Financing Opportunity From Newest MRA Member

When homeowners are planning a new metal roof project, a major part of the conversation is about the project cost. The cost of a new metal roof comes with several benefits such as minimal maintenance, energy efficiency, and durability just to name a few. A great way to ease any concerns about the cost of the project is offering consumer financing as a payment option.

Consumer financing programs allow contractors to help homeowners pay for home improvement projects. These financing programs also offer promotions such as same-as-cash, deferred payments, reduced interest, and low monthly payments that provide flexible options to help satisfy a customer’s financing needs. But who can be approved for these financing programs?

Many traditional lenders are simply “approve or deny only” meaning customers are simply approved or denied based on credit score. Most of these lenders typically also require homeowners to have prime credit. Second look financing takes a different approach and is a way to approve a wider variety of credit customers, including those that most “prime lenders” (like banks) would decline. Second look financing (also known as “discount financing”) is where a contractor shares a portion of the risk of financing credit-challenged customers through a discount fee. Risk discounts are costs to the dealer based on the customer's credit and application information; the weaker the credit, the higher the fee may be. For instance, if a $5,000 project is approved with a 5% discount fee, the customer receives the full $5,000 for the project while the contractor receives $4,750. It’s important to note that there isn’t a discount fee for all customers. This would only apply to those subprime customers that have some credit issues.

So why would a contractor accept a discounted approval?

  • Some profit is better than no profit.
  • Prevent customers from using a competitor who does take discounts.
  • Future sales & service from customers along with referrals.
  • Breaks from suppliers on pricing due to greater volume of sales

Second look financing provides flexible options for contractors and the comfort of knowing they can get a variety of their customers approved for financing. Having second look financing and flexible payment options available can help contractors close more sales. At Foundation Finance, our goal is to help you build your bottom line with a great second look program as well as competitively priced prime bids.

For more information, visit .