We’ve all been there: The smell of fresh sawdust, a busy day filled with measuring tape acrobatics, and that sweet, sweet feeling of turning a client’s once-ho-hum space into a dreamy haven. You’re a home improvement contractor—part magic-maker, part financial advisor (whether you like it or not). Your customers often face a common hurdle: how to pay for their big-ticket renovations.
If you’ve ever had a client say, “We’re super excited about the new kitchen! But... let’s wait a year to save up,” you know the heartbreak. The good news is that offering a simple, hassle-free financing option can often turn that “maybe later” into a “please start tomorrow.”
In this lively guide, we’ll break down why you need consumer financing, how you can implement it without feeling like a pushy salesperson, and which features to look for in a home improvement financing software for contractors.
So strap on your tool belt, fire up your comedic spirit, and let’s dive right in!
“Why would I bother offering financing? Shouldn’t the homeowner handle all that bank drama?” Great question. If you have an unending supply of wealthy customers ready to drop tens of thousands of dollars in cash, you can skip the rest of this blog and go celebrate. But if you’d like to increase your deal sizes, close projects faster, and stand out from your competition, read on.
Let’s say you quote a client $15,000 for a deck overhaul. They blanch at the figure and postpone. Enter financing: If they can break that total into manageable monthly chunks, suddenly their dream deck isn’t so out of reach. Studies have shown that adding a financing option can boost the average project size by anywhere from 10% to 40%, depending on how well you incorporate it into your sales pitch (anecdotal industry data).
Financing removes the single largest obstacle to a quick “yes”: the inability to pay upfront. Clients who might spend weeks or months cobbling together funds can sign on the dotted line immediately when they see a convenient, well-explained loan option.
Many contractors still haven’t caught on to the power of consumer financing. If you’re the one offering it, you’ll stand out like a house with brand-new solar panels in a sea of old shingles.
Point-of-sale financing (more on that soon) often means you get direct payments, so you’re not waiting on the homeowner’s bank transfer or a complicated second mortgage to come through. Cha-ching.
Here’s some data to show just how big the opportunity is:
In short, homeowners are consistently investing in their properties, but they also rely heavily on financing options to make their home-renovation dreams come true.
Let’s talk about two primary methods:
This method involves the homeowner applying for a personal loan or line of credit through a bank, credit union, or specialized lender:
With POS financing, an integrated platform connects the homeowner to lenders right at the time of sale. Once approved, funds go directly to you, often in staged amounts:
Which is better? It depends on your style. Traditional consumer financing can work fine, but POS financing often shortens the sales cycle and improves your cash flow.
Let’s get practical. Offering home improvement financing can seem daunting at first. You might worry about complexities, fees, and the added responsibility. But here’s the sweet side:
But don’t worry, we’re not here to strong-arm you into thinking financing is the only way. It’s just a very powerful way to boost your projects.
Here’s the “shortlist” of must-haves when you’re shopping around for a home improvement financing platform:
For many contractors, branding is everything. Clients trust you—your logo, your website, your handshake—so the last thing you want is to send them off to a shady, third-party link. White labeling means you can offer financing under your own brand umbrella. It’s still powered by a financing platform behind the scenes, but the homeowner sees you as the provider.
Not every client has an immaculate 800+ credit score. Some might be rebuilding; others just have a short credit history. If your chosen financing software only caters to top-tier borrowers, you’ll be turning away a chunk of potential clients. Aim for a solution that accommodates a range of credit scores, offering multiple lenders or tiers.
Imagine you’re in a client’s living room. They’re excited, you’ve just shown them the online financing option, and then—BOOM—an unexpected error message. If the financing partner takes two days to respond, your sale might go ice-cold by the time the homeowner hears back.
That’s why a fast, responsive support team is crucial. Even a short delay can derail momentum. If your financing partner is on the ball, you’re more likely to lock in that sale while the homeowner’s excitement is still high.
We’re not here to bombard you with an over-the-top sales pitch, but we’d be remiss if we didn’t mention at least one point-of-sale financing option that checks off these boxes, FinMkt home improvement financing for contractors offers:
But hey, this is just one of several possibilities out there—use your best judgment and keep an open mind as you explore different platforms. The key is finding something that fits your business model and meets your customers’ needs without complicating your workflow.
“Would you prefer to pay over time?” is not pushy—it’s helpful. Insert that question early in the discussion.
Everyone in your organization should know at least the basics of how financing works.
Add a “Finance Your Remodel” call-to-action on your website, brochures, and email campaigns.
If a homeowner seems hesitant, a quick follow-up focusing on financing can keep the conversation alive.
Consumer financing is quickly becoming a must-have in the home improvement world. Homeowners want options, and if you’re the one to provide them, you’ll be the hero of the story. By removing the up-front lump sum hurdle, you can watch your project sizes grow, your close rate speed up, and your customer satisfaction skyrocket.
The real goal here is to empower you with the knowledge that offering financing options can revolutionize your contracting business. Pick a platform that aligns with your brand, supports a wide range of credit scores, and delivers strong support. Then train your team to utilize it like a well-oiled machine.
Now go forth and build—loan by loan, project by project—knowing you’ve got the power to make dreams happen, one financed renovation at a time.
