Do Fence Companies Offer Financing?
What do contractors wish homeowners knew about buying a new fence?
“It’s probably going to cost more than you think,” says Taylor Wick, Director of Marketing at Rick’s Custom Fencing & Decking in Hillsboro, Oregon.
She estimates that the average cost of a fence replacement in the Pacific Northwest is around $6,000 to $7,000.
“It’s a necessary expense, and it’s one that you don’t make very often, so it can be a little surprising.”
However, she also cautions that you get what you pay for. Spending more for quality and durability now can ensure that you won’t need a new fence for several years. Luckily, financing is an option, and you can get it through many fence companies themselves.
Financing can bring the fence of your dreams closer
Many fence companies offer financing options to allow you to pay for this expense over several months or years. That $6,000 to $7,000 seems less intimidating carved up into smaller monthly payments.
Rick Wilson, Director of Contractor Success at Acorn Finance, says some homeowners may have a knee-jerk urge to cut costs. He mentions a privacy fence, describing it as “dog-eared boards” that “butt up against each other so you can’t see through,” as a cheaper style of fence. But with financing, a homeowner can consider more expensive options.
“That’s where financing really makes a difference,” he says. You might realize that you could spring for a more stylish fence with higher quality materials, and “it may only raise your payment 20 bucks a month or so to get something that you really want.”
How does fence company financing work?
Fence companies aren’t banks. How do they offer this?
Mike McGinley, VP of Lender Relationships at Acorn Finance, explains: “If a company wants to offer financing to the consumer, they’ll work directly with a bank and get underwritten.” It’s essentially a bank-backed financial offer that the fence company gets qualified to pass on to you.
Acorn Finance, in addition to giving homeowners direct access to a network of high-quality lenders, also works with fence companies on financing options that they can offer to their customers. These are classified as “merchant loans,” and “they have promotional rates like 0% interest for 6 months or 12 months,” explains Wilson. “The merchant product can only be offered by contractors to their homeowners—the homeowner would have to go through the fence company to get those promo loans.”
$5,000-100,000
Loan Amount
|
6.99-25.49%
APR
|
2–12 years
Terms
|
660
Minimum Credit Score
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Disclaimer
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Types of fence company financing
Rick’s Fencing offers two financing options that are pretty common from fencing companies across the country: credit cards and personal loans.
Credit Cards
Rick’s Fencing offers the Wells Fargo Outdoor Solutions credit card, which enables them to feature a series of special offers.
“Our standard rate is 6 months, no interest,” Wick tells us, “but every once in a while we’ll offer a special through that credit card of 12 or 15 months.”
You apply for the card via a link on the Rick’s Fencing site. Once you’re approved, you’ll get your card within a couple of weeks.
If you can pay off your fence within the introductory no-interest period, this is a great way to buy your fence interest-free. But if you don’t, the interest rate kicks in, and an average credit card can have an interest rate of over 27% percent.
It’s kind of a race against the clock. You know your spending habits better than anyone, so ask yourself: How likely am I to pay off the card in time?
Wilson says, “I generally ask them, ‘Is that something that you do? Do you pay these things off?’ For the people that know they’re not going to pay it off in that amount of time, that’s where the traditional financing comes into play.”
Let’s talk more about traditional financing.
Personal loans
Rick’s Fencing offers personal loans underwritten by 1st Security Bank in Washington. As of May 2024, those loans hover around 10% interest with a payback period from 5 to 15 years. That interest rate can go up if you have a low credit score.
Wilson says Acorn Finance can find funding options for credit scores as low as 550. What if a homeowner’s score is below that? Wilson says, as long as the loan is over $5,000, “you’d probably want to talk to somebody to help you with it as a cosigner.”
Find someone you trust – and who trusts you – with better credit who can be responsible for your debt.
Which is better: Credit cards or a personal loan?
That depends on your financial situation, how much you need to finance, and ability to pay off the debt. Consider the benefits of each option:
Benefits of a credit card
- You probably already have one; no need to apply for more credit if so
- Simple to use
- May have an interest-free period
Benefits of a personal loan
- Lower interest rates than a credit card
- Fixed interest rates won’t increase suddenly
- The finance period may not start until after the fence is complete
“I’d say the Wells Fargo [credit card] tends to be more popular. I think any time people can get a no-interest option these days, they’re going to like that,” Wick says. “But the 1st Security loan tends to be popular when you’ve got a larger project that you want to fund over a couple years of payment.”
If your fence is part of a larger campaign of home improvement, along with a newly paved driveway and a new barbecue pit, a longer-term personal loan with a fixed interest rate may be a better fit than a deferred interest card.
What are the advantages of fence company financing?
In addition to getting financed through your fence company, you could go directly to your bank or head to Acorn Finance. What are some reasons to get financing through a fence company?
High-quality contractors
If you’re searching for a quality contractor, a fence company that offers financing is a great bet. Wick points out, “When a contractor is able to offer financing in-house, it is a good sign that they have longevity, that they’re going to stand behind their product, and that they’re going to help their customers to get all the options that they might need.”
This is because the contractor has to undertake a “KYB” (Know Your Business) to demonstrate their credentials to offer the loan. ”You have to do X amount of sales every year. You have to have been in business for four or five years. You can’t have any liens of judgment against your company,” McGinley says.
Someone in your corner
Wick mentions another advantage: “You have an advocate along the way.”
She maintains a hands-on approach to guide customers through their options. “Somebody who’s experienced with the product that the bank is selling, who knows what your options are, can help educate you on different opportunities. We want to make sure that we’re offering a wide range of how we can help facilitate that.”
Wilson of Acorn Finance is a huge proponent of that approach.
“I work with a lot of contractors,” he says, “and I’m helping them explain the financing options in the best way that it’s going to make sense to customers. That’s going to give them the best repeat business in the long run.”
Convenience
You’re already working with these fence companies, so why not wrap up the service and the financing in one neat package?
You see them every day, and they’re a one-stop shop for financing options. Why bring another party into the proceedings?
How Acorn Finance can help
Contractors work with banks, and even directly with Acorn Finance, to offer financing to customers. That means there’s a good chance the options you find with them are also available on Acorn—along with countless others, tailored to your needs. You can review a wide variety of high-quality lenders with a couple of clicks, get pre-qualified in seconds, and soon you’ll be surrounded by the fence of your dreams.
Comparing options on Acorn Finance? See if you prequalify for a personal loan without impacting your credit score.
Just answer a few questions to get personalized rate estimates from multiple lenders.
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