Financing Options That Close More Deals: Offer Payment Plans

The Cash Flow Barrier

Common scenario:

Homeowner needs new roof. Estimate: $14,500. Response: "We need to think about it."

Translation: "We don't have $14,500 sitting around."

The statistics:

• 43% of Americans can't cover a $1,000 emergency expense (Federal Reserve)
• Average roof cost: $8,000-18,000
• Most homeowners need financing

If you don't offer it, your competitor will.

The Close Rate Impact

Dallas roofing contractor tracked 6 months:

Before offering financing:

• 89 estimates sent
• 23 jobs closed (26% close rate)
• Average job: $12,800
• Revenue: $294,400
• Common objection: "Too expensive right now"

After offering financing:

• 94 estimates sent
• 38 jobs closed (40% close rate)
• Average job: $13,200 (higher acceptance of premium options)
• Revenue: $501,600
• Common response: "$189/month? We can do that!"

Same market. Same marketing. 70% more revenue.

Financing Options Explained

Option 1: In-house payment plans

You act as the lender.

Example:

• $12,000 job
• $3,000 down
• $1,000/month for 9 months
• No interest (or simple interest)

Pros:

• Easy to offer
• You control terms
• No third-party fees
• Builds customer relationships

Cons:

• Risk of non-payment
• Ties up your cash
• Requires collection process
• May need legal agreements

Best for: Jobs under $8,000 with trustworthy customers

Option 2: Third-party financing companies

Partner with lenders who provide loans to your customers.

Popular options:

• GreenSky (home improvement loans)
• Synchrony (consumer financing)
• Hearth (contractor-focused)
• Service Finance Company
• FTL Finance

How it works:

1. Customer applies during estimate
2. Approval in 5-15 minutes
3. Customer accepts loan terms
4. You get paid in 1-3 days
5. Customer pays lender over time

Typical terms:

• 3.99% - 9.99% APR (for customer)
• 12, 24, 36, or 60-month terms
• You pay 3-8% origination fee

Pros:

• You get paid immediately
• No collection headaches
• Professional underwriting
• Higher approval rates

Cons:

• You pay origination fee
• Not all customers qualify
• More paperwork

Best for: Most situations, especially jobs over $8,000

Option 3: Credit cards

Simple but effective.

Accept all major cards:

• Visa, Mastercard, Discover, Amex
• Processing fee: 2.5-3.5%

Some customers will:

• Use rewards cards (points/cash back)
• Carry balance at their own rates
• Transfer to 0% APR cards

Option 4: Promotional financing

"12 months same as cash"

Customer pays no interest if paid within 12 months.

How it works:

• Financed through third party
• Customer makes monthly payments
• If paid off by month 12: $0 interest
• If not paid off: Deferred interest charged (typically 18-25%)

You pay: 8-12% fee

Why customers love it:

Seems like a great deal (and is, if they pay on time).

Approval rates: 70-85%

The Payment Presentation

Old way:

"Your new roof will cost $14,500."

New way:

"Your new roof is $14,500, which comes out to just $189 per month with our financing. Most customers choose the 84-month option."

Anchoring to monthly payment makes it feel affordable.

Sample presentation:

"Mr. Johnson, here are your payment options:

Option 1: Pay in full - $14,500 (save 3%: $14,065)

Option 2: 12 months same-as-cash - $1,208/month, $0 interest if paid in 12 months

Option 3: 60-month financing - $281/month at 6.99% APR

Option 4: 84-month financing - $213/month at 7.99% APR

Which works best for your budget?"

Most choose option 3 or 4.

The Application Process

Make it easy:

Old way:

"You'll need to apply for financing. Here's a website..."

Customer never applies.

New way:

"I can help you apply right now. Takes 3 minutes. Do you have your phone?"

Walk them through it:

1. Open financing partner website
2. Enter basic info (name, SSN, income, address)
3. Submit application
4. Get instant decision
5. Sign loan agreement digitally
6. Done

Close rate on estimate+financing presented together: 65%

Close rate when customer has to apply later: 22%

Handling Credit Denials

Not everyone will qualify. Have backup options.

If denied for prime financing:

Option A: Try alternative lender

Some specialize in subprime (higher interest but higher approval rate).

Option B: Suggest co-signer

Family member with better credit.

Option C: Offer in-house plan

Larger down payment + monthly payments.

Option D: Suggest delaying + building credit

"Let's revisit in 3-6 months after you improve your credit score."

Option E: Cash deal with discount

"If you can find the cash, I'll take 5% off."

Never:

• Make customer feel bad about denial
• Push too hard on alternatives
• Suggest anything predatory

The Math on Origination Fees

Question: "Why would I pay 6% to a financing company?"

Answer: Because you close more deals.

Scenario without financing:

• 20 estimates/month
• 26% close rate = 5.2 jobs
• Average: $12,000
• Revenue: $62,400/month
• Profit (30%): $18,720

Scenario with financing (you pay 6% fee):

• 20 estimates/month
• 40% close rate = 8 jobs
• Average: $12,000
• Revenue: $96,000/month
• Minus 6% financing fees: -$5,760
• Net revenue: $90,240
• Profit (30%): $27,072

Extra profit: $8,352/month = $100,224/year

Worth it? Absolutely.

Insurance Claim + Financing Combo

Powerful combination:

Insurance covers: $12,000

Customer deductible: $2,500

Instead of customer paying $2,500 upfront:

"We can finance your deductible. Just $89/month for 36 months."

Removes the last barrier to saying yes.

Legal Compliance

Financing is regulated. Follow the rules:

Truth in Lending Act requirements:

• Disclose APR clearly
• Provide payment schedules
• No hidden fees
• Written loan agreements

State-specific rules:

• Some states cap interest rates
• Licensing may be required for in-house financing
• Contract language requirements

Work with financing partners who handle compliance for you.

Marketing Your Financing

Advertise it everywhere:

Website:

"Financing Available | As Low As $99/Month"

Google Ads:

"New Roof from $149/Month - Instant Approval"

Yard signs:

"Ask About Our Financing Options"

Estimates:

Monthly payment prominently displayed

Customer testimonials:

"The financing made it possible for us to get our roof done now instead of waiting years."

Psychology of Payment Plans

$14,500 feels impossible.

$189/month feels manageable.

Same total cost, completely different emotional response.

Framing matters:

• "Less than your car payment"
• "About the cost of cable and internet"
• "Just $6.30 per day"

Make the monthly payment relatable.

Upselling With Financing

Financing enables upgrades.

Without financing:

"$14,500 for architectural shingles? Too expensive. We'll take the basic 3-tab for $11,200."

With financing:

"Architectural is $14,500 ($189/month) vs. 3-tab at $11,200 ($146/month). Only $43/month more for a much better roof that lasts longer. Makes sense, right?"

Result: Higher average job value + better quality installations.

Competitors Are Doing This

If you're not offering financing, you're losing deals to contractors who do.

Customer shopping pattern:

1. Gets 3 estimates
2. Contractor A: $12,800, cash only
3. Contractor B: $13,100, cash only
4. Contractor C: $12,900, $168/month available

Who gets the job? Contractor C, even though they're in the middle on price.

Setting Up Financing

Step 1: Choose partner(s)

Research 3-5 financing companies:

• Compare approval rates
• Review origination fees
• Check customer service
• Read contractor reviews

Step 2: Apply as contractor

• Complete application
• Provide business documentation
• Sign agreements
• Get approved (usually 3-7 days)

Step 3: Get trained

• Learn how to present financing
• Practice application process
• Understand terms and rates

Step 4: Integrate into sales process

• Add to estimate templates
• Train sales team
• Update website
• Create marketing materials

Step 5: Launch

• Start offering to every customer
• Track results
• Refine presentation

Total setup time: 2-3 weeks

Customer Success Stories

"We were going to wait 2 years to save up. Financing let us do it now before more damage occurred. Our monthly payment is $143 and totally manageable." - Sarah M.

"I'm retired on fixed income. I couldn't have afforded $9,500 upfront. The 60-month plan worked perfectly for my budget." - Robert T.

"The 12-months same-as-cash was perfect. We paid it off in 11 months and didn't pay a penny in interest." - Jennifer L.

Common Objections & Responses

Objection: "I don't want debt"

Response: "I understand. This is a necessary home repair, not discretionary spending. Plus, financing prevents further damage that would cost even more later."

Objection: "What's the interest rate?"

Response: "6.99% for qualified buyers, which is competitive with most home improvement loans. And think about what you'd pay in damage if you delay this repair."

Objection: "I'll just save up"

Response: "That's responsible thinking. Just keep in mind that delaying could lead to interior damage, which would cost thousands more. Many customers find the peace of mind worth the small interest cost."

The Technology Integration

Modern CRMs integrate financing:

• Calculate monthly payments automatically
• Generate financing proposals
• Link to application portals
• Track approved vs. denied
• Monitor origination fees

CompanySync integrates with major financing partners. Learn more

Ready to offer financing? Call +1-(216)-999-5197 to discuss which financing option is best for your business.