Home Improvement

Controlling Cash Flow in Uncertain Times

By November 18, 2020 No Comments

COVID-19’s impacts on the economy and accompanying uncertainty have elevated the importance of cash flow management for everyone. While homeowners are finding that they need renovations as they spend more time at home, many are also more cautious than ever about spending cash. This may even be true for urgently-needed, essential home improvements like roofing replacements and HVAC repairs.

Despite the opportunity presented by this potentially strong demand for home improvements, many contractors are feeling this concern, too. Beyond the uncertainty over the current economic downturn and the timing of a recovery affecting their customers, social distancing guidelines have added challenges to normal in-person selling processes. Thus, maintaining tight control over your business’s cash flow has also taken on an elevated importance.

Mosaic has built its own business by being responsive to the needs of our solar and home improvement contractor partners, and we’ve heard these concerns loud and clear. That’s why we’re so pleased to be introducing new financing options and features to help address these concerns for both you and your customers.

Financing Options for Evolving Customer Needs

Mosaic knows a thing or two about the difference financing can make when it comes to closing deals on major investments in a home. Since our early days as a pioneer in home solar lending, Mosaic’s easy-to-use software platform has enabled over $3 billion in cumulative solar and home improvement loans to be financed since 2014*. Along the way, we’ve partnered with hundreds of contractors, ranging from the biggest names in the industry to independent, family-run businesses, to help them grow.

Traditionally, Mosaic has focused on offering long-term financing options through its platform, including loans with terms of 5, 7, 10, or 12 years. Being able to change the sales conversation from a five-figure investment to a low monthly payment has helped Mosaic’s solar and home improvement partners close over 100,000 deals over the past six years. Partners have full control over which financing options to offer, with a range of fees and APRs available (including special promo rates – click here to learn more about becoming a Mosaic partner and qualifying for these special rates)

Mosaic has also introduced a home improvement financing option that may have particular appeal right now: no payment, deferred interest loans, which give customers a promotional period of 6, 12, or 18 months to pay back loans of up to $55,000 with zero interest if the loan is paid in full during the promotional period. This is a perfect option for homeowners that may have paid cash under normal circumstances but are worried about the economy and want to save their cash in the short term.

That means you can now meet evolving customer preferences with a wider range of financing options than ever, increasing your chance of closing the deal. And, with many customers preferring to shelter in place and avoid in-person meetings, Mosaic also gives you the ability to offer a contact-free, remote financing experience covering everything from credit application to loan signing. (Click here to learn more about how Mosaic’s contact-free selling works)

It’s Easier Than Ever to Control Your Own Cash Flow

Mosaic has also introduced three changes to contractor payment processes to give our partners more options for controlling their own cash flow during this uncertain time:

1. Emergency Funding: Essential jobs like roof replacements or HVAC repairs are more urgent than ever with customers staying at home. Now, Mosaic will initiate disbursements immediately for projects completed within the first 3 days, provided customers acknowledge the emergency nature of the project and provide a hand-written, signed waiver of their right to cancel the project and the financing.

2. Staged Funding: Now, you can break projects into stages and customize your funding schedule. For example, for a backyard landscaping project with multiple components, you can get paid after finishing the outdoor kitchen, again after the installation of the fire pit, and a final payment when the pool is complete. You can also choose to get paid a portion of your costs up front and a portion at completion; for example, for an installation of new windows, you can get paid 40% up front and 60% upon the completion of the project. 

3. Flexible Confirmations: Project stages can now be confirmed and payments initiated with a borrower-signed completion certificate or a text message from the homeowner. Because it avoids the need for in-person paperwork, this flexibility is another way that Mosaic helps you offer a remote, contact-free financing experience.

These options can all help you get paid sooner, as well as helping you to be more responsive to customer needs for faster home improvement project timelines and a contact-free, paperwork-free experience.

A Partner for Unprecedented Times – And Beyond

Mosaic’s platform for financing home improvement projects offers win-wins for contractors and homeowners alike – regardless of today’s unprecedented challenges. Customers get access to easy-to-understand financing options with competitive rates and fast approval decisions to help them pay for the home improvements they need. And contractors get to “yes” more easily with customers who would be a firm “no” for a cash up-front deal.

Mosaic’s Portal 2X, accessible on any mobile or desktop device, is also a major value-add for both contractors and customers. Instant pre-approval decisions with soft credit checks allow you to insert financing into the conversation sooner, allowing your prospective customer to stop wondering “how am I going to pay for this?” and instead consider “what home improvements do I want now that I know how much financing I can access?” It’s a powerful shift that can help you close bigger deals with more satisfied customers – and the secure, fully online process can be completed remotely. (Click here to learn more about how pre-approvals can transform your sales process.)

Finally, Mosaic partners can be confident that our financial backing remains strong – in fact, our warehouse lending facility was just increased by $50 million by one of the largest investment banks in the world. That means you can partner with Mosaic knowing that you’ll be able to continue offering financing options to your customers despite COVID-19’s uncertainty.

As we all navigate these turbulent times together, Mosaic is committed to continuing to listen to our partners and improving our products to adapt to their needs – whatever the future holds.

Click here to learn more about becoming a Mosaic partner today!

*Home Improvement Loans through the Mosaic Platform are made by WebBank, Member FDIC.