Seems like that kind of person wouldn’t qualify for financing anyway then? Isn’t it safe to assume a homeowner with less than $1,000 in savings would also have a very difficult time paying back a $5,000 (or more) loan?
Well if they wouldn't qualify for financing, then the contractor is informed the customer is unlikely to pay for work, so they know not to work for them. Similarly, if they are approved, the contractor knows they will get paid, as the money is held by Kanda upon the customer agreeing to the loan. It becomes a win-win situation for the contractor. Finally, they are completely de-risked - if there is a non-payment, it'll be the bank who has to follow up on the non-payment and recoup any costs. All this does is empower tradespeople to ensure they're paid fairly for their work
Yeah that makes sense. Do you know how contractors in the US offer financing now? When I had my furnace and AC unit replaced I was offered financing options. I didn’t dig too deep as I didn’t need it, but it seems like there are options for certain sized projects. How are you more friendly to the contractor in situations where they already provided financing?
We've seen it here in the UK as well, with the larger firms being able to offer finance, either by lending their own money or agreeing with a bank and having spent the time and money to ensure they're fully compliant. This compliance includes how they can advertise, how they can talk to customers about finance, how they can handle their invoices and payment plans, etc. For the UK, they need to stay compliant with the FCA. With Kanda, we ourselves are the ones offering the finance. All of our systems, advertising (including the bespoke social media advertising we give to our contractors) and such are compliant, so the tradesperson knows they can use us and not need to worry. We're putting finance in the hands of the every day contractor, something previously only available to the larger firms who have outlaid costs