Every contractor knows the moment. You walk a homeowner through the estimate, they nod along, and then they see the total. “Let me talk it over and get back to you.” Sometimes they do. Often they call the next contractor, or they patch the problem instead of fixing it.
Offering client financing changes that conversation from “Can I afford $14,000?” to “Can I afford about $320 a month?” Here are six reasons more roofing, HVAC, remodeling, plumbing and repair contractors are adding financing to every estimate, and how to do it without taking on any lending risk yourself.
1. You win bids you’re currently losing on price
Homeowners rarely have five figures set aside for a new roof or a replacement system. When two contractors quote similar work and only one offers a monthly payment, that one is much easier to say yes to. Financing lets you compete on the quality of your work instead of on who can cut their price the most.
2. Customers choose the job they actually need
Without financing, homeowners often pick the cheapest option on the estimate: the repair instead of the replacement, the basic package instead of the right one. With a monthly payment, the gap between options shrinks. A homeowner deciding between a $9,000 and a $14,000 system is comparing monthly payments that are much closer together, so more of them choose the job that fixes the problem for good.
3. You get paid upfront, not over months
When a lender funds the job, the lender pays you and the homeowner repays the lender. You aren’t waiting on invoices, chasing final payments or carrying receivables. That frees up cash for materials, crews and the next job. If you’d rather keep the interest and run your own plans, Client Financing’s LMPP pays you weekly as the customer pays, with no merchant fee, and our team handles billing and collections.
4. Emergency jobs close the same day
When a furnace dies in January or a roof leaks after a storm, homeowners need the work now, not after payday. A financing application they can complete on their phone in a few minutes means you can schedule the job before you leave the driveway.
5. More homeowners get approved
A single financing company approves a certain range of credit scores and declines the rest. Every decline is a job you already estimated and probably lost. With Client Financing, one application moves the homeowner through 10+ BNPL and consumer lenders, from prime to sub-prime, then to Everyone Is Approved programs. A homeowner declined by the first lender can still be approved further down the waterfall, without filling out a second application.
6. It builds referrals and repeat work
Homeowners remember the contractor who made a stressful repair manageable. A positive financing experience leads to reviews, referrals to neighbors and a call back when the next project comes up. And because the customer chose a payment they’re comfortable with, you avoid the friction of collecting a large balance at the end of the job.
An example
Illustration only. Real offers depend on the lender or program and the application.
An HVAC contractor quotes a $12,000 system replacement. The homeowner’s credit score was hurt by a medical bill two years ago, and the first two lenders decline. The application continues down the waterfall automatically, and a sub-prime lender approves 48 months at 12.99%, roughly $322 a month.
The homeowner signs that afternoon. The contractor is paid upfront by the lender, minus that lender’s merchant fee, and the install goes on next week’s schedule. With a single lender, the job would have stopped at the first decline.
How to talk about financing with homeowners
The way you bring up financing matters as much as having it. A few phrases that work on the job site:
- Lead with the payment. “The full replacement is $12,000, or about $320 a month if you’d rather spread it out.” Saying both numbers together makes financing feel like a normal option, not a last resort.
- Normalize it. “Most of our customers pay monthly on a job this size.” Homeowners are more comfortable when they know they aren’t the only one.
- Make applying easy. “I’ll text you the link. It takes a few minutes and shows your options right away.” Then stay while they apply, so you can answer questions and schedule the job.
Which jobs to offer financing on
Offer financing on any job over about $1,000. In practice, that covers most of the work that stalls on price: roof replacements, HVAC systems, water heaters, electrical panel upgrades, sewer line repairs, kitchen and bath remodels, windows, siding and foundation work. Smaller repairs can stay pay-in-full, but showing a monthly option on bigger estimates gives homeowners a reason to approve the full scope instead of the minimum.
How to add financing to your estimates
- Set up your lending waterfall. A real person on our team calls within one business day, sets up your lenders and gives you an application link for your business. There’s no long-term contract and no minimum volume.
- Show the monthly payment on every estimate. Put an example monthly payment next to the total, and include the application link in the estimate email or text.
- Train your techs and salespeople. Bring up financing early, before price becomes the objection. Our onboarding team helps train your staff on how to present it.
- Use the merchant portal. See every application, approval and contract across all lenders in one place, so you can follow up with homeowners who are approved but haven’t signed.
What it costs
On lender-funded jobs, the lender pays you upfront minus its merchant fee, which varies by lender and program. On LMPP plans there’s no merchant fee: you keep 90% of what’s collected and Client Financing keeps 10%. Interest rates to homeowners range from 0% to 29.99% depending on the lender, program and credit profile.
Ready to offer financing? Client Financing provides customer financing solutions for businesses through one application that reaches 10+ lenders. See how it works for your business: customer financing for contractors.
FAQ
Do contractors need to lend their own money to offer financing?
No. The lender or program funds the job and the homeowner repays them. You get paid upfront on lender-funded jobs, or weekly through LMPP if you choose to run your own plans.
Can homeowners with bad credit get financing for repairs?
Yes. Applications move from prime lenders to near-prime and sub-prime lenders, then to Everyone Is Approved programs, so homeowners with limited or challenged credit can still get an offer.
What kinds of contractors can offer financing?
Roofing, HVAC, plumbing, electrical, remodeling, solar, windows and doors, pools, landscaping and most other home improvement trades. See home improvement financing.
Will offering financing slow down my sales process?
No. Homeowners apply on their phone in minutes and see their options right away, so financing usually shortens the time from estimate to signed job.
Ready to stop losing jobs on price? Get started and our team will set up your financing waterfall.