Consumer Financing for Moving Services
Consumer financing is a powerful option for both customers and moving companies. By offering financing, you can attract more customers, increase job sizes, and stay competitive. That’s why SmartMoving has partnered with Remedy Payments to deliver a straightforward consumer financing solution. Remedy provides hands-on support and training to make integration seamless.
Why Offer Consumer Financing as a Moving Company?
Offering consumer financing is a proven strategy that can significantly boost your business by making your services more accessible to a wider range of customers. It enables customers to split their moving costs into manageable monthly payments, helping you win more jobs, increase your average transaction size, and offer a unique competitive advantage.
Key Business Benefits:
Win More Jobs: Offering financing can help you win jobs that might otherwise go to a competitor. In the service-based industry, 87% of businesses won a job because they offered financing.
Secure Larger Jobs: Financing allows you to offer flexible payment plans on larger jobs. Many customers are more likely to hire you for bigger moves if they can spread payments over time, increasing your total revenue.
Increase in Sales: Wells Fargo Research reported that companies that offer financing see a see an increase in sales by an average of 12-18%. Financing helps bring more customers into the market by making services affordable through manageable payments.
Increase Average Transaction Size: Customers who choose financing are more likely to add additional services, such as packing or storage, because they can spread the costs into manageable monthly payments, rather than dealing with large upfront expenses typically involved in purchasing a home.
This means that not only can you win more jobs, but you can also increase your revenue per job by offering financing.
Why Financing Is a Smart Choice for Customers
Financing helps customers manage large upfront moving costs, making your services more appealing.
Customer Benefits:
Affordable Monthly Payments: Instead of paying for a $2,000 move upfront, give your customers the ability to spread the cost over several months. This makes the moving process much more affordable. Financing approvals are based on credit worthiness.
Flexible Payment Plans: Terms range from 3 to 60 months, depending on the loan amount.
Flexible Credit Options: Remedy’s lending partners will work with consumers with FICO scores as low as 540.
No Cost Financing: Remedy offers no-cost financing to the consumer with rates as low as 0%.
Direct Payment to Mover: Funds are deposited directly to the mover and the consumer won’t be able to take the financing and use it with a different moving company.
No Compounding Interest or Extra Fees: Customers pay only the agreed amount, with no additional fees or penalties beyond possible credit score impact.
Remedy’s Role: Hands-On Support and Training
Remedy handles the entire process, even assisting you through the process of using their pay-over-time platform partner Wisetack, ensuring a smooth experience for movers. From onboarding to daily support, Remedy is there to help.
Training & Onboarding: Remedy provides personalized training on integrating financing into your business.
Support After Pre-Qualification: Remedy assists with the creation of a Wisetack account, closing out loans in the Wisetack portal once a job is complete, etc.
Ongoing Assistance: Remedy is available to address any questions or concerns.
Getting Started: Simple Steps for Movers
Getting set up for consumer financing is easy. SmartMoving and Remedy take care of most of the work, so you can focus on your business. If you’re interested in offering financing, here’s what the process looks like:
Reach Out to Remedy: Call Remedy at (714) 461-2200 or use this direct link https://remedypayments.com/smartmovingconsumerfinancing to request a meeting with Remedy Payments to get started.
Receive Your URL: After your account is approved, you will be provided with a unique URL that allows customers to apply for financing. This URL will be embedded into your customer portal so that customers can pre-qualify for financing prior to the move.
Training & Support: Remedy will walk you through the entire process, from pre-qualification to closing out loans.
What It Costs: Understanding Fees and Rates
The fees associated with consumer financing are simple as merchants only pay one fee when clients pay via financing.
Cost to Movers (Not Passed to the Customer):
Pre-Qualifications: Providing your customers with the ability to pre-qualify for financing is free to you.
Financed Amounts: Only pay 3.9% of the funded loan amount.
Financing doesn’t carry extra surcharges. While there is a cost to the mover for processing the loan, this is factored into their business operations and not added onto the customer’s bill.
Transparent Financing for Customers
The financing product is transparent, without hidden fees or penalties beyond potential credit report impact for missed payments.
No Hidden Fees: There are no surprise charges or punitive interest hikes beyond a potential ding on the customer’s credit report for missed payments. The lender may report the missed payment to credit bureaus, and unpaid debts could eventually be sent to collections, but there are no punitive interest hikes like those found in other financing products.
Flexible Payment Options: Customers can finance amounts between $500 to $25,000, with terms ranging from 3 to 60 months, depending on the loan amount. Larger loans, over $8,000, can extend up to 60 months.
Reasonable Interest Rates: While interest rates can range from 0% to 35.9%, the average across service industries is 14% for a 36-month loan, making this a fair and manageable option for most customers.
Tips, Costs, and Closing Out the Job
When customers use consumer financing, it covers the entire bill, including additional services, materials, and even tips. The loan amount includes everything from boxes and service fees to tips for your movers.
What Movers Need to Know:
All-Inclusive Financing: The financing amount covers the full cost of the job, including tips. For example, if the total cost of the job is $2,500, this can include a tip amount, and the full amount will be financed.
Closing Out the Loan: Near the end of the job, you will need to log into the Wisetack portal to adjust the final loan amount (if needed) and send the customer a confirmation link. The customer will then confirm the job is completed, and the funds will be released within 1-2 business days.
Conclusion
Consumer financing is a powerful tool that can help moving companies win more jobs, increase revenue, and provide a competitive edge. With Remedy leading the way through hands-on training and ongoing support, you’ll be well-prepared to offer financing to your customers and reap the benefits.
From the moment a customer applies for financing to the final payment, Remedy will be with you every step of the way. If you’re ready to expand your business with consumer financing, reach out to your SmartMoving Customer Success representative, and SmartMoving and Remedy will take care of the rest!