: Kandoo handles the entire finance process, from application to approval, allowing you to focus on your core business activities.
• Customer Support: Kandoo’s team of finance experts is available to assist your customers with any questions or concerns, ensuring a smooth and transparent process.
• Competitive Rates: Kandoo works with a range of lenders to provide competitive finance options, helping your customers find the best deal for their needs.

Conclusion

Offering finance for windows, doors, and conservatories can be a powerful tool for growing your business and increasing sales. By partnering with a reputable finance broker like Kandoo, you can provide flexible finance options to your customers, making it easier for them to invest in home improvements. Ensure that you comply with FCA regulations, train your sales team, and promote your finance options effectively to maximise the benefits of offering finance.

With the right approach, offering finance can help you attract more customers, increase conversions, and stay competitive in the home improvement market.