Has anyone lost a job over financing?
How many installation company contractors know about HEA (home equity agreements) that clients can receive funding without credit issues and without a monthly payment.
Forum Discussion
I lose jobs over financing, and it's frustrating as hell. Most of the time, it's because standard lenders turn customers down right on the spot over credit scores or debt ratios, and the job just dies right there. I'm not trying to carry customer debt on my own books with in-house payment plans either, because that's a fast way to get burned and ruin cash flow.
That's why I look into options like Home Equity Agreements. Hardly any contractors in our industry even know what an HEA is or how it works. Standard point-of-sale financing is built for quick approvals, while an HEA acts more like a real estate transaction that takes weeks to pull off title checks and appraisals. Most guys don't want to deal with explaining equity shares or waiting around when the money goes to the homeowner first instead of directly to the shop.
But for bigger non-emergency projects, it actually makes sense. If a homeowner is sitting on plenty of equity, has beat-up credit, and can't handle another monthly payment added to their budget, an HEA gets the job funded when traditional lenders say no.
I could see HEAs being useful for larger non-emergency projects, especially when the homeowner has equity but traditional financing is the roadblock. I’d want to understand the fees, appraisal process, how long funding usually takes, and whether a lien is placed on the home before presenting it as an option.
