Hearth vs Service Finance Company: Which Contractor Financing Program Saves You More?

If you have been researching contractor financing programs, you have probably run across both Hearth and Service Finance Company. They both let contractors offer financing to homeowners. They both fund you quickly after a job is complete. But the way they charge you is completely different, and that difference determines which one actually saves you money at your volume.

Hearth vs Service Finance Company comes down to one core question: do you want to pay a flat annual fee or a per-job dealer fee? Here is the full breakdown so you can run the math on your own numbers.

The Core Difference: Subscription vs Per-Transaction

Hearth charges a flat annual subscription. As of 2026, that runs around $1,499 per year for the Starter plan, $1,799 for the Pro plan (the most popular tier), and $4,999 for Enterprise. You pay once a year and every funded job after that has zero dealer fees. The $1,799 annual cost breaks down to roughly $150 per month, regardless of how many jobs you finance.

Service Finance Company uses a dealer fee model. Enrollment is free. There are no monthly minimums. But when a homeowner’s loan funds, Service Finance takes a percentage of the loan amount as a dealer fee. That fee varies by product and loan structure, with ranges from 0% on certain products up to around 10% on promotional low-rate or deferred-interest products. The typical range contractors report in the HVAC and roofing space is 3% to 8% depending on the offer.

Neither model is inherently better. The right answer depends almost entirely on how much financing volume you run per year.

Side-by-Side Comparison

The Break-Even Math

This is the only number that actually matters when choosing between the two. At what annual financing volume does Hearth’s flat fee become cheaper than Service Finance’s per-job dealer fees?

If you use Service Finance with an average dealer fee of 5% (a reasonable midpoint for a mix of standard and promotional products), and you pay $1,799 for Hearth’s Pro plan, the break-even point looks like this:

• $1,799 divided by 5% = $35,980 in financed volume
• At $36,000 in annual financed projects, both platforms cost roughly the same
• Every dollar above $36,000 means Hearth is saving you money

If your average dealer fee with Service Finance is closer to 8% (because you use a lot of promotional 0% APR products to close jobs), the break-even drops to about $22,500.

Most contractors doing any real volume in HVAC or remodeling are well above these thresholds. A single $15,000 HVAC replacement financed at 8% costs $1,200 in dealer fees alone. Two of those jobs and you have already paid for Hearth’s Pro annual subscription.

Who Service Finance Company Is Best For

Service Finance is a strong fit in specific situations. If you are just starting to offer financing and are not sure how much volume you will run, the zero-enrollment cost removes the upfront risk. You only pay when jobs actually fund. For a contractor doing $15,000 to $20,000 in financed volume per year, the dealer fees will be lower than Hearth’s annual subscription.

Service Finance is also worth considering if you work heavily in HVAC, roofing, or windows, where it has deep lender relationships and manufacturer tie-ins. Its FHA Title I approval also opens financing access to homeowners in certain government-backed loan programs that Hearth does not participate in.

If your average dealer fee stays low (under 3%) because you mostly use standard rate products rather than promotional ones, the per-job model can remain cost-effective at moderate volume. The key is knowing your actual blended fee rate across all the products you use.

Who Hearth Is Best For

Hearth wins on volume. If you are financing $40,000 or more per year in projects, the flat annual fee almost always comes out ahead. The break-even threshold is low enough that most mid-size contractors clear it within their first two or three financed jobs of the year.

The 550 FICO minimum is also a real advantage. Service Finance typically requires 620 or higher depending on the product, which means some homeowners who would qualify through Hearth’s lender network will get turned down through Service Finance. In the real world, that translates to closed deals you would have otherwise lost.

Hearth’s multi-lender network (18+ partners) also means one pre-qual check shops multiple offers simultaneously, which increases overall approval rates. Service Finance is a single lender, so if that lender declines the homeowner, there is no fallback within the same platform.

Finally, Hearth bundles contractor business tools (estimates, contracts, payment collection) into the subscription. For contractors who want a financing tool and a lightweight business management platform in one, that bundle has real value.

Can You Run Both?

Yes. Some contractors use Service Finance for HVAC-specific manufacturer programs or FHA Title I situations and keep Hearth as their primary multi-lender platform for everything else. There is no exclusivity requirement on either side. The practical question is whether managing two platforms and two sets of homeowner paperwork is worth the added complexity at your volume.

Bottom Line

If you are brand new to contractor financing or running very low annual volume (under $25,000 per year financed), Service Finance Company’s free enrollment removes the upfront risk. If you are doing consistent volume above $36,000 per year in financed projects, Hearth’s flat-fee model saves you money on every job above that break-even threshold. The FICO floor at 550 and the 18-lender network also give Hearth a meaningful edge on approval rates, which matters when every declined homeowner is a lost job.