The best customer financing for contractors comes from third-party programs like Wisetack, Hearth, and GreenSky. These platforms handle all underwriting, carry zero repayment obligation for you, and get approved customers funded in under 60 seconds. Dealer fees run 4 to 15 percent, and you collect your full project payment (net of fees) within two to three days of job completion, subject to lender approval.
The Best Customer Financing Options for Contractors (And How to Pick the Right One)
Your customer loves your quote. Then they see the total. Silence. You lose the job to a competitor who offered “easy monthly payments.” That scenario plays out thousands of times a day across the trades, and it costs contractors real revenue every single month.
More than 55% of home improvement projects get financed. That number is not a coincidence. It means homeowners budget in monthly payments, not lump sums. When you offer financing at the point of sale, you remove the biggest obstacle between you and a signed contract.
This guide breaks down the three main types of customer financing for contractors, explains what each one costs you, and tells you exactly which option fits your trade. By the end, you will know how to stop leaving money on the table.
Why Customer Financing Changes the Math on Every Job
A $12,000 HVAC replacement sounds like a lot. At $200 a month on a 0% promotional plan, it sounds like a no-brainer. Same job, same price, completely different conversation. That shift in how customers perceive cost is why financing programs consistently lift close rates by 20 to 30 percent, according to industry estimates.
Think about what your customers face without your help. On their own, they turn to banks, personal loans, or alternative lending sources, wait days for approval, and pay 12 to 20% APR. Or they take your financing option on the spot, get approved in seconds, and start at 0% for the first 12 months. When you control the financing conversation, you control the sale.
There is also a business growth angle here. More closed jobs means stronger cash flow management and higher revenue per sales call. You spend the same time on every estimate. Financing turns more of those estimates into signed contracts. That is the math that matters for your small business financing strategy.
Minimum project sizes for most programs start at $500 to $1,000. If your average ticket is above that, you qualify to offer financing today.
The Three Main Types of Customer Financing for Contractors
1. Buy Now, Pay Later (BNPL)
BNPL platforms like Wisetack integrate directly into your sales process. Your customer applies on their phone or tablet during your estimate. Approval decisions arrive in seconds using a soft credit check. Customers with scores of 600 or above typically qualify.
You pay a dealer fee of around 4% per transaction. That is your cost to offer 0% APR to the customer. After the job finishes and the customer confirms completion, the lender pays you in two to three days. You carry no repayment obligation. If the customer misses a payment, that is between them and the lender.
BNPL works best for projects under $15,000. Fast transactions, low dealer fees, and minimal paperwork make it the simplest entry point for contractors who have never offered financing before.
2. Third-Party Lender Programs
Platforms like Hearth, GreenSky (now Goldy), and Synchrony go deeper than BNPL. They offer larger loan amounts, longer promotional periods, and full-service underwriting and collections. Your customer applies, gets approved, and the lender handles everything from that point forward.
Dealer fees on these programs range from 4% to 15%, depending on the promotional period length and the customer’s credit score. A 12-month same-as-cash offer costs you more in fees than a standard 6-month plan. That is the trade-off. Longer promos close bigger jobs.
These programs suit contractors running larger average tickets: full home remodels, solar installations, or whole-home HVAC replacements. The underwriting handles higher amounts, and the lender absorbs all collection risk.
3. In-House Financing
In-house financing means you fund the payment plan yourself, either directly or through a bank partnership. You set the terms, own the customer relationship, and collect every payment. You also absorb every default risk.
This option makes sense for contractors with strong working capital reserves and a steady, repeat customer base. Most trade contractors skip it entirely. The cash flow management burden is high, and third-party programs deliver the same sales lift without the risk.
How to Pick the Right Program for Your Trade
Not every financing program fits every contractor. Your trade determines what your customers need and what you will pay in dealer fees.
General contractors run the widest range of project sizes. A BNPL platform covers smaller jobs. A third-party lender program handles the big remodels. Keep both options active and let the project size guide which one you offer. For more on contractor financing frequently asked questions, see the Contractor Loaners FAQ page.
HVAC contractors sell high-ticket equipment replacements. A new system runs $8,000 to $20,000 in most markets. A third-party program with a 12-month same-as-cash option converts hesitant buyers into signed contracts on the same call. Speed of approval matters here. Your tech should not sit on-site for hours waiting for a financing decision.
Roofing contractors compete hard on price. Financing gives you a way to compete on value instead. A customer who does not have $14,000 today says yes to a monthly plan immediately. Programs that approve in under 60 seconds keep your estimate calls moving fast.
Solar contractors often work with specialty green energy financing products, like those from Sunlight Financial or Mosaic. These programs offer longer repayment terms (10 to 25 years) that match the long payback period for solar installs. Check whether a general BNPL platform covers your average ticket before defaulting to industry-specific lenders.
Across all trades, the right program is the one your customers get approved for and that you afford to offer on every job. Start with one platform, learn the fees, and add a second option for larger projects.
What Your Customers Want When They Ask About Financing
When a customer asks “do you offer financing?”, they are not asking about APR tiers. They want to know one thing: will I say yes today without draining my savings account?
Give them a clear answer. “Yes, we offer 0% for 12 months on approved credit. You apply right here and get an answer in about 60 seconds.” That sentence closes jobs. Anything longer or more complicated loses them.
Customers also care about credit impact. Most programs use soft credit pulls for pre-qualification, which means no hit on their score for checking their options. Lead with that fact. It removes a major objection before it comes up.
Finally, customers want to know their options if they do not qualify for the best rate. A good financing platform offers tiered approvals. A customer who does not qualify for 0% often qualifies for a 9.99% plan instead. You close a smaller percentage at a higher cost, but you close more than zero. Check out how to offer financing as a contractor for a field-level breakdown of the approval conversation.
The Real Cost to You as the Contractor
Dealer fees are real. Budget for them like any other cost of doing business. On a $10,000 job with a 6% dealer fee, you net $9,400. On the same job with an 8% fee on a promotional plan, you net $9,200.
Compare that to the alternative: losing the job entirely. You net $0 on a job you do not close. A 6 to 8% fee on a closed job beats a 100% loss every time.
Some contractors mark up their prices slightly to cover financing fees, the same way they factor in material costs or subcontractor rates. Others treat the fee as a marketing cost, like paying for lead generation. Either approach works. The point is to know your numbers before you offer financing on every job, not after.
Funding speed is another factor. Most third-party programs pay within two to three business days of job verification. That is faster than clients who pay on net-30 terms. Financing improves your cash flow compared to traditional invoice collection. For a deeper look at cash flow management for seasonal trades, see financing strategies for seasonal contractors.
About Contractor Loaners
Contractor Loaners connects trade contractors with a network of lenders offering both business funding and customer financing solutions. We are not a direct lender. We match you with the right funding option for your situation, subject to lender approval.
Over $3 billion in funding connected. More than 465 verified Trustpilot reviews. Decisions within hours. Funding in as little as one business day. Business funding starts at $5,000.
Whether you need working capital to cover payroll between jobs, or you want to build out a customer financing program that closes more estimates, we have contractor funding solutions built around how the trades work. Get your questions answered at our contractor financing frequently asked questions page, or reach out directly for a personalized review.
Frequently Asked Questions About Customer Financing for Contractors
What credit score do customers need to qualify for contractor financing?
Most BNPL and third-party programs set their minimum at 600. Some platforms offer tiered approvals, meaning customers below that threshold often qualify for a higher-rate plan instead. Approvals use a soft credit pull for pre-qualification, so checking options does not affect the customer’s score. A hard pull only happens when the customer formally accepts a loan offer.
Does the contractor carry any repayment risk on third-party financing?
No. On BNPL and third-party lender programs, the customer repays the lender directly. You receive your payment (net of dealer fees) after job verification. If the customer defaults, that is the lender’s problem, not yours. Your obligation ends when the job is confirmed complete. This is one of the biggest advantages of third-party programs over in-house financing.
How fast do contractors get paid after offering customer financing?
Funding speed varies by platform. Most BNPL and third-party programs pay the contractor within two to three business days of job completion and customer verification. Some platforms pay same-day. Compare payout timelines when you evaluate programs, especially if tight cash flow is an issue for your business.
What is a dealer fee, and how does it affect my profit margin?
A dealer fee is the percentage of the loan amount that the financing platform charges the contractor as their cost of offering the program. Fees typically range from 4% to 15%, depending on the promotional period and the customer’s credit profile. A 12-month 0% promo costs more than a 6-month plan. Factor the fee into your pricing the same way you would any other cost of doing business. Most contractors find that the increase in close rate more than offsets the fee on a per-job basis.
Ready to Start Offering Financing to Your Customers?
Every estimate you run without financing is a job you risk losing to a competitor who offers it. The contractors who close more jobs are the ones who make it easy for customers to say yes on the spot.
Get matched with the right financing partner for your trade and your average project size. Contractor Loaners connects you with lenders who specialize in the trades. Decisions come fast. Funding comes faster.
Call 800-664-0173 now, or get a free contractor funding quote at contractorloaners.com. Read more contractor business funding tips on the Contractor Loaners blog. Subject to lender approval.
