10: Grow Your Revenue By Selling Financing for Every Job with Chris Scoville

Small Town Roofer

From securing loans for projects to managing cash flow effectively, navigating the financial landscape can be overwhelming for many home improvement businesses. However, with the right tools and support, these challenges can be overcome. That's where improvifi comes in as they provide tailored solutions designed specifically for contractors and home improvement businesses, offering a seamless way to access financing and manage financial operations.

I'm excited to share this episode with you as I am joined by Chris Scoville, founder of improvifi, who revolutionized the industry by offering innovative approaches that set his team apart from standard financing companies. Tune in as we delve into how improvifi is making a difference in the home improvement space and what it means for homeowners and contractors alike.

Lending options for contractors with multiple lenders and a multi-lending platform.

Chris founded improvifi to address a significant gap in the market – contractors often struggle to offer, sell, or understand financing options due to the overwhelming variety of lenders and misleading information. This platform connects contractors with suitable lenders and provides a comprehensive program to help them implement and market financing solutions.

His extensive background in both construction and finance fuels his commitment to making improvifi a success, even as he navigates the financial challenges of launching a new venture. Currently, improvifi partners with four lending institutions, with three more joining in May so make sure to expect various innovative programs. This system ensures contractors can find the best financing options for their clients, enhancing their business capabilities.

Credit scoring and lending options for various categories of customers.

There are different credit categories and the challenges contractors face with financing options. Chris shares that super prime borrowers have FICO scores of 800-850 and are ideal for lenders. Prime borrowers range from 750-799, near prime from 700-750, subprime under 700, and super subprime from 550-640. Contractors usually don't know their customer's credit scores, making it crucial to use lenders offering soft credit pulls, which don't impact credit scores.

Many finance companies only lend to specific categories, primarily favoring super prime borrowers, often leading to higher dealer fees for counter offers in other categories. Improvifi's solution involves using a soft credit pull through their mobile app, allowing contractors to find suitable financing options quickly and without impact on the customer's credit. This approach helps avoid the limitations and issues seen with traditional lenders, ensuring contractors can offer financing to a broader range of customers.

Risk-based pricing in the lending industry and financing options for home improvement businesses.

In risk-based pricing within the lending industry, contractors must navigate set pricing and dealer fees to maintain profitability. When a contractor approaches Chris’s team, they analyze their business and margins, suggesting they adjust their prices to account for dealer fees. This ensures that their profit margins remain intact despite financing costs.

Chris emphasizes that contractors should present a consistent price for both cash and credit transactions, avoiding explicit line items for dealer fees in contracts. They can, however, offer cash discounts if desired. Surprisingly, many contractors already absorb credit card swipe fees without considering them akin to dealer fees, essentially giving away part of their profits.

Contractors should increase their prices to cover these fees, as failing to do so results in lost revenue. Chris mentions a friend who does millions of dollars in credit card transactions but doesn't account for the fees, losing substantial amounts of money. He also suggests raising prices a bit to cover these costs and even recommends doing less business to achieve a better work-life balance.

Entrepreneurship, risk-taking, and finding the perfect client.

Entrepreneurship often involves significant risk-taking, and Chris's journey is a testament to this. Leaving behind stock options, bonuses, and a prestigious role, Chris took the risk and resigned from his previous job to focus on his software venture connecting contractors with finance companies. He leveraged his expertise to create improvifi – a platform that successfully enrolled hundreds of contractors in a span of 90 days.

He emphasizes that many contractors struggle with implementing and marketing financing solutions. And so, his goal is to help companies, especially those earning between $1 million and $3 million annually, to scale up to $5 million by adding effective financing strategies. Despite the challenges, he remains confident in his abilities and the potential impact of improvifi on the contracting industry.

Chris believes that finding the perfect client – contractors eager to grow but lacking the necessary financial tools – will not only drive improvifi's success but also transform the businesses of those he serves. His focus on scaling and profitability highlights the importance of strategic financial planning in achieving sustainable business growth.

Financing options for home repairs with a focus on credit cards and loans.

Implementing financing options, including credit card payments, significantly boost job closures. Even with a 3% fee, customers appreciated the benefits of credit card points and tax write-offs. According to Chris, many clients in Southeast Ohio, where the average household income is around $50,000, cannot afford large expenses like roofing repairs upfront, as most people don't have even $5,000 saved for emergencies.

To address this, financing solutions offer critical support. For example, a $15,000 roof replacement can be financed over 10 to 15 years with no early payoff penalty. This flexibility allows clients to make manageable monthly payments and use tax refunds or bonuses to pay off the loan faster. The loans are unsecured, meaning they aren't tied to the property, making it easier to sell the home without complications. This financing strategy is essential for providing affordable options to customers living paycheck to paycheck while ensuring they get necessary home repairs.

Entrepreneurship, stress, and balancing control in business partnerships.

Chris faced rapid growth in his venture, leading his wife to join him as COO at Improvifi. Together, they manage the business from home, balancing work and personal life. Chris shares the reality behind his energetic social media presence, acknowledging the support and encouragement his wife provides during challenging times. The couple's collaboration has been a blessing allowing them to handle the business's demands more effectively. Despite the challenges, Chris remains committed to his mission, continually motivated by his wife's partnership and their shared vision for improvifi's success.

The pressures of entrepreneurship weigh heavily on him, particularly the responsibility of ensuring his team's and clients' well-being. Despite careful cash management and optimism about overcoming struggles, he emphasizes the importance of managing partnerships with lenders.

A key lesson for contractors in the $1-3 million revenue range is the importance of learning to say no and focusing on core services. As such, Chris focuses on aligning contractors with the right partners and providing valuable support while striving to manage expectations realistically. He shares his own experience, noting that his business flourished once he began declining work that didn't align with his capabilities. This approach freed up resources to better serve ideal customers.

Providing financial services for roofing businesses.

Improvifi offers a comprehensive consulting and training service for contractors, helping them connect with appropriate lenders and implementing financing strategies. For a fee, Chris provides ongoing support and training, ensuring contractors can effectively sell financing options and grow their businesses. Members gain access to a range of lending solutions, including unsecured and secured lending, direct-to-consumer loans, commercial loans, and various lines of credit such as SBA loans and equipment loans.

Additionally, improvifi provides marketing audits to optimize contractors' business operations, ensuring their online presence and finance pages are effective. Chris emphasizes his role as a reliable point of contact for contractors, ready to assist with any financing needs. His commitment extends beyond merely connecting contractors with lenders; he offers comprehensive support, including handling complex deals like landlocked investment deals and commercial loans. Chris's goal is to build a successful team and make a significant impact in the contracting industry.

Transform your home improvement business and maximize its potential with improvifi: https://improvifi.com/

Connect with Chris on Facebook: https://www.facebook.com/TheScoShow