Contract The View Talk from CertassENSURING FINANCE ADDS UP EASILYJon Vanstone, Chair of Certass, discusses the key issues for installers around offeringfinance, and explains the steps Certass has taken to ensure its membership has easy accessto the right finance options.Having a finance option to offer tohomeowners looking for new windowsand doors can be an integral sales benefitfor local installers, often enabling them tocompete with larger national companies. This iswhy Certass is ensuring that there is an easilyaccessible solution for installers in our industry.There is a buoyant market out there for homeimprovements at present. With so many of ushaving been stuck at home for months, you startto notice what work needs doing around the house.Some have found themselves working from homefor the first time, and for many it could becomepermanent. This is driving the increased interest inconservatories, extensions and garden buildings tocreate that all-important home office space.“Installers want thechoice of putting afinance option ontoan invoice, withouthaving a mountain ofpaperwork to fill in orlong wait”This offers considerable opportunities for installers,but prioritising the cost of a new conservatory or afull house of windows and doors can be difficult,and no matter how many holidays have beenmissed in 2020, homeowners won’t always havethe cash to stump up front for a job. Add in newtrends such as higher value and ‘lifestyle’ productssuch as wide-span doors, and that cash numbersteadily increases.Larger order values can be profitable for SMEs, butincreased order values often come with a greaterdemand from homeowners for flexible paymentoptions. As we have come to understand, being ableto offer finance to your customers canprove difficult to achieve currentlyin our sector with some very highsign-up rates in excess of £500.Red tape and extra admin areoften the barriers, and for somefinance products, companies haveto be authorised by the FCA as a creditbroker – a process that can easily take up tofour months.We know from talking with our membershipthat there is an appetite for easy financeoptions. Installers want the choice of putting afinance option onto an invoice, without having amountain of paperwork to fill in, or a long wait forauthorisation.Get in the know on financeThe scope of home improvement financeis generally between £500 and £50,000. Itcovers supply only and supply plus installationtransactions. A loan obtained through a homeimprovement retailer is known as Point of Sale(POS) finance or Retail Finance. Customers neveractually receive the money from these loans. Theyare paid directly to the retailer within a few days ofsatisfactory delivery or installation of the job.To offer this finance, SMEs with a revenue of lessthan £3 million will need to go through a broker.If installers want to offer 0% finance, repaid in 12instalments or fewer, the company does not need tobe authorised by the FCA.If installers want to deliver finance differently, theeasiest way to do it is to become an ‘introducer’ ofthe broker. This means that you don’t actively sellor provide the finance to the customer, and don’tneed to be authorised by the FCA. Simply use thebroker’s IT system where they will advertise andpresent finance options to consumers.Contact Certass:01292 502 398www.certass.co.uk@CertassLtdThis method helps installers tooffer finance without the adminand hassle of becoming anauthorised credit broker.If you’re considering ‘introducer’options, always ask for a demo ofthe broker’s IT system and customerjourney before signing up and be aware of anylarge upfront or monthly management fees.“An ability to ensureaffordability forconsumers withoutconsiderable cost andred tape for an installerwill ensure continuedrevenues”This is why Certass is partnering with the leadinghome improvement finance providers andauthorised credit brokers to help our membershipget easy and fast access to finance for theircustomers. It follows our philosophy of helping theinstaller and not gaining from them commercially.The finance industry is starting to offer somevery attractive solutions to our industry and whencombined with the need to renovate homes due tochange in lifestyle requirements, an ability to ensureaffordability for consumers without considerablecost and red tape for an installer will ensurecontinued revenues throughout the year.16 T I SEPT/OCT 2020 PRACTICAL CONTENT FOR THE GLAZING INSTALLER & HOME IMPROVEMENT SPECIALIST
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