Customer Financing Programs + Presentation

Why this matters

Customer financing transforms in-home sales conversion. A HVAC replacement quote that's "no" at cash becomes "yes" at financed. Tickets close 30 - 60% higher when financing is presented properly. The contractor pays a merchant fee (typically 2 - 8%) - significantly less than the lost-sale loss. Financing is now table stakes for residential service contractors selling tickets above . Operators not offering it are losing deals to those who do.

How customer financing works

Customer signs up for a financing program (often instantly on-site). The financing company pays the contractor in full + the customer pays the financing company over time.

Structure:

1. Customer applies (paper OR mobile)
2. Approval in 1 - 5 minutes (soft pull credit usually; some hard pull)
3. Customer signs documents
4. Contractor delivers work
5. Financing company pays contractor 1 - 5 business days
6. Customer pays financing company over 6 - 144 months at agreed rate

Contractor cost: typically 2 - 8% merchant fee deducted from payment. Some programs are merchant-free (subsidized by promotional APR).

Customer cost: depends on program:

• Same-as-cash (deferred interest): 6 - 24 months no interest if paid in full
• Reduced APR (special offer): 6.99 - 12.99% for promotional period
• Standard installment: 12 - 36 months at 8 - 18% APR
• Long-term: 60 - 144 months at 9 - 14% APR

The major financing programs

• Wisetack: HVAC/plumbing/electrical/roofing; instant text/QR approval; 3 - 60 months; 0% promo + standard APR; merchant fee 2.5 - 8%
• GreenSky (ContractorWise): residential service; hard pull; 6 - 144 months; 0% promo + standard
• Sunlight Financial: HVAC + electrical + solar; IRA-credit specialty
• Synchrony Home: HVAC + appliances; installment loans
• Service Finance Company: HVAC + plumbing + remodeling
• Enerbank (Regions Bank): home improvement; larger ticket; long-term

Most offer ONE primary + sometimes a SECOND backup.

How to present financing in-home

During discovery: don't mention financing yet. Customer focused on solving the problem.

During options presentation: present total price AND financing equivalent:

• (Pause; let customer absorb)
• "We can apply for that right now if you'd like; takes 2 - 3 minutes"

The math customers care about:

Customers respond to monthly payments more than total cost. feels expensive; feels manageable.

At the close:

• If customer hesitates on cash: "Did you want to look at the financing option?"
• Offer to apply on-site (most won't fill out forms later)
• Mobile applications make this 3 - 5 minutes via QR code OR text

Best practices for financing pitches

1. Present financing as additive, not "instead of"

Don't make it sound like you're pushing financing because the customer can't afford it. Frame: "Here's the cost + here's how we can make this work for you."

2. Don't hide the cash price

Customer needs to know both numbers. If you bury the cash price, customer feels manipulated.

3. Use promotional offers when available

"Same-as-cash for 18 months" closes more deals than "12.99% over 5 years."

4. Match financing to ticket size

5. Practice the presentation

Most reps stumble through financing because they only present it occasionally. Confidence comes from repetition. Roleplay with team.

The honest disclosure

Customer should understand:

• Cash price + financed price (with fees)
• APR (annualized)
• Total interest if not paid in promotional window
• Penalty for late payment
• Credit impact (soft vs hard pull)

The contractor + the financing company are partners on disclosure. Skipping disclosure = customer complaint + sometimes legal exposure.

Same-as-cash trap (the most-litigated)

"Same-as-cash for 18 months" works like this:

• If NOT paid in full by month 18: retroactive interest at 24.99% (typical) from day 1
• Customer who pays 17 of 18 payments + then misses pays full retroactive interest

Disclosure responsibility:

• Contractor must explain clearly
• Customer signs disclosure
• Customer's responsibility from there

Customers who don't understand this + get hit with retroactive interest = complaint + sometimes lawsuit. Educate clearly.

The merchant fee math

Contractor pays merchant fee (2 - 8% typical). On a job:

Is this worth it? Compare to alternative:

For higher-ticket jobs, financing nearly always pays for itself.

Multiple financing program strategy

Primary: 0% promotional (low-fee, customer-attractive) Secondary: Standard installment (higher fee, customer with marginal credit) Tertiary: Backup for declines

Most contractors offer 2 - 3 programs. Each has different approval criteria + different customer-fit.

Tracking financing impact

In CRM:

• Tag every transaction with financing vs cash payment
• Calculate close rate + average ticket per finance status
• ROI on merchant fees paid

Most contractors see:

• 30 - 60% higher close rate when financing offered
• 20 - 40% higher average ticket
• 5 - 15% of customers choose financing (often the best customers - highest-ticket)

Contractor responsibility + risk

• Contractor is responsible for accurate billing (charge what you quoted)
• Customer disputes go to financing company; you may face chargeback
• Customer satisfaction is your job (financing didn't cause unhappiness)
• Some financing programs reverse payment if you don't deliver promised work

Solar + EV charger specifics

Some financing programs are specialized for:

• Solar (Sunlight, Sunnova, GoodLeap)
• EV chargers
• Battery storage
• Heat pumps (IRA tax credit context)

These integrate with the customer's federal tax credit (30% for many). Contractor calculates financed amount accounting for the credit.

References

• Wisetack, GreenSky, Sunlight Financial websites
• Federal CFPB rules on consumer credit disclosure
• State usury laws (vary by state)
• Manuall internal: In-Home Selling + Close Technique, Pricing Strategy Fundamentals