How to Offer Financing as a Contractor: To offer financing as a contractor, you partner with a third-party lender (Wisetack, Hearth, GreenSky, Synchrony, or Service Finance), submit a dealer application, pay a dealer fee of 4 to 15% per financed job, and present the payment option to customers before showing them the final price. Customer decisions arrive in 30 seconds to 5 minutes. You get paid within 2 to 3 business days of job completion. Subject to lender approval.
How to Offer Financing as a Contractor (Step-by-Step From Setup to First Approved Customer)
More than half of all home improvement projects are financed. That is not a niche trend. It is the standard. According to industry data, 55% or more of homeowners who get significant work done choose monthly payments over a lump sum. If you are not offering that option, you are not losing one or two deals a year. You are losing a third of your pipeline.
The contractors who close the most work are not always the cheapest or the fastest. They are the ones who make it easy to say yes. Monthly payment plans make it easy to say yes. A $12,000 HVAC replacement sounds heavy. A $189 per month payment over 72 months? That sounds manageable. Same job. Different conversation.
This is the complete guide to how to offer financing as a contractor, from choosing your program and submitting your dealer application to running your first financing conversation and tracking your close rate improvement over time. Follow these eight steps in order and you will have your first approved customer within a week. Read the companion overview at offer financing to your customers for the strategic case, then come back here for execution.
Why Offering Financing Is Now a Baseline Expectation
Customers do not see contractor financing as a bonus anymore. They expect it. Big box retailers offer it. HVAC manufacturers push it. Roofing companies advertise it. When a homeowner calls three contractors for quotes and two of them mention monthly payment options in the first conversation, the third one is already behind.
The data backs this up. Research from in-house financing platforms shows that contractors who offer payment plans close up to 30% more deals compared to those who do not. The average job size also increases. Customers who finance spend more on scope upgrades because the monthly payment difference on a $2,000 add-on is small. Without financing, that same upgrade never gets discussed.
Alternative lending platforms have made this easy to set up. You do not need to become a lender. You do not need a lending license. You connect with a licensed financing partner, they do the credit work, and you collect your payment within days of finishing the job. The process is faster and simpler than most contractors expect. According to Contracting Empire’s guide to offering financing, most contractors who go through setup report their first approved customer within the first week of activation.
If you want more background on business financing for your own operation as well as your customers, see our business loan for your contracting business overview, which covers working capital and short-term financing options alongside customer financing programs.
Step-by-Step: How to Offer Financing as a Contractor
These eight steps take you from zero to your first approved customer. Work through them in order. Do not skip the compliance step. It is shorter than you think and matters more than most guides admit.
Step 1: Choose the Right Financing Program for Your Trade
Five platforms dominate contractor customer financing in 2026: Wisetack, Hearth, GreenSky, Synchrony Home, and Service Finance Company. Each has a different focus, fee structure, and minimum project size. Match the platform to your trade and average job size before you apply.
- Wisetack: Built specifically for home service contractors. Integrates directly with Housecall Pro, Jobber, and ServiceTitan. Minimum project $500. No minimum credit score published but approves a wide range. Dealer fee varies by plan. Fast customer approval: under 60 seconds in most cases.
- Hearth: Strong for HVAC, roofing, and general contractors. Mobile app built for field use. Offers both installment loans and lines of credit. No integration required. Minimum project $1,000.
- GreenSky: Higher average project size ($5,000 and up). Popular with kitchen and bath remodelers. Promotional 0% APR periods available. Requires dealer application and approval process that can take 3 to 7 days.
- Synchrony Home: Best for established contractors doing larger projects ($10,000 and up). Recognizable brand name customers trust. Longer approval process but lower dealer fees for qualified dealers.
- Service Finance Company: Strong fit for HVAC, solar, and home improvement trades. Offers next-day funding for contractors after job verification. Mobile-friendly application for customers.
For most small and mid-size contractors just getting started with financing, Wisetack or Hearth are the fastest path to activation. Both have mobile apps, short dealer applications, and approval timelines measured in days rather than weeks.
Step 2: Submit Your Dealer Application
Every platform requires a dealer application. This is not a consumer loan application. It is your business registering as an authorized contractor who can present financing to customers. The process is straightforward.
Standard documents required for dealer applications across most platforms: business license, Employer Identification Number (EIN), business bank account information, and sometimes a voided business check. Most platforms prefer at least one to two years in business and a reasonably clean personal credit profile for the primary owner. Applications take between one and five business days to process.
Once approved, you receive a dealer ID or access code that links every customer transaction back to your business. Guard that ID. It is how you get paid and how the platform tracks your payout history.
Step 3: Know What You Pay and When
Dealer fees are the cost you pay to offer financing. Think of them as a cost of sale, the same as a credit card processing fee. Dealer fees typically run between 4% and 15% of the financed amount. The fee depends on the loan terms offered to the customer. Lower-rate, longer-term loans cost you more because the lender takes on more risk.
Example: A customer finances a $10,000 HVAC install at a promotional low rate. Your dealer fee is 8%. You net $9,200. The customer pays $10,000 over their loan term. The lender collects the difference. You still closed the job you might have lost without financing, and you got paid within 2 to 3 business days of job completion.
The dealer fee is charged when the lender funds the transaction, not when the customer applies. You do not pay anything if the customer is declined or does not proceed. Cash flow management gets easier once you account for this cost in your pricing. Many contractors build it into their labor rates or material markups so the fee does not erode margin.
Step 4: Understand Your Compliance Obligations (It Is Simpler Than You Think)
Many contractors hesitate here. They assume offering financing means getting a lending license or filing regulatory paperwork. It does not. The licensed lender holds the lending license. You are a dealer or referral partner. Your compliance obligations are minimal, but they matter.
You must not make false representations about credit terms. If Wisetack offers 0% for 12 months and then a 19.99% APR, you cannot tell the customer it is 0% forever. Let the lender’s application screen explain the exact terms. Your job is to introduce the option, not to explain the math.
Always let the lender communicate the exact loan terms directly to the customer. Present the monthly payment as an estimate. Say something like “starting around $X per month” and then direct the customer to the application for exact numbers. The lender’s disclosures, required under the Truth in Lending Act, cover the legal requirements. You stay clean by not going beyond the introduction. See TrueCore Capital’s overview of contractor financing compliance for additional context on contractor-specific obligations.
Step 5: Build Your Financing Sales Script
The script matters. Contractors who bring up financing after showing the final price lose deals. Customers see a big number, go into sticker shock, and the conversation stalls. The better sequence: introduce financing before or alongside the quote.
A simple, field-tested script:
“Before I walk you through the pricing, I want to mention we offer monthly payment plans through our financing partners. Many of our customers use them. Depending on what you choose, payments start around $X per month. Want me to run the numbers alongside the quote so you can see both options at once?”
This reframes the conversation. Now the customer is comparing $12,000 total versus $189 per month, not comparing your price to a competitor’s price. The monthly number usually wins. When the customer says yes to that question, you hand them the financing application link or open the app on your tablet and let them apply. Subject to lender approval.
Step 6: Train Your Technicians and Sales Reps
Your team in the field runs this program, not you. Train every technician and sales rep who does in-home estimates. The training does not need to take long. One hour of role play covers the essentials.
Role play three scenarios: the customer who brings up budget concerns early (easy win for financing), the customer who asks what the interest rate is (redirect to the application for exact terms), and the customer who says they want to pay cash anyway (acknowledge it, leave the option open, move on). Your reps need to feel comfortable saying the script out loud before they say it in front of a homeowner. Run through it until it sounds natural, not rehearsed. A confident presentation closes more deals than a perfect script delivered awkwardly.
Step 7: Document and Track Every Job
The process for a financed job follows a clear sequence. Customer fills out the financing application on your tablet or via a text link you send them. The lender reviews and decides, typically within 30 seconds to 5 minutes. Customer accepts the loan offer. You complete the job. Lender verifies completion (usually a phone call to the customer or a confirmation form you submit). Lender pays your business within 2 to 3 business days of verification.
Keep a record of every financed job: the customer name, the platform used, the loan amount, the dealer fee, and your net payout. This becomes your business financing history. It shows cash flow patterns, your most efficient financing platform, and where the margin sits on financed jobs versus cash jobs. Good documentation also protects you if there is ever a payout dispute with the lender.
Step 8: Measure Your ROI Month Over Month
Track two numbers from Day 1: your close rate before financing and your close rate after. Most contractors do not know their close rate at all. Start now. If you run 20 estimates per month and close 8, that is 40%. After you introduce financing, measure again at 30, 60, and 90 days.
Track your average job size as well. Customers who finance tend to approve larger scopes because the monthly payment difference on additional work is small. A customer who finances a $9,000 roof might add a gutter system for $1,200 more. That upgrade is $17 per month on a 72-month loan. Easy yes. Without financing, that upgrade almost never gets approved because the sticker shock on $10,200 stops the conversation. Business growth shows up first in your average job size, then in your overall monthly revenue.
What If You Also Need Capital for Your Own Business?
Offering financing solves the customer’s problem. Working capital solves yours. These are two separate tools and you need both.
Customer financing helps you close jobs. Business capital helps you cover materials before a job pays, bridge payroll during a slow season, buy equipment, or take on a second crew. Short-term financing for your own operations works independently of whatever customer financing program you run.
Contractor Loaners connects you with alternative lenders who fund business working capital fast. We have connected contractors with funding from $5,000 to over $500,000, with decisions within hours and funding within a day in many cases. Subject to lender approval. If you are building out both sides of your financial toolbox, start with contractor funding solutions for an overview of business capital options, then layer in your customer financing program using the steps above. For a side-by-side look at the best customer financing programs available for contractors, see our best customer financing options comparison.
About Contractor Loaners
Contractor Loaners is a home service contractor funding partner connecting contractors across the country with business financing. We connect you with lenders offering working capital, short-term business loans, and alternative lending solutions built for the construction and home service trades. We are not a direct lender.
To date, we have connected contractors with over $3 billion in funded deals. We work with 465 verified Trustpilot reviews and maintain relationships with multiple lending partners to give you more options in one place. Applications are fast. Decisions often arrive within hours. Funding within a day is common for qualified applicants. Subject to lender approval.
For questions about your specific situation, visit our contractor financing FAQ or reach out to our team directly.
Frequently Asked Questions About How to Offer Financing as a Contractor
Do I Need a Lending License to Offer Financing as a Contractor?
No. You do not need a lending license. The third-party financing partner (Wisetack, Hearth, GreenSky, etc.) holds the lending license. You register as an authorized dealer. Your role is to introduce the option and direct customers to the application. The lender handles credit decisions, disclosures, and all regulatory requirements. Your compliance obligation is to not misrepresent loan terms.
How Long Does It Take to Get Set Up to Offer Financing as a Contractor?
Most dealer applications take one to five business days to process. Once approved, you receive your dealer credentials and can begin presenting financing to customers immediately. Some platforms, including Wisetack, have streamlined their approval process so contractors can be active within 24 to 48 hours of submitting a complete application.
What Is a Dealer Fee and How Does It Affect My Margin?
A dealer fee is the cost you pay to offer a customer financing program. It typically runs 4% to 15% of the financed amount, depending on the loan terms offered to your customer. Lower promotional rates for customers cost you a higher dealer fee. Many contractors build the fee into their pricing structure so it does not erode margin. On a financed job you would otherwise have lost, the dealer fee is a cost of sale, not a penalty.
How Fast Do Customers Get Approved?
Customer approval through platforms like Wisetack and Hearth typically takes 30 seconds to 5 minutes. The customer fills out a short application on your tablet or a link you text them. The lender runs a soft credit check and returns a decision. Subject to lender approval. If approved, the customer accepts the loan offer and you complete the job. You get paid within 2 to 3 business days of job verification.
What Happens If the Customer Is Not Approved?
If the customer is not approved for financing, you are not charged any dealer fee. The situation reverts to a standard cash or check transaction. Some platforms offer tiered approvals where a customer who does not qualify for a 0% promotional rate may qualify for a higher-APR installment loan. It is worth having a backup financing option ready for customers who are declined on the primary offer. Subject to lender approval for all financing options.
Get Your Contractor Financing Program Running This Week
You now have the full picture. Eight steps, a working sales script, compliance basics, and the ROI tracking framework to measure everything. The only thing left is the application.
Contractor Loaners works with contractors who want to grow on both fronts: customer financing programs and business working capital. We connect you with lending partners who move fast. Decisions within hours. Funding within a day for qualified applicants. Over $3 billion connected in funded deals. Subject to lender approval.
Download the contractor financing setup checklist, get your questions answered, and get funded. Call 800-664-0173 or apply at get a free contractor funding quote today.
Do not wait for the next big job to make financing a priority. Make it standard practice now and watch your close rate follow.
