Kitchen Financing for Contractors
Offer home improvement loans to customers with no hidden contractor fees or credit cards.
Offer home improvement loans to customers with no hidden contractor fees or credit cards.
No hidden contractor fees or credit cards
Instant approvals up to $100,000
Payment direct into your bank account via ACH
Close more bids and save you and your customers money
Kitchen renovations rival bathroom remodeling as the most popular American home improvement. Many things contribute to the success of your kitchen remodeling business – the skill and quality of your work, your knowledge of the latest kitchen trends – but having great financing is crucial to selling your services, too. Setting up contact with a home improvement financing company offers some big advantages compared to just leaving your clients on their own.
The number of people hankering for kitchen renovations is far bigger than the number who can afford one. Offering projects in the form of a low monthly payment via attractive APRs of 8.99% and loans that spread payments out over a period of up to 15 years gives you a huge advantage in winning new customers.
Kitchen remodeling is one of the pricier home improvements, with the average cost of overhauling this room ranging from $20,000 to well over $100,000. A modest upgrade involving refacing cabinets rather than tearing them out, painting the walls, replacing the sink and faucet with a new setup, and laying down new flooring and countertops averages about $21,000. Adding in partially customized cabinetry, an island, higher quality sink and appliances, and custom lighting can easily raise that cost to $62,000. Granite countertops, custom cabinets, designer fixtures and lighting, can push costs even higher. Due to the high expense, readily-available financing lets customers access the home they always dreamed of, instead of making compromises.
Even if a client only wants certain parts of their kitchen renovated, the cost is still high enough to easily justify financing. Refinishing cabinets, for example, can cost between $1,500 and $4,000, while refacing them makes that jump $4,000 to $10,000. Similarly, replacing appliances alone can cost anywhere from $3,000 for store-bought pieces to $12,000 and up if the client wants quality appliances built-in as a custom feature. Any job over $3,500 can be readily financed to easily seal the deal.
Supported by a convenient, cooperative, turnkey financing source, you and your clients can choose from a full range of options for kitchen countertops. Backed by a quality loan source, customers can focus on the pros and cons of various countertop materials without worrying as much about price. Bamboo is eco-friendly and gives a homey, warm appearance, but can be easily scratched or cut. Granite, the classic choice, is tough and attractive, though its edges can chip. Recycled glass looks very distinctive and withstands heat or scratches, but can stain or chip. Backed by financing, you and your clients are free to work out the best material for their needs and aesthetic sense.
Custom cabinets offer massive benefits in both convenience and unique appearance to homeowners, but are some of the most complex and expensive parts of a kitchen renovation, with costs varying depending on materials used. Custom design, millwork, fitting, and finishing are high- skill, time-consuming facets of a cabinetry upgrade. The preferred material – some type of high quality laminate or plywood – costs $500 to $1,200 per linear foot. Steel or steel-and-glass cabinets cost $1,000 to $1,600 per linear foot with the average American kitchen containing 25 linear feet of cabinets.
Good turnkey financing helps to cover the expense of custom cabinetry, even in larger than average kitchens.
Complete demolition can add anywhere from $350 to $1,500 to the price of a kitchen renovation, depending on your labor and disposal costs. The most difficult and costly removals are cabinets, flooring and appliances, assuming that large appliances such as refrigerators are involved.
Quality financing, with flexible amounts and good terms available, ensures that it isn’t necessary to skimp elsewhere due to the costs of demolition before the main project starts.
The price of new kitchen flooring is dependent on the various materials used in the process.
Waterproof materials are recommended for kitchen floors given their use for cooking. Older houses may require the removal of improperly waterproofed subflooring, too.
Linoleum and vinyl floors are among the least costly at $3 to $5 per square foot, while ceramic pushes the price up to $8 to $13 per square foot, slate $9 to $17, and marble or travertine $12 to $21. Sealed and waterproofed wood floors are at the high end, with bamboo the cheapest, laminate a mid-price choice, and hardwood equaling stone flooring in cost.
Any equipment, service, installation costs or other project related to home improvement qualifies for financing. The following is a partial list of what PowerPay finances: HVAC equipment & installation, attic insulation, stone veneer, windows, siding, roofing, kitchen remodels, bathroom remodels, cabinets, carpet, deck & patio, doors, fireplaces, garage doors, smart home equipment & installation, hardwood flooring, paint & wall coverings, hardscaping, landscaping, siding & exteriors, tile, stone & countertops, air conditioning & heating, gutters, spa & pool, home additions, deck building, tile installation, basement remodeling, custom cabinets, fence installation, lighting installation, garage building, cabinet installation, backsplash installation, electrical and plumbing and appliances.
50% of all home improvement investments over $5,000 are financed. Additionally, over 30% of all homeowners research financing options before making a home improvement purchase. Offering financing enables you to close more sales and earn more money on every job. By translating a large, expensive home improvement into a low monthly payment, you’re less likely to lose sales because of pricing, and you’re less likely to see customers haggling with you over costs. Quite simply, offering financing can help you to grow your business.
We were founded by a home improvement professional who knows firsthand the power of financing, as well as the damage fees can do to your bottom line and your customers’ pocketbooks. The average contractor pays 7.5% in fees on every financed home improvement project. That’s why we have no hidden contractors fees, credit cards or prepayment penalties. There are other important benefits for dealers:
Customers don’t pay you. PowerPay will direct deposit funds into your account via ACH within 48-hours after the install. You keep 100% of the funds, and your payment is guaranteed when you complete the project. It’s simple, fast and easy. No more collection calls and chasing clients for payments.
By using PowerPay, you are giving your customers options to pay for home improvements with financing. Your customer will apply online using our online application form and a decision is generated in seconds. Once approved, you can complete the transaction with your customer from our easy-to-use portal. Electronic documents will be sent via email and your customer can sign electronically – we are fully paperless. Your customer won’t get any bills for a month or so after installation. You will get paid by PowerPay in full after the installation is complete.
There are a number of ways to offer PowerPay to your customers:
First, your clients can apply at GetPowerPay.com
Second, we can supply you with a link or button for you to add on your website.
Third, customers can apply by contacting our call center and using your dealer/contractor ID.
Finally, your salespeople can provide a link to apply or use a tablet with our application form during in-person visits.
While other finance companies serve as “middlemen” and take fees from you for allowing you to offer financing to your customers, PowerPay does not act as a middleman or lead generator. That’s why we are able to not charge any fees. We have funding commitments for $15 billion. Every borrower is approved through our systems and all loans are processed through our system. That means that we control the rate and loan term, and service every loan.
With PowerPay, enrollment is through a simple form that takes 2 minutes. After that, our team will train and onboard you or your salespeople at no cost at a time that’s convenient for you. Our process is so simple that training takes less than 30 minutes. We can have you up and running and writing loans in one day.
There are several types of promotional loans. PowerPay offers two types. Same as Cash and 12 months and 24 months no payment promotions. First, PowerPay promotional loans are not credit cards. They are unsecured personal installment loans. The main difference between a credit card loan and PowerPay promotion is the interest rate once the promotion is over. In most credit card “teaser” promotions that rate, once the promotion ends, will be in excess of 29%. Our loans, once the promotion ends will be approximately 8.99% for 15 years with no prepayment penalties so customers can pay off whenever they like. We don’t like the credit card promotions because the fees are excessive and we’ve seen too many people get hit with accelerated payments and massive fees. It’s just unfair and most contractors don’t seem to care what the customer pays after they’ve completed their job.
With uncertainty in the economy and financial markets we believe that if a customer wants to use the promotion and then pay it over time, it should be at a fair and reasonable rate. Most contractors and dealers offer “teaser” promotions as a marketing tool but at the end of the day, only consumers will above-average credit qualify. PowerPay offers promotions for customers at many credit levels.
Our same as cash promotions essentially allow the customer to make a purchase and pay off the loan in equal monthly installments similar to how you purchase an iPhone. These programs are offered with the lowest fees in the industry. Ask your sales rep for more information.