Too Many Contractors Still Don't Offer Financing
OPTIMUS Financing partnered with HARDI to conduct a contractor survey on financing and related topics. One of the survey's most interesting findings is that 38% of contractors polled still don't offer financing.
On episode 25 of Matt Chatts, Matthew Bratsis made a bold prediction by saying that any contracting business that doesn't offer financing in 2024 will go under by the end of the year.
Scott Carreiro of Daikin Comfort Technologies, North America chimed in by adding that there was a significant downturn in the industry in the first six months of 2023. "What we're seeing overall is some erosion in retail and residential channels and an erosion in consumer confidence. We're seeing close rates drop, and for folks who don't have the right finance partner, they're having a hard time getting deals financed. It's been kind of a perfect storm."
OPTIMUS Financing's National Sales Director Eric Gude also weighed in on the conversation, saying "I see it all the time at shows or events, the number of people we talk to that aren't offering financing is astounding."
Jeremy Chandler, the National Senior Manager of Strategic Partnerships also added that just in his personal experience, when meeting with contractors, about three out of 10 of them don't offer financing. "About three of those are calling to enroll in financing because they have a deal pending today that they need financing to close," said Chandler.
"Nobody thinks about their roof leaking until it rains," added Gude. "But then when it's sunny for a month you don't even think about it. Same thing with financing, you gotta have it done beforehand."
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