Customer Financing

Customer financing for contractors increases average ticket size by 30 to 40 percent and close rates by 15 to 25 percent on projects above $3,000. The best financing platform for most contractors in 2026 is Hearth, which operates as a multi-lender marketplace achieving 70 to 80 percent approval rates at dealer fees of 2.5 to 12 percent. For FSM-integrated buy-now-pay-later during the on-site sale, Wisetack ($3.9–9% dealer fee, 75–85% approval rate) connects natively with Housecall Pro, Jobber, and ServiceTitan. GreenSky/Goldman Sachs and Synchrony remain the traditional players for large-ticket HVAC and home improvement projects with deferred-interest promotional terms. The dealer fee is a cost of sale, not a processing fee — and the ROI math heavily favors offering financing.

Why Financing Closes More Jobs

A homeowner facing a $7,500 AC replacement has three reactions: yes (they have the money), no (they cannot afford it), or maybe (they want it but need a way to pay). Financing converts the “maybe” segment into “yes” by removing the upfront payment barrier. Instead of $7,500 today, the homeowner sees $125/month for 60 months. The project becomes affordable, and the contractor closes the job.

The data across the industry is consistent: contractors who offer financing on every estimate above $3,000 see average ticket increases of 30 to 40 percent. Homeowners who finance choose the Better or Best option (Part 11’s tiered pricing) instead of the cheapest Good option, because monthly payments make the upgrade incremental rather than a lump-sum decision.

Close rate improvement is equally significant. Without financing, a $7,500 estimate receives a “let me think about it” response 40 to 50 percent of the time. With financing presented alongside the estimate, that “think about it” rate drops to 20 to 30 percent. The technician is not selling a $7,500 project — they are solving a comfort problem for $125/month.

The Financing Platform Comparison

Hearth

Hearth operates as a multi-lender marketplace: when a homeowner applies, the application is submitted to multiple lending partners simultaneously, and the homeowner receives the best available offer. This marketplace model achieves the highest approval rates in the industry (70–80%) because declined applicants at one lender may be approved at another. For contractors whose customer base includes a range of credit profiles, Hearth captures approvals that single-lender platforms miss.

Dealer fees range from 2.5 to 12 percent depending on the promotional term and loan product. Shorter terms and lower promotional rates carry higher dealer fees. Hearth’s contractor dashboard shows real-time application status, funded amounts, and dealer fee calculations. Integration with most FSMs is available via Zapier.

8-Criteria Score: Trade Fit 4/5, Size 4/5, Integration 3/5, Mobile 4/5, Learning Curve 4/5, Pricing 4/5, Data Ownership 3/5, Support 4/5. Composite: 30/40.

Wisetack

Wisetack is the buy-now-pay-later (BNPL) platform built for field service. The technician presents financing on their phone or tablet during the on-site visit — the customer applies in 30 seconds with a soft credit pull, receives approval within a minute, and selects their payment term. The experience is frictionless: no lengthy application, no waiting for a callback from a lender, no lost momentum in the sales conversation.

Wisetack integrates natively with Housecall Pro, Jobber, and ServiceTitan, making it the most seamless in-FSM financing option. Dealer fees of 3.9 to 9 percent are competitive, and approval rates of 75 to 85 percent reflect the BNPL model’s broader credit acceptance. For contractors who want financing as a natural part of the estimate presentation rather than a separate step, Wisetack is the closest to frictionless.

8-Criteria Score: Trade Fit 5/5, Size 4/5, Integration 5/5, Mobile 5/5, Learning Curve 5/5, Pricing 3/5, Data Ownership 3/5, Support 3/5. Composite: 33/40.

GreenSky, Synchrony, Mosaic, and Service Finance

GreenSky (now Goldman Sachs) and Synchrony are the established names in home improvement financing. Both offer deferred-interest promotional terms (0% for 12–18 months) that appeal to homeowners, but dealer fees range from 3 to 18 percent depending on the promotional period. Longer deferred-interest terms carry higher dealer fees — a 0% for 18 months program may cost the contractor 12 to 15 percent of the financed amount.

Mosaic serves the solar and large home improvement market with longer-term loans (5–25 years) appropriate for projects above $10,000. Service Finance specializes in HVAC same-as-cash programs. Both target specific niches rather than serving the broad contractor market.

The Dealer Fee ROI Math

Dealer fees are the cost most contractors hesitate over. An 8 percent dealer fee on a $7,500 project is $600. That feels expensive. But the math tells a different story:

Without financing: $5,000 average ticket (customer picks Good option) × 60% close rate = $3,000 expected revenue per estimate.

With financing: $7,500 average ticket (customer picks Better option) × 75% close rate = $5,625 expected revenue per estimate, minus $600 dealer fee = $5,025 net.

Net gain from offering financing: $2,025 per estimate. The dealer fee is not a cost — it is an investment with a 337% return.

The contractors who resist financing because of dealer fees are leaving significantly more money on the table than the fee costs. Present financing on every estimate above $3,000. Let the customer decide. The numbers work overwhelmingly in the contractor’s favor.

Best-Fit Recommendations

Stage 2–4 (highest approval rates): Hearth. Multi-lender marketplace captures approvals other platforms miss. Best for contractors with diverse customer credit profiles.

Stage 2–4 (FSM-integrated BNPL): Wisetack. Highest score in the comparison (33/40). Frictionless on-site application integrated directly into Housecall Pro, Jobber, or ServiceTitan.

Stage 3–5 (large-ticket HVAC): GreenSky or Service Finance. Deferred-interest promotional terms for $8,000–$20,000+ system replacements.

Stage 3–5 (solar/large renovation): Mosaic. Long-term financing for projects where monthly payments must be very low to close.

Frequently Asked Questions

How much does it cost contractors to offer financing?

Dealer fees range from 2.5 to 18 percent of the financed amount, depending on the platform, promotional terms, and loan duration. A typical fee for a 12-month promotional term is 6 to 10 percent. The fee is deducted from the funded amount — you receive $6,750 on a $7,500 financed project at 10% dealer fee. The ROI calculation shows this fee is recovered 3 to 4 times over through higher ticket sizes and close rates.

Does financing hurt the contractor’s cash flow?

No — it improves it. The financing company pays the contractor in full (minus dealer fee) within 1 to 5 business days of project completion. The homeowner repays the financing company over months or years. From the contractor’s perspective, it is a cash sale with a discount, not a delayed payment.

Should contractors offer financing on every estimate?

On every estimate above $3,000, yes. Present financing as a payment option alongside full payment and ACH. Let the customer choose. Contractors who only offer financing reactively (“We have financing if you need it”) capture 30 to 50 percent fewer financed sales than those who proactively present monthly payment options alongside the total price.