Contractors rely on financing to close more jobs and increase ticket sizes, but limited financing options often lead to low approval rates. With first-look financing, some customers can be declined for offers that require high credit scores. This results in lost jobs and customers, as declined applications create a poor financing experience that can lead to permanent customer loss. Second-look financing allows you to increase your customer’s chances of getting approved for a loan.
Have you looked at your average financing approval rate recently? (Hint: if you’re an existing ServiceTitan Integrated Financing customer, you can find it in the Financing Dashboard). How are you handling loans that don’t get approved? By integrating both first-look and second-look providers, businesses can maximize their financing approvals, leading to more jobs closed and increased ticket sizes.
Shifting economic conditions like rising inflation have led to increased costs of goods and services, so customers need to decide how they’ll pay for both small- and large-ticket purchases. At the same time, consumer approval rates for financing and confidence in getting approved have decreased in 2024. Consumers are also slightly less likely in 2024 to apply for credit, despite needing it, because they expected their applications to be rejected. It’s become more important than ever to provide a broader spectrum of financing options to customers and give them the confidence that they’ll be more likely to be approved. Better financing options also help increase ticket sizes at a time when customers are scaling back on spending.
What is second-look financing?
Did you know that 50% of first look declines result in a lost job?* When a customer applies for financing, their application is first reviewed by a first-look lender, typically one that offers competitive rates for customers with strong credit. If approved, they receive an offer with the best available terms. Second-look financing gives customers who may not qualify for traditional financing a second chance by reviewing more data on the applicant beyond traditional credit data. This expands financing options for customers of varying credit profiles.
Introducing Second-look Waterfall by Turns, within ServiceTitan Integrated Financing at no additional cost
ServiceTitan Integrated Financing features an automated second-look waterfall of lenders that allows you to close more jobs, while managing your costs, by giving more options to customers previously declined by other lenders.
If the first-look lender declines an application, Turns’ waterfall solution steps in to automatically find the best offers from a range of lenders, from backup prime to no-credit-required leases. We’ve enhanced our current system to include the full waterfall behind all first-look provider declines. This ensures better financing terms, lower fees, and more job approvals, leading to increased revenue opportunities.
Your customer will then get an instant decision with financing terms suited to the customer’s credit profile. If the customer accepts the second-look offer, you can proceed with the job. Since this process is seamlessly integrated within ServiceTitan, your team can reduce manual work like switching screens across multiple lenders and save time.
Increase approval rates
Close more jobs with approval rates up to 94%** by adding Turns as your second-look financing provider.
Control your financing costs
Manage your financing costs with average contractor fees of 6.7% (up to a maximum of 9.9%)***. Second-look financing doesn’t have to cost more.
Quick and seamless process
Your technicians can quickly transition from first-look to second-look if a customer is initially declined, and get an instant decision – all in the same screen.
All financing is provided by third-party financing partners; ServiceTitan is not responsible for any credit decisions.
*Lost jobs based on certain ServiceTitan customers using Integrated Financing from August 2024 to January 2025. Your own results may vary.
**Approval rates based on data provided by Turns, and represents the aggregate approval rates for prime lender and Turns Second Look Waterfall.
***Contractor financing fees may vary based on the selected plan and are subject to individual lender terms.
Turns Second-Look Waterfall is available at no additional cost to ServiceTitan customers, get started today.
