Let’s start with problems that exist in the HVAC financing space today. Many HVAC contractors have several financing and rent-to-own options that they offer to their residential customers. However, the challenge of multiple offerings is; how do you know where to start? If you are visiting a client in a nice section of town with a big house, do you start with your “super prime” offer? Or conversely, if you are in a lower income area with a simple house, do you start with “sub-prime offering? How do you know you are guessing correctly? Plus, consumers get turned off having to fill out multiple applications, each with different guidelines, invasive questions, and small text. And, they do not like hearing the word “NO”. Clearly, we need an easier and better way to assess customer buying power.
There are two ways lenders assess your credit. First is the traditional way, through a hard credit pull. This type of assessment goes right to the credit bureaus (Experian, Equifax, or Transunion) where they request a complete credit file to review your customer’s credit history. This hard credit pull will be listed on their file and can negatively impact their credit score. The second method, a soft credit pull is just an inquiry to their credit worthiness — and the good news is, it does not impact their credit score or show up on future reports.
So, as a HVAC contractor – which way should you go? The answer is easy – start with a soft credit pull to take the guesswork out of the sales process and improve the customer experience.
Here are the 5 ways soft pull will help your business:
#1 Stop the guessing
None of us can guess if someone’s credit score is excellent, average or challenged. Use a tool that takes the guess work out of the process.
#2 Improve the approval odds
With a soft credit pull we will preserve your customer’s credit score. Multiple hard credit pulls can negatively impact a customer’s credit score? That can force a customer to pay more just for trying to access credit!
#3 Affordability matters
Quickly understanding your customer’s buying power enhances the process. Stop offering a Ferrari when the customer can only afford a Chevy.
#4 Generate higher profits
With the knowledge of affordability, you can now propose the right product and accessories to provide greater efficiency and comfort to the homeowner. This increases your profitability and improves the customer’s overall satisfaction during a challenging time.
#5 Elevate your close rates
This process is simple and non-invasive for your techs and customers. It seamlessly fits into the sales process and provides a natural resolution, resulting in higher close rates. STOP saying “NO”!
EGIA and Microf have partnered to Create OPTIMUS, a First-of-its-Kind Financing/Leasing Solution for Residential HVAC Systems. The platform, called OPTIMUS, provides a simple, automated process for all applicants, regardless of their credit score or the financial solutions desired. OPTIMUS uses a “soft” credit pull from leading FICO® reporting agencies to quickly provide lenders and options based on the qualifications and needs of the consumer. This technology, coupled with world-class lender relationships through EGIA, delivers the best overall experience, most flexible offerings, and highest opportunity for an approval in the industry.
Click here to request a demonstration, and enroll with OPTIMUS. An EGIA representative will help you take advantage of the OPTIMUS platform with soft credit pull technology!
Article Provided by Microf. Every OPTIMUS Pathway comes standard with Microf Lease Purchase products. The most unique lease purchase option available with no FICO requirements; approves up to 75% of the applications declined by traditional financing providers. It is the perfect complement to any OPTIMUS Pathway.