If you have never offered financing before and you are not sure where to start, this guide is written specifically for you. Not for contractors who are switching platforms or optimizing dealer fees, but for the contractor who has never done it and is wondering whether it is worth the effort. The short answer is yes, it is worth it, and it is simpler to set up than most contractors expect.
What Contractor Financing Actually Is
The core concept is simple: the homeowner applies for a loan through a lender in the platform’s network, the lender approves the loan, and you get paid in full within 1-3 business days. The homeowner makes monthly payments to the lender, not to you. You are out of the transaction once you get paid.
You are not lending your own money. You are not taking on credit risk. You are not waiting on the homeowner to pay you. Your cash flow works the same as cash or check, except the money comes from the lender instead of directly from the customer.
What you give up is a small percentage of the job amount in “dealer fees,” depending on which platform you use and which loan product the homeowner selects. This is the cost of the service to you. The tradeoff is that you close jobs you would otherwise lose, and your average ticket often goes up because homeowners stop anchoring to what they have in the bank.
The Three Fee Models
Per-job dealer fees. You pay a percentage of the financed amount for each individual job. The fee typically ranges from 3.9% to 12% depending on the platform, the loan product, and the homeowner’s credit tier. This is the most common model for platforms like Wisetack and GreenSky. It has no upfront cost and no commitment, which makes it the right starting point for lower-volume shops.
Annual subscription. You pay a flat annual fee regardless of how many jobs you finance. Hearth uses this model, charging around $1,799 per year as of 2026. Once you have paid the annual fee, there is no per-job charge. This model becomes significantly cheaper than per-job fees once you cross roughly $36,000-$46,000 in financed volume per year.
Membership or dealer program. Some manufacturer-affiliated programs (like EnerBank through Lennox or Carrier dealers) structure costs into manufacturer program fees rather than direct per-job charges. The costs are still there, they are just built into the dealer agreement differently.
The Top Platforms and One-Line Descriptions
- Hearth: Flat annual fee, 18-plus lenders, best for contractors financing more than $46k per year. See details here.
- Wisetack: Per-job fee starting at 3.9%, no commitment, best entry point for new or lower-volume shops.
- GreenSky: Most recognized brand, high dealer fees on promotional products, widely used in HVAC and home improvement.
- Service Finance Company: HVAC and home improvement specialty lender, 0% promotional products available.
- EnerBank / Regions: Powers most manufacturer seasonal 0% programs, best for dealers with manufacturer relationships.
What You Need to Get Started
Most platforms require roughly the same basic setup. There is typically no credit check on your business for entry-level platforms like Wisetack or Hearth. What you do need:
- An active business bank account where deposits will land
- A valid business license or contractor license for your state and trade
- Basic business information: legal entity name, EIN, years in operation
- A verifiable business address and phone number
The application process takes 20-30 minutes and approval typically comes back within 1-3 business days. Some platforms like Hearth and Wisetack approve within hours.
How to Introduce Financing in Your First Estimate
The single most effective way to introduce financing is early, before you have quoted a price. The question that works best is some version of: “Do you have a preference on how you’d like to handle payment for the project, or would it be helpful to look at some monthly payment options?”
This does two things. It normalizes financing as a normal, expected option rather than something you offer to people who “can’t afford it.” And it gives the homeowner an opening to tell you they are interested in monthly payments before they have anchored to the full project price.
Once they say they are open to payment options, you can present the financing as: “We work with a lender network that lets homeowners spread the cost over 12-60 months. It takes about 2 minutes to check what you qualify for and it does not affect your credit score to check.”
That last sentence, the soft pull no-impact language, removes the biggest hesitation most homeowners have.
What Approval Rate to Expect
Approval rates vary by platform, market, and the credit profile of your customer base. Industry averages for contractor financing platforms generally run 60-75% of applicants getting some offer. On Wisetack and Hearth specifically, contractors commonly report approval rates in the 65-70% range across their customer base.
The customers who are declined are typically below the 540-550 FICO floor, have very high existing debt, or are applying for amounts that exceed what lenders will support at their income level.
What to Do When a Customer Is Declined
A decline on one platform is not necessarily a decline everywhere. The two most practical steps:
First, try a second platform. Hearth and Wisetack draw from different lender networks. A customer declined by Wisetack may get approved through Hearth, and vice versa. Having both active before you need them is the right approach.
Second, ask if a smaller amount would work. A customer declined for $18,000 might get approved for $10,000, which could cover the highest-priority scope of work now and the rest later.
Is It Worth It If You Only Finance 3-5 Jobs a Year
At 3-5 financed jobs per year, the answer depends on your ticket size and which fee model you use. On Wisetack with a 3.9% fee, 5 jobs at $10,000 each costs you about $195 per job in fees, or $975 total for the year. If one of those 5 jobs would have been lost without financing, and that job had a $10,000 ticket, you are ahead by $9,025 even after fees.
The question is not whether the fee is worth it in a vacuum. The question is how many jobs you would lose without offering financing, and what those jobs are worth. For most contractors, even one or two additional closes per year more than pays for the cost of the platform.
The 3 Most Common Mistakes First-Time Contractors Make
Waiting until the end of the estimate to mention financing. By that point, the homeowner has anchored to the full price and mentally started problem-solving around it. Introduce the option early, before the number lands.
Offering it only to customers who seem like they need it. This is the fastest way to make financing feel like a last resort rather than a smart payment option. Present it to every customer as a normal choice, the same way a car dealership mentions lease vs. buy on every deal.
Signing up and then never actually bringing it up. The number one reason financing does not work for a contractor is that they never actually present it. The platform sitting in your email confirmation is not doing anything. You have to bring it up in the sales conversation.
For more detail on how to use financing effectively in your sales process, check out our guides on how to pitch financing to homeowners, handling homeowner financing objections, and the true cost of not offering financing.
Ready to See If Hearth Makes Sense for Your Business?
Hearth gives contractors access to 18 plus lenders at a flat annual rate with no per-job dealer fees. If you finance more than $36,000 in projects per year, the math almost always works in your favor.