‘Our Customers Don’t Ask for Financing’ – Why Demand in the Home Renovation Sector Is Higher Than You Think

In the home renovation industry, companies often say: “Our customers don’t ask us about financing.” At first glance, this may seem true, but the reality is different: financing plays a crucial role in enabling homeowners to take on major projects, such as energy-efficient upgrades to their homes. Let’s take a look at why financing is so important – and how it can transform your business.

The Power of Financing: Key Statistics

To understand the impact of offering financing, consider the following numbers:

• Sellers who offer financing to every customer see 20–30% higher close rates compared to those who don’t.
• Customers who finance their projects spend 18–24% more than those who pay out of pocket.
• Around 65% of all home renovation projects over €5,000 are financed annually.
  

These statistics show a clear trend: financing not only helps customers complete renovations, but it also increases revenue and average project value for businesses.

A Story: How Financing Can Revolutionize Sales

Imagine you’re a salesperson for heat pumps – a product that costs between €15,000 and €25,000, depending on the model. For many homeowners, this price can be intimidating, even if they’re ready to switch to a more sustainable heating system.

Now present the same product with a different approach:

“Instead of paying €20,000 upfront, you can have this heat pump installed for just €150 per month – less than your current gas bill. Plus, you’ll save energy costs over time and reduce your carbon footprint.”

Suddenly, the conversation changes. The homeowner no longer sees the heat pump as an unaffordable investment, but as an affordable monthly payment that may even be cheaper than what they currently pay. Financing transforms a difficult sale into an easy decision.

This approach not only simplifies the sales process significantly, it also builds trust with customers – because you’re demonstrating that you understand their financial situation and are offering a practical solution.

Why Customers Don’t Ask for Financing

Lack of awareness

Many homeowners don’t realize that financing options for renovation projects even exist. Without this information, they assume they must pay everything upfront or dip into their savings.

Fear of complexity

Customers often think that financing is complicated or time-consuming and avoid asking about it.

Cultural stigma around debt

In some European countries, there’s still a stigma around taking on debt for “non-essential” expenses like home improvements. This can lead customers to avoid the topic or to abandon the project entirely - even if it would considerably increase the value of their property.

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The Reality: Financing Is Essential for Home Renovation

Renovation projects often involve substantial costs – whether it’s for a kitchen remodel, energy-efficient windows, or sustainable systems like heat pumps and solar panels. These expenses can quickly reach tens of thousands of euros, making financing essential for many households.

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Why Offering Financing Is So Important

High costs are a barrier

Projects in the €20,000–€70,000 range are often beyond the immediate budget of many homeowners. Without financing options, customers frequently postpone or cancel their plans.

Energy efficiency incentives require upfront funding

European governments increasingly support energy-efficient upgrades (e.g. through KfW programs in Germany or the Superbonus in Italy). However, these typically require homeowners to pay in advance before receiving reimbursement – here, financing provides a critical bridge.

Evolving customer expectations

Today’s consumers expect flexibility when it comes to paying for products and services – especially for high-value projects like home renovations. Offering financing meets these expectations and positions your business as modern and customer-focused.

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How to Introduce Financing Options

A. Partner with a trusted provider

Work with providers that specialize in POS (point-of-sale) financing for the home renovation sector. These partners handle credit checks and collections, so you can focus on your services.

At Nemi, for example, we help you easily offer this type of financing to your customers. Contact us for an introductory conversation – we’ll also help you find out how to increase your revenue or better package your offers.

B. Actively promote financing

Don’t wait for customers to ask about financing – bring it up proactively during consultations or include it directly in your proposals. Show how affordable monthly payments can make even large renovations achievable.

At Nemi, we’ve developed a tool that allows you to easily present quotes to your customers, including suitable financing options.

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Conclusion: The Hidden Demand for Financing

Even if your customers aren’t explicitly asking for financing – the demand is there! It’s often hidden behind a lack of awareness or hesitation. By proactively offering flexible payment options, you can meet that demand and position your business as a leader in the competitive home renovation market.

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