Contractor-offered same-as-cash loans — A key to success
At Regions Home Improvement Financing, we offer a variety of loans designed specifically for home renovation projects. That means no matter the size, scale, or scope of the project, there’s likely a loan to fit both the needs of your business and the individual financial situation of your customers. One of our most popular options is the same-as-cash loan.
What are same-as-cash loans?
A true same-as-cash loan is a short-term lending solution that requires no interest or monthly payments if it’s paid off during the same-as-cash period. This means the customer pays the same amount on the loan they would have paid up front with cash. The only difference? They have the advantage of keeping their cash on hand longer.
If the loan is not repaid during the same as cash period, any accrued interest will be added to the outstanding balance and placed in a fixed rate installment loan.
Why a same-as-cash loan?
Customers enjoy the flexibility that this type of loan provides. It’s an ideal option for customers who prefer not to use their own money today. It’s also a great option for customers who have a source of cash coming in such as a bonus at work, an investment, or a tax refund, but want to get their project done now.
What projects are best for a same-as-cash loan?
Same-as-cash is one of our most popular loans and works for a variety of projects. In fact, we recommend offering all your customers a choice between a same-as-cash loan and a low monthly payment option. This will help you take advantage of the full benefits that offering payment options has to offer.
Why offer same-as-cash loans?
Customers pay for home improvement in many ways. Even if it appears they’re paying in cash, that money could be coming from other sources. This includes cashing out a CD, liquidating stocks, drawing on a home equity line of credit, or by dipping into other assets that may have steep penalties, tax implications, or other costs.
The bottom line is, the Home Improvement Research Institute reported in their October 2023 TFG Monthly Report that over 55% of home improvement projects are financed in some way. So, by offering payment options to your customers, you establish yourself as their problem solver — increasing the likelihood that they’ll hire you for their project.
With flexible financing, you give your customers greater spending power to get the project they want when they want it! This can help you close more jobs and increase your average project size.
The next steps
If you want to start offering your customers a choice of appealing payment options, including a Same-As-Cash loan, simply fill out this form to learn more about our contractor financing programs and the many resources we offer.
