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...