All Banks are Reducing the LTV (loan to value) on Home Equity Line of Credit from 80% to 65%.
Will this effect your business?
A lot of your customers have value in their homes and would like to do a renovation. The living space may be showing its age and need an update or they may need to sell and to get top dollar will need to do a renovation.
Some of your customers may be able to go to the bank and get a line of credit. However the banks are making it more difficult to qualify and this once sure source of funds may not be available.
Credit cards may be a possibility. Your retail competitors and the big box stores offer in store credit cards. This credit is not a solution as the charged interest rates are between 20% - 30%.
As long as the customer has equity in their house, we are expert at finding financing for renovation projects. Our sources at the large institutions may offer Lines of Credit at the best rates where the client's bank turned them down. For clients with slightly bruised credit we have sources at slightly higher rates for Lines of Credit and unlimited sources of private financing.
You are an expert at what you do. You know how to get the best prices, bring the job in on budget and increase the value of the house. Do you have customers still resisting going ahead with the project.
The reason could be the client does not have a source of funding.
Isn't the best best place to find this objection after you have presented the quote. Present the quote and ask how they will be paying or offer the option for financing.
We can act as an extension of your company to generate the optimal financing solution.
Knowing you are in charge of the renovation our lenders will be comfortable extending the funds. We also know the value of the house will have increased and at the end of the project your client will qualify for traditional financing.