Offer finance for a garden room business

Introduction

The popularity of garden rooms has surged in recent years, with more homeowners seeking to expand their living spaces without the hassle and cost of traditional extensions. Whether used as home offices, gyms, art studios, or even entertainment spaces, garden rooms provide a versatile solution for those looking to make the most of their outdoor areas. As a garden room business owner, this trend represents a significant opportunity for growth. However, one of the challenges you may face is offering flexible finance options to your customers, making it easier for them to invest in their dream garden space.

In this article, we’ll explore how offering finance for a garden room business can boost your sales, improve customer satisfaction, and help you stay competitive. We’ll also introduce Kandoo, a UK retail finance broker, and explain how their services can assist you in providing convenient and transparent finance solutions to your customers.

Why Offer Finance for Garden Rooms?

Garden rooms are a high-value investment, with costs often ranging from £5,000 to £30,000 depending on the size, design, and materials used. While many customers recognise the benefits of having a garden room, the upfront cost can be a significant barrier. By offering finance options, you provide a more accessible route for customers to purchase your products without having to pay the full amount upfront. Here are some of the key reasons why offering finance can be beneficial for your garden room business:

1. Increase Sales and Conversions

Offering finance can significantly increase your sales by making your garden rooms more affordable for a wider range of customers. Many people are more likely to make a purchase if they have the option to spread the cost over several months or years. In fact, studies show that businesses offering finance solutions often see a 15-30% increase in sales.

By breaking down the total cost into manageable monthly payments, customers are more inclined to commit to a purchase. This also encourages upselling, as customers may choose a higher-spec garden room or additional features when they have the flexibility of finance options.

2. Improve Customer Satisfaction

In today’s competitive market, customer satisfaction is key to long-term success. Offering finance options allows you to provide a more personalised and flexible service, which can improve your customers’ overall experience. Customers appreciate the ability to tailor their purchase to their budget and lifestyle, and finance options allow them to do just that.

Providing finance solutions can also enhance your brand reputation. Customers are more likely to recommend your business to others if they had a smooth and convenient buying process. Offering finance demonstrates that you understand their financial concerns and are willing to offer flexible solutions to meet their needs.

3. Stay Competitive in the Market

With the rise in demand for garden rooms, competition in the market is increasing. More businesses are entering the sector, offering a variety of garden room designs and price points. Offering finance can help differentiate your business from competitors who do not provide this option.

By partnering with a reputable finance provider, you can offer a professional and seamless financing experience, which can give your business a competitive edge. Customers are more likely to choose a business that offers flexible payment options, especially when making large purchases like a garden room.

4. Enhance Cash Flow for Your Business

While finance options benefit customers by making payments more manageable, they can also help your business maintain a steady cash flow. When you partner with a finance provider, you typically receive payment upfront from the finance company, while the customer pays in instalments. This means you don’t have to wait for customers to complete their payments to receive your money.

This upfront payment allows you to reinvest in your business, purchase materials, or pay your staff without delay, which is especially important when managing multiple projects or dealing with seasonal fluctuations in demand.

What Types of Finance Options Can You Offer?

There are several types of finance options that you can offer to your customers, depending on their needs and your business model. Here are some of the most common types of finance available for garden room purchases:

1. Interest-Free Credit

Interest-free credit is a popular option for customers as it allows them to spread the cost of their purchase over a set period without incurring any additional interest charges. Typically, the repayment term is between 6 to 24 months, and the customer pays the same amount as they would have paid upfront, just spread over several instalments.

Offering interest-free credit can be an attractive selling point for customers, as they know they won’t be paying more than the initial cost of the garden room. However, as a business, you may need to absorb the interest costs, so it’s important to factor this into your pricing structure.

2. Low-Interest Finance

Low-interest finance offers customers the option to spread the cost over a longer period, usually up to 5 years, with a small interest charge. This can be a good option for customers who prefer lower monthly payments, even if it means paying slightly more overall.

For your business, low-interest finance can be a more sustainable option than interest-free credit, as you won’t need to cover the full cost of interest. Partnering with a finance broker, like Kandoo, can help you offer competitive interest rates that are appealing to customers.

3. Buy Now, Pay Later

Buy Now, Pay Later (BNPL) schemes allow customers to take home their garden room immediately and start paying for it after a set period, typically 3 to 12 months. This gives customers more flexibility, especially if they need time to organise their finances before committing to monthly payments.

BNPL options are increasingly popular with consumers, particularly for large purchases. Offering this option can attract more customers who may be hesitant to make a large upfront payment but are confident they can afford the garden room in the near future.

How Kandoo Can Help Your Garden Room Business

When it comes to offering finance options, partnering with a trusted and experienced finance broker is crucial. Kandoo is a UK retail finance broker that specialises in helping businesses like yours provide flexible finance solutions to their customers. Here’s how Kandoo can support your garden room business:

1. Access to a Wide Range of Lenders

Kandoo works with a wide network of reputable lenders, which means they can offer a variety of finance options to suit different customer needs. Whether your customers are looking for interest-free credit, low-interest finance, or Buy Now, Pay Later options, Kandoo can help you find the right finance solution.

This flexibility allows you to cater to a broader range of customers, increasing your potential sales and helping more people invest in your garden rooms.

2. Simple and Transparent Process

Kandoo prides itself on offering a simple and transparent finance process. Customers can apply for finance through a quick and straightforward online application, and Kandoo ensures that all terms and conditions are clearly communicated. This level of transparency helps build trust with your customers, ensuring they feel confident in their finance agreement.

Additionally, Kandoo handles all the paperwork and administration, allowing you to focus on running your business without getting bogged down in finance-related tasks.

3. Regulated by the FCA

As a fully regulated finance broker, Kandoo adheres to the strict guidelines set out by the Financial Conduct Authority (FCA). This ensures that all finance options offered through Kandoo are fair, transparent, and compliant with UK regulations. By partnering with a regulated broker, you can offer finance with confidence, knowing that your customers are protected and that your business is operating within legal requirements.

4. Improved Customer Experience

Kandoo’s user-friendly platform and customer support services ensure that your customers have a positive experience when applying for finance. The process is designed to be quick and hassle-free, with most customers receiving a decision within minutes. This seamless experience can help enhance your brand reputation and encourage repeat business.

How to Implement Finance Solutions in Your Garden Room Business

Now that you understand the benefits of offering finance and how Kandoo can support your business, the next step is to implement these solutions effectively. Here are some tips for successfully incorporating finance options into your sales process:

1. Promote Finance Options on Your Website

Make sure that your finance options are clearly advertised on your website. Include information about the types of finance available, the repayment terms, and any interest rates or fees. You can also include a finance calculator that allows customers to see how much their monthly payments would be based on the total cost of their garden room.

2. Train Your Sales Team

Your sales team should be knowledgeable about the finance options you offer and be able to explain the benefits to customers. Make sure they are trained to answer any questions about the finance process and can guide customers through the application process with Kandoo.

3. Offer Finance at the Point of Sale

When discussing garden room options with customers, make sure to mention finance as an option early in the conversation. This allows customers to factor in their payment options when making decisions about the size, style, and features of their garden room.

4. Follow Up with Customers

After a customer has been approved for finance, follow up with them to ensure they are satisfied with the process and their purchase. This can help build long-term relationships and encourage positive reviews and referrals.

Conclusion

Offering finance for your garden room business can be a game-changer, helping you attract more customers, increase sales, and improve customer satisfaction. By partnering with a reputable finance broker like Kandoo, you can provide flexible, transparent, and regulated finance solutions that meet the needs of your customers. With the right finance options in place, you can grow your garden room business and continue to thrive in an increasingly competitive market.