Step-by-Step Guide
How Contractors Can Offer Financing
Adding financing options to your contracting business is easier than you think. Most contractors get set up in less than 24 hours and start closing bigger deals immediately. Here’s exactly how to do it.
Setup Checklist
- Time to setup: 30-60 minutes
- Approval time: 1-3 business days
- Cost to join: Free (most platforms)
- Equipment needed: Smartphone or tablet
Quick Answer
How to offer financing as a contractor: partner with platforms like Wisetack, GreenSky, or BuildFolio. Integrate into sales process. Train team on presenting payment options. Increases close rates 30-50%.
What You Need to Get Started
Before signing up with a financing platform, gather these essentials. Having everything ready makes the application process quick and smooth:
Business License
Your valid contractor’s license for your state. Most platforms require you to be licensed in the states where you operate.
Tax ID / EIN
Your Employer Identification Number or SSN if you’re a sole proprietor. This is used for tax reporting purposes.
Bank Account Info
Your business bank account routing and account numbers. This is where financing companies will deposit your payments.
Proof of Insurance
General liability insurance certificate. Most platforms require at least $1M in coverage.
Business History
Most platforms want 1-2 years of business history. Some accept newer contractors with strong credit.
Smartphone or Tablet
You’ll use a mobile app to submit customer applications. No special hardware or POS equipment required.
New Contractor?
Some platforms like Wisetack have lighter requirements and accept contractors with less than 2 years of history. Start there if you’re newer to the business.
Ready to start offering financing?
Get set up in as little as 24 hours. No monthly fees, no minimums.
Apply Now – It’s FreeStep-by-Step Setup Process
Here’s the exact process to start offering financing to your customers. Most contractors complete this in under an hour:
Choose Your Financing Platform
Research options like GreenSky, Wisetack, Service Finance, or BuildFolio. Consider loan limits, fees, and approval rates. Many contractors sign up with 2-3 platforms for better coverage.
Complete the Dealer Application
Fill out the online merchant/dealer application. You’ll enter your business info, license details, bank account, and insurance information. Takes about 15-20 minutes.
Submit Required Documents
Upload your contractor’s license, proof of insurance, and any other requested documents. Most platforms let you take photos with your phone.
Wait for Approval
Most applications are approved within 1-3 business days. Some platforms offer same-day approval for established contractors. You’ll get an email when you’re approved.
Download the App & Complete Training
Install the financing app on your phone or tablet. Watch the training videos (usually 15-30 minutes) to learn how to submit applications and present financing to customers.
Start Offering Financing
You’re ready to go! Start mentioning financing on your next quote. When a customer is interested, use the app to submit their application for instant approval.
Pro Tip: Practice First
Before your first customer, do a test application with a family member or employee. This helps you get comfortable with the app and process before using it in a sales situation.
Choosing the Right Financing Platform
Not all financing platforms are created equal. Here’s how the major options compare:
| Platform | Max Loan | Setup Time | Best For |
|---|---|---|---|
| GreenSky | $65,000 | 2-3 days | Large remodels, established contractors |
| Wisetack | $25,000 | Same day | Quick setup, smaller projects |
| Service Finance | $100,000 | 2-3 days | HVAC, roofing, specialty trades |
| BuildFolio | $50,000 | 1-2 days | General contractors, remodelers |
| Synchrony | $75,000 | 3-5 days | Retail partnerships, brand names |
Key Factors to Consider
- Loan limits: Make sure the platform covers your typical project sizes
- Approval rates: Higher approval rates mean more customers qualify (look for 60%+)
- Dealer fees: Lower fees mean more profit, but often trade off with approval rates
- Customer experience: A smooth app experience reflects well on your business
- Integration: Check if it works with your CRM or job management software
Use Multiple Platforms
Smart contractors sign up with 2-3 platforms. If a customer doesn’t qualify on one, you can try another. This maximizes your approval rates and gives customers more options.
Get Set Up in 24 Hours
Join thousands of contractors who’ve added financing to their business.
Start Free SetupHow to Use Financing on Every Job
Once you’re set up, here’s how to effectively use financing to close more deals:
Presenting the Financing Option
The key is making financing feel natural, not pushy. Here are proven approaches:
Lead with Monthly Payment
“This kitchen remodel would be about $350 per month with financing.” Frame the cost as a manageable monthly expense rather than a large lump sum.
Mention It Early
Don’t wait until the customer balks at the price. Mention financing options when you first discuss the project scope and budget.
Compare to Other Expenses
“For about what you spend on cable TV each month, you could have a brand new roof.” Relatable comparisons make payments feel manageable.
Offer the Check
“Want to see what you’d qualify for? Takes just 2 minutes and doesn’t affect your credit score.” Make it easy to say yes to checking rates.
The Application Process
When a customer wants to explore financing:
- Open the financing app on your phone or tablet
- Enter the project amount and customer’s basic info
- Hand the device to the customer to enter their SSN and complete the application
- Get an instant decision (usually under 2 minutes)
- Review approved terms and monthly payment options together
- Customer signs the agreement electronically
Soft Credit Check First
Most platforms do a soft credit pull initially, which doesn’t affect the customer’s credit score. The hard pull only happens if they accept the loan terms. This makes customers more comfortable checking their rates.
After Approval
Once the customer is approved and signs the financing agreement:
- Schedule and complete the work as normal
- When finished, mark the job complete in the financing app
- Customer confirms completion (via the app or email)
- Funds are deposited to your bank within 1-3 business days
- The financing company handles all billing and collections from there
Frequently Asked Questions
How can a contractor offer financing to customers?
Contractors partner with third-party financing companies like GreenSky, Wisetack, or BuildFolio. You apply as a dealer/merchant (free), get approved in 1-3 days, then use their app to submit customer applications. The financing company handles underwriting, lending, and collections while you get paid directly.
Is it hard for contractors to set up financing?
No, it’s straightforward. Most contractors complete setup in under an hour. You’ll need basic business documents (license, tax ID, bank info), fill out an online application, and complete a brief training. Most platforms approve contractors within 1-3 business days.
Do contractors need a special license to offer financing?
No special license is needed. When you partner with a financing company, they’re the lender—not you. You’re simply facilitating access to their lending products. Your regular contractor’s license is all that’s required.
What documents do contractors need to offer financing?
Typically you need: valid contractor’s license, EIN or tax ID number, business bank account information, proof of insurance, and 1-2 years of business history. Some platforms have lighter requirements for newer contractors.
How long does it take to start offering financing?
Most contractors can start offering financing within 1-3 business days. Some platforms like Wisetack offer same-day approval. The application itself takes about 15-30 minutes, plus a short training video.
Is there a cost for contractors to offer financing?
Most platforms are free to join with no monthly fees. You pay a dealer fee (0-15%) only when a customer uses financing. The fee depends on the loan terms—standard rate loans have lower fees, while 0% APR promotions cost more.
What if my customer doesn’t get approved?
If a customer isn’t approved on one platform, try another. Different platforms have different approval criteria. Having 2-3 financing options increases your overall approval rate. You can also discuss a smaller project scope that might qualify.
Can I offer financing for any type of project?
Most home improvement projects qualify: kitchens, bathrooms, roofing, HVAC, windows, flooring, siding, decks, and general remodeling. Some platforms have minimum project amounts ($1,000-$2,500) and maximum limits ($25,000-$100,000 depending on the platform).
Start Offering Financing Today
Setup takes less than an hour. No monthly fees. Start closing bigger deals this week.
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