Offer finance for a windows, doors & conservatories business

Introduction to Offering Finance for a Windows, Doors & Conservatories Business

In today's competitive home improvement industry, providing finance options can significantly boost sales and customer satisfaction. Whether you run a business that specialises in windows, doors, or conservatories, offering finance can help customers afford larger projects, spread out payments, and make more confident purchasing decisions. In this article, we will explore the benefits of offering finance, the different types of finance available, and how partnering with a retail finance broker like Kandoo can help streamline the process for both businesses and customers.

Why Offer Finance?

Increased Sales Opportunities

One of the most compelling reasons to offer finance is the potential for increased sales. Many customers are interested in upgrading their homes with new windows, doors, or a conservatory but may not have the immediate funds available. By offering finance options, you allow customers to spread the cost over time, making it more affordable for them to undertake larger projects. This can lead to higher average order values and a greater number of completed sales.

Improved Customer Satisfaction

Customers appreciate flexibility, especially when it comes to financing large home improvement projects. By offering a range of finance options, you can cater to different budgets and financial situations. This improves customer satisfaction and can enhance your reputation as a business that is easy to work with. Happy customers are more likely to recommend your services to others, leading to positive word-of-mouth and repeat business.

Staying Competitive in the Market

The home improvement market is highly competitive, and many businesses already offer finance options to their customers. If you are not offering finance, you may be missing out on potential sales to competitors who do. Offering finance can help you stay competitive and ensure that you are not losing customers to businesses that provide more flexible payment solutions.

Types of Finance You Can Offer

There are several types of finance that can be offered to customers, each with its own advantages. It's important to understand the different options available so that you can choose the ones that best suit your business and customer base.

Interest-Free Credit

Interest-free credit is one of the most popular finance options. It allows customers to spread the cost of their purchase over a set period, usually between 6 and 12 months, without paying any interest. This can be a highly attractive option for customers, as they can spread the cost without incurring additional charges.

However, it's important to note that offering interest-free credit can come at a cost to the business, as you will typically need to absorb the interest charges. Despite this, many businesses find that the increase in sales volume more than compensates for the cost of offering interest-free finance.

Buy Now, Pay Later

Buy Now, Pay Later (BNPL) schemes allow customers to defer payment for a set period, typically between 3 and 12 months. At the end of the deferral period, customers can either pay the full balance or spread the cost over a longer period with interest. This option is appealing to customers who may not have the funds immediately available but expect to be able to pay in full at a later date.

BNPL schemes can increase sales by allowing customers to make purchases they may otherwise have delayed. However, it's important to ensure that customers fully understand the terms, particularly if interest will be charged after the deferral period.

Low-Interest Finance

Low-interest finance offers customers the opportunity to spread the cost of their purchase over a longer period, typically 12 to 60 months, at a reduced interest rate. This option is attractive to customers who are looking for a more affordable way to finance their home improvement project but may not be able to pay off the balance within the timeframe of an interest-free or BNPL scheme.

Offering low-interest finance can help you cater to a wider range of customers, particularly those who may be planning larger projects such as conservatories or full home window replacements. It can also help you generate additional revenue from interest payments, depending on the terms of the finance agreement.

Personal Loans

Some businesses choose to partner with finance brokers or lenders to offer personal loans to customers. These loans are typically unsecured and can be used for a variety of home improvement projects. Personal loans offer customers the flexibility to borrow a larger amount of money and spread the cost over a longer period, often with fixed monthly payments.

Personal loans can be a good option for customers who are planning extensive renovations, such as building a conservatory or replacing all the windows and doors in their home. Partnering with a reputable finance broker like Kandoo can help ensure that customers are offered competitive loan terms and a seamless application process.

How to Offer Finance to Your Customers

Offering finance to your customers doesn't have to be complicated. By partnering with a retail finance broker like Kandoo, you can provide a range of flexible finance options without the need to handle the financial administration yourself. Here's how the process works:

Partner with a Retail Finance Broker

The first step in offering finance is to partner with a retail finance broker. A broker like Kandoo can connect your business with a network of lenders, allowing you to offer a variety of finance options to your customers. Kandoo specialises in helping businesses in the home improvement sector, making them an ideal partner for a windows, doors, and conservatories business.

By working with a broker, you can avoid the complexities of managing finance applications and approvals in-house. Kandoo will handle the finance process on your behalf, ensuring that customers receive a smooth and professional service.

Display Finance Options Clearly

Once you have partnered with a finance broker, it's important to display the finance options clearly on your website and in your marketing materials. Customers should be able to easily see what finance options are available and understand the terms of each option. This transparency helps build trust and ensures that customers feel confident in their purchasing decision.

Make sure that your staff are also well-informed about the finance options available so that they can explain them to customers in-store or over the phone. Providing clear and accurate information will help customers choose the finance option that best suits their needs.

Integrate Finance into the Sales Process

Finance should be integrated seamlessly into the sales process. When discussing project costs with customers, be sure to mention the finance options available and explain how they can make the project more affordable. This can help overcome price objections and encourage customers to move forward with their purchase.

For example, if a customer is hesitant about the cost of a new conservatory, you could explain how they can spread the cost over 12 months with interest-free credit or take out a low-interest loan to finance the project over a longer period.

Ensure Compliance with Regulations

It's important to ensure that your business complies with all relevant regulations when offering finance. In the UK, businesses that offer finance must be authorised by the Financial Conduct Authority (FCA). If you partner with a finance broker like Kandoo, they will handle the regulatory requirements on your behalf, ensuring that your business remains compliant.

Make sure that all finance agreements are clearly explained to customers, including any interest rates, fees, and repayment terms. Customers should be fully informed before entering into a finance agreement to avoid any misunderstandings later on.

Benefits of Partnering with Kandoo

Kandoo is a UK-based retail finance broker that specialises in providing finance solutions for the home improvement sector. By partnering with Kandoo, you can offer your customers a range of flexible finance options, including personal loans, interest-free credit, and low-interest finance. Here are some of the benefits of working with Kandoo:

Access to a Wide Range of Lenders

Kandoo works with a network of reputable lenders, giving your customers access to a variety of finance options. This means that customers can choose the finance option that best suits their needs, whether they are looking for interest-free credit, a low-interest loan, or a buy now, pay later scheme.

Simple Application Process

Kandoo's application process is simple and straightforward, making it easy for customers to apply for finance. Customers can apply online or over the phone, and Kandoo will handle the rest. This hassle-free process ensures that customers can access finance quickly and easily, without any unnecessary delays.

Competitive Rates

Kandoo works with lenders to offer competitive rates on finance products, ensuring that your customers receive the best possible deal. By offering competitive finance options, you can attract more customers and increase sales.

FCA-Regulated

Kandoo is regulated by the Financial Conduct Authority (FCA), so you can be confident that all finance products are compliant with UK regulations. This ensures that your business remains compliant when offering finance to customers, giving you peace of mind.

Enhanced Customer Satisfaction

By partnering with Kandoo, you can offer your customers a professional and reliable finance service. This enhances customer satisfaction and helps build trust in your business. Happy customers are more likely to return for future projects and recommend your services to others.

Conclusion

Offering finance for a windows, doors, and conservatories business can significantly increase sales, improve customer satisfaction, and help you stay competitive in the market. By providing flexible finance options such as interest-free credit, buy now, pay later schemes, and low-interest loans, you can make home improvement projects more affordable for your customers.

Partnering with a retail finance broker like Kandoo simplifies the process of offering finance, allowing you to focus on running your business while providing customers with a seamless and professional finance experience. With Kandoo's help, you can offer a range of competitive finance options that meet the needs of your customers, leading to increased sales and long-term business growth.