So how does a company like Ecopod get around the need for supplier and client trust, and security of finance?
Ecopod already supports their clients with the financing side of a project. Existing relationships with a finance company and mortgage broker ensure that clients, regardless of whether they own the land their future dwelling will reside on or not, can access funding to realise their building dreams. The gap Ecopod identified was to provide peace of mind to customers (once finance was approved), that Ecopod would deliver the build.
Ecopod’s terms and conditions clearly outline that on project completion, following receipt of the final project payment, the customer then receives full title of the dwelling. Despite this reassurance, Ecopod has been finding that current market conditions, and recent construction company liquidations have made their customers uncertain about committing to a new build.
To get around these issues, Paul heard about IPromise through a colleague. He commented “access to finance and security of finance is front of mind for many of our customers”. The fact that IPromise provides a trust account to secure funds until certain, agreed milestones are reached are helpful to build trust with customers and assure them that they’ll receive the final product. Potentially, IPromise is also a straightforward way to placate lenders as well – releasing funds at key milestones is a common way for banks to structure their lending, so IPromise’s trust account model could be useful in supporting a bank application for finance.