How to Offer Financing Services

1. Decide on the Type of Financing

You can offer financing in two main ways:

• Through a third party (banks, credit unions, or companies specializing in construction financing).
• In-house financing (where your company provides payment plans to clients, though this can be risky if not managed properly).

2. Partner with a Financing Company

Some of the most common options in the U.S. include:

• Lendistry is a financial institution that provides loans and financing to small businesses and contractors in the U.S. It operates under the California Financing Law (CFL) and facilitates access to capital for business growth.
• GreenSky (popular for home renovations and improvements).
• Synchrony Bank (offers credit for construction projects).
• Hearth Financing (specialized in contractors and remodeling).
• Enhancify (allows you to offer online financing to clients).

These companies will evaluate the client’s credit, and if approved, you receive the full payment while the client pays in installments.

3. Obtain Licenses or Certifications (if necessary)

• Some states require contractors to obtain a special license to offer financing.
• Check with the California Contractors State License Board (CSLB) to verify requirements.

4. Set Up Payments and Terms

If you decide to offer in-house financing, establish:

• Interest rate (if applicable).
• Payment terms (monthly payments over 6, 12, or 24 months, etc.).
• Down payment requirements.
• Policies to prevent defaults (e.g., late payment penalties).

5. Promote Your Financing Options

Once your financing is available:

• Mention it on your website and social media.
• Include it in your estimates as a payment option.
• Train your team to explain the financing options to clients.