Dive into a new lending opportunity with pool and spa and empower your institution to offer diverse, customer-focused financial solutions.
In today’s limited housing market, homeowners are increasingly opting to enhance their existing homes rather than seeking new properties. Home improvement projects, such as pool and spa installations are on the rise, as homeowners look to design their dream homes at their current residence.
For credit unions and banks, diving into the pool and spa lending segment can be an exciting opportunity to diversify your portfolio while taking advantage of growing consumer interest. With numerous advantages, this lending segment offers growth potential for lenders, with options for varying levels of risk and loan length. When offering these loans through embedded lending, today’s financial institutions not only have the chance to offer a growing loan segment, but do so while increasing customer satisfaction by delivering a seamless borrowing experience.
Did you know?
The pool and spa market has a projected CAGR of 4.3% from 2022-2017.
Pool and spa projects are on the rise, as many Americans look to enhance their current homes, rather than moving.
Pool and Spa lending presents a wide range of loan options, including varying factors such as risk level, loan duration, and size. Explore the various advantages of pool and spa financing below.
From luxurious pool installations to smaller hot tub additions, pool and spa lending allows lenders to finance a variety of backyard projects. These ventures can typically range from $15,000 for a smaller upgrade, to $100,000 for an in-ground pool and landscaping.
By providing flexible and convenient financing options for backyard projects, you can stand out from your competition, diversify your customer base and foster longer customer relationships. Tailored services through embedded lending create a personalized experience, enhancing customer satisfaction and loyalty.
Borrowers investing in pool and spa projects are more likely to uphold their loan terms, as their loans are often backed by their home, and the project itself. Larger loans are also typically offered to borrowers with a positive borrowing history and higher income individuals—resulting in lower default rates and more reliable repayments for lenders.
Credit unions aiming to increase their deposits can leverage their fair loan terms and services. These loans help support larger projects that ultimately promote the growth of local businesses and can potentially turn merchants and borrowers into future depositors.
We can help you too.
How it works
Match with local pool contractors through the MerchantLinQ platform.
Boost your loan portfolio as contractors drive loan applications through a branded portal.
Advance your long-term goals by generating new customers to scale your institution’s deposits over time.
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