Unlocking New Opportunities with HELOCs
Open the door to bigger sales
The ability to secure high-ticket projects often depends on offering flexible financing options. From backyard pools to major kitchen renovations, the rising cost of materials and labor can make it hard for customers to commit to larger purchases. But one financing solution has grown in popularity for its ability to give merchants and their customers a way to manage big expenses: the Home Equity Line of Credit (HELOC).
Due to market realities like rising home values, and low interest rates resulting in fast growing equity for those who purchased during COVID, HELOCs have emerged as one of the most flexible and affordable financing solutions available today. For merchants, offering HELOCs can drive higher ticket sales, improve customer satisfaction, and give your business a competitive edge.
But why are HELOCs the financing solution of the moment and how can they benefit your business?
Let’s break it down.
The HELOC landscape
In today’s economic climate, merchants find themselves at a crossroads. With interest rates rising, the simplest path to sales may not be as straightforward as it once was. When interest rates were low, the low cost of capital and ease of securing financing was enough to drive customers through your doors. As rates climb, however, merchants must take a more intentional approach to engage customers and effectively meet their financing needs.
Record high home equity presents a unique opportunity for merchants willing to adapt. Homeowners today are sitting on a wealth of untapped resources, with many experiencing a substantial increase in home value. This equity can be transformed into financing solutions that enable homeowners to invest in necessary projects, from home improvements to major renovations.
Offering HELOCs with LoanStar
Merchants who traditionally shy away from offering financing options like HELOCs often do so because of perceived complications or lack of clear support. However, with LoanStar’s merchant-focused solutions, providing HELOCs is easier than ever. Here’s why merchants are increasingly turning to LoanStar to drive sales and customer satisfaction through HELOCs:
New revenue streams
Offering HELOCs can open new opportunities for growth. With more customers able to finance larger purchases, your average order value increases, and your business captures more revenue. LoanStar is here to support you in unlocking the full potential of HELOCs, providing the tools and expertise to grow your business and keep customers coming back.
Increased customer engagement
Through LoanStar’s tools and resources, merchants can easily promote HELOCs to their customers, helping them see the value in financing larger purchases. With better visibility and easy-to-understand options, you’ll find more customers willing to take advantage of the financing you offer, ultimately increasing both engagement and sales conversions.
Convenient applications
LoanStar makes the HELOC process hassle-free for merchants and customers alike. Our platform simplifies every step—from application to approval—allowing merchants to offer financing with minimal effort and maximum clarity through direct application links. Your customers will appreciate this quick and straightforward way to get the funding they need.
Comprehensive support
LoanStar doesn’t just provide a financing platform—we back it up with ongoing support from dedicated account managers to ensure you’re maximizing the potential of HELOCs and other financing options. From dedicated training for you and your team to customer support during the loan process, we’re here to help every step of the way. This ensures that both you and your customers feel confident using the platform, driving higher satisfaction and success rates.
The community-based lender advantage:
- Locally recognized brand name
- Local customer support
- Local credit underwriting & possible higher approvals
- Lower consumer rates with no merchant fees
- Longer loan terms available
- Lower contractor costs with a standard free program
- Rapid point of sale credit decisions
- No merchant transaction fees (paid direct via ACH)
- Co-branded portal—Your customers see your logo & lender’s logo
Ready to unlock new revenue streams with HELOCs?
Contact the LoanStar team to get started.