April 12, 2023
How Soft Pull Credit Technology Can Boost Approval Rates and Increase Sales in the Post-SEER Era
Hello. My name is David Delgado, and I am the Director of Business Development at EGIA, a non-profit organization serving the HVAC industry. We work with manufacturers, distributors, and HVAC contractors across the country, and we have been receiving concerning feedback lately.
In a post-SEER era, approval rates for financing in the HVAC industry are decreasing. This is concerning for both homeowners and contractors alike. With the current state of the economy, homeowners are looking to save money wherever they can. However, when they need to replace their home comfort systems, they often don’t have the funds available. This is where financing comes in.
Unfortunately, many homeowners are being declined for financing, and this is leading to a decrease in approval rates. For low to middle-income earners, the average credit score is around 600, which is considered fair. This means that many homeowners are at risk of being declined for financing, leaving them with limited options.
The problem with being declined for financing goes beyond just the immediate disappointment of not being able to get a new HVAC system. When a homeowner is declined for financing, they are left feeling embarrassed and frustrated. They don’t want to risk another hard hit on their credit, and they may not want to go through the lengthy process of applying for financing again.
This can lead to a decrease in the likelihood of doing a deal with the contractor. The contractor may not want to go through another lengthy approval process, and the homeowner may be hesitant to continue with the process. This can lead to lost sales for contractors, which is never a good thing.
But, there is a solution to this problem. Soft pull credit technology is the answer to increasing approval rates for financing. With this technology, contractors can quickly and easily determine what financing options are available to homeowners. This provides homeowners with a better experience and increases the likelihood of closing the sale for contractors.
At EGIA, we have a solution for contractors that need to improve their financing options. Our program, OPTIMUS, is designed to help contractors increase their approval rates for financing. With OPTIMUS, contractors can offer financing options to homeowners quickly and easily, without the hassle of lengthy approval processes.
In conclusion, the decrease in approval rates for financing in the HVAC industry is a concerning trend. However, with soft pull credit technology, contractors can quickly and easily determine what financing options are available to homeowners. This provides homeowners with a better experience and increases the likelihood of closing the sale for contractors. If you’re a contractor looking to improve your financing options, contact EGIA today to learn more about our OPTIMUS program.
To connect with me please reach out. I’d love to connect or hear feedback:
To schedule a call: www.egia.org/david
Reprinted with permission from David and EGIA.