The single biggest close-rate booster most contractors aren't using: how it works, what it costs, and how to present it with confidence.
You just spent an hour with a homeowner. You measured the kitchen, talked through the design, answered every question, built real rapport. They love you. They want to work with you.
Then you hand them the estimate. $28,000.
And you watch their face change.
"We're going to need to think about it."
You know what that means. They're not going to think about it. They're going to put it off for six months, try to do half of it themselves, or call the cheapest guy on Yelp who'll do it for $16,000 and cut every corner.
Now imagine a different version of that conversation.
"The total is $28,000. And if it's helpful, we offer financing, most of our customers qualify for payments around $280 a month. Want me to show you the options?"
Their face doesn't change. They nod. They fill out a two-minute application on your tablet. They're approved by the time you get back to your truck.
That's financing. And it's the single biggest close-rate booster most contractors aren't using.
Let's get the obvious out of the way: most homeowners don't have $15,000 to $50,000 sitting in their checking account. Even the ones who can afford the project often prefer to spread the payments out. That's not because they're broke, it's because that's how people buy expensive things in 2026.
Cars, phones, appliances, furniture, medical procedures, everything comes with a payment option. Home improvement is the exception, and it shouldn't be.
Here's what happens when you start offering financing:
Industry data consistently shows that contractors who offer financing close 20% to 30% more jobs. That's not marginal. If you're closing 10 jobs a month, financing turns that into 12 or 13. Over a year, that's 24 to 36 additional jobs you would have lost to "let me think about it."
When the customer sees a monthly payment instead of a lump sum, they're more likely to say yes to the full project instead of the stripped-down version. That kitchen remodel goes from "just the countertops" to the whole thing. The customer gets the result they actually want, and your average ticket goes up.
The biggest deal-killer in residential contracting is the gap between the estimate and the decision. Every day that passes, the urgency fades. Financing collapses that gap. The customer can say yes right now, in your kitchen, because the payment fits their budget today.
National companies and franchise operations have been offering financing for years. It's one of their biggest advantages over independent contractors. When you offer financing too, you level the playing field without giving up any of what makes you better than them.
If you've never offered financing before, here's the mechanics. It's simpler than you think.
Step 1: You partner with a financing platform. You sign up, get approved, and set up your account. This usually takes a few days. The platform gives you a link or an app that your customers use to apply.
Step 2: You present financing on your estimates. When you give a customer a quote, you include a monthly payment option. "Your project total is $22,000, or approximately $220/month with financing." Most platforms give you a widget or calculator to generate these numbers automatically.
Step 3: The customer applies. They fill out a short application, name, income, Social Security number. Takes two to three minutes. They get a decision in seconds. Most platforms offer soft credit checks that don't affect their credit score until they actually accept a loan.
Step 4: They choose their terms. The customer sees their approved amount, interest rate, and payment options. They pick what works for them.
Step 5: You do the work and get paid. Here's the best part, you get paid in full by the lending institution when the project starts or is completed (depending on the platform and loan type). The customer makes their monthly payments to the lender, not to you. You're out of the equation.
You are not a bank. You are not lending money. You are not taking on risk. You're simply connecting your customer with a lender who makes the purchase possible.
There are several platforms designed specifically for home improvement financing. Here are the ones worth looking at.
Hearth is probably the most popular financing platform among residential contractors, and for good reason. It's designed specifically for home improvement, the setup is fast, and it lets your customer compare loan offers from multiple lenders in one place.
The customer fills out one application and sees offers from several lenders, different rates, terms, and monthly payments. They pick the one they want. This "marketplace" approach means more customers get approved, because if one lender declines them, another might say yes.
Hearth also has some nice extras: you can embed financing in your proposals, use their payment processing, and track everything in a dashboard. Their contractor support is solid.
Best for: Remodelers, roofers, and any contractor who wants a dead-simple way to offer financing on every estimate.
GreenSky has been in the home improvement financing space for over a decade. They work with major banks and offer a variety of loan products including promotional rates (like 0% APR for 12 months) that can be powerful sales tools.
The promotional rate programs are where GreenSky really stands out. Offering a customer "same as cash for 18 months" can be a huge motivator, especially on larger projects. The tradeoff is that promotional rate loans typically cost the contractor a dealer fee, usually 3% to 9% of the loan amount.
Best for: Contractors doing higher-ticket projects ($15,000+) who want promotional rate options to sweeten the deal.
Acorn Finance is similar to Hearth in that it's a marketplace, your customer applies once and gets offers from multiple lenders. Their network of lenders is large, which means good approval rates.
Acorn is particularly good for customers with lower credit scores. Their lender network includes options that go below the 640-650 FICO floor that some platforms require. If you work in a market where customers often have credit challenges, Acorn gives you more reach.
Best for: Contractors who want broad approval rates and work with a range of customer credit profiles.
Foundation Finance is a direct lender (not a marketplace), which means they control the entire process from application to funding. This can mean faster decisions and a more streamlined experience.
They offer both dealer-fee programs (where you pay a fee for better customer rates) and standard interest programs (where the customer pays market rates and you pay nothing). Their minimum credit requirements are reasonable, and they fund quickly.
Best for: Contractors who prefer working with a single lender and want a straightforward, no-marketplace experience.
This is the question every contractor asks first. Here's the honest answer: it depends on the program.
Many platforms offer loan products where the customer pays a market interest rate (typically 7% to 15% APR depending on their credit) and you, the contractor, pay nothing. No setup fees, no monthly fees, no per-transaction fees. The lender makes their money on the interest.
If you're just getting started with financing, this is the place to begin. You're adding a powerful sales tool to your business at literally no cost.
If you want to offer your customers better rates, like 0% for 12 months, or a lower APR, you typically pay a dealer fee. This is a percentage of the loan amount, usually 3% to 12% depending on the promotional terms.
Think of it like a credit card processing fee, but bigger. Is it worth it? Often, yes. If a 5% dealer fee on a $20,000 job ($1,000) is the difference between getting the job or losing it, that's a great ROI. You were going to profit $5,000 to $8,000 on that job. Paying $1,000 to close it is smart business.
Don't look at the dealer fee as a cost. Look at it as a customer acquisition cost. What are you paying per lead from Google Ads? From your website? From a marketing agency? Probably $50 to $200 per lead, and most of those leads don't convert.
A dealer fee on a job that's already in front of you, with a customer who's already said "I want to do this", that's the highest-ROI marketing spend you'll ever make.
This is where most contractors fumble. They sign up for a financing platform, mention it briefly on their proposal, and wonder why nobody uses it.
Financing is only powerful if you present it with confidence.
Don't bury it in the fine print. On your estimate, right next to the total price, show the monthly payment. "$24,500 or approximately $245/month with approved financing." Let the customer's eyes go to that number.
When you're reviewing the estimate in person, say it out loud. "Most of our customers finance projects like this. It's quick to apply, and payments usually come out around $250 a month. Want me to walk you through it?"
Don't wait for the customer to ask. Don't make it awkward. Treat it like a normal part of how you do business, because it is.
Some contractors only mention financing when the customer flinches at the price. That positions it as a consolation prize, "since you can't afford it, here's a payment plan."
Instead, present it as a feature. Something you offer because it's convenient, modern, and what your customers prefer. Frame it the way car dealerships do: financing is the default, paying cash is the option.
When the customer says "show me," you should be able to pull up the application instantly. Two taps. If you have to go home, email them a link, and hope they apply later, you've lost the moment. Carry the app on your tablet and let them apply right there.
"Totally understand. A lot of our customers feel the same way. The nice thing is, most of these loans have no prepayment penalty, so you can pay it off whenever you want. Some folks just like having the option to spread it out and keep their savings intact."
"It depends on your credit, rates typically range from 7% to 15%. The application takes two minutes and gives you your exact rate with no impact on your credit score. Want to take a look?"
"Of course. If it's helpful, I can send you the estimate with the monthly payment breakdown so you can review it together tonight. And if they have questions about the financing, they can apply right from their phone to see what they'd qualify for."
"Makes sense. Just keep in mind that material costs have been going up, the same project six months from now will probably cost more. Financing lets you lock in today's price and start enjoying the finished project now instead of waiting."
Offering financing isn't about pressuring people into debt. It's about removing the biggest barrier between your customer and the project they want. Most homeowners are already comfortable making monthly payments, for their car, their phone, their furniture. Home improvement shouldn't be the one category where they have to write a giant check or wait.
Set up an account with one of the platforms above. Start including monthly payments on your estimates. Mention it confidently on every single appointment.
Within a few months, you'll wonder how you ever sold without it.
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