In this article
Step 1: Choose the kind of program
Three structures exist. A single-lender dealer program is simple but declines everyone outside one credit box and often charges a dealer fee. A multi-lender marketplace (AL Elite's model) routes each customer to lenders for their credit profile, including a second-look lender for declines, usually at no cost to join. In-house instalment plans turn you into a lender, with licensing and collection risk; avoid unless you know exactly why. Our contractor financing page compares them, and best contractor financing companies looks at named providers.
Step 2: Set it up properly
- Complete the program's onboarding: license, insurance, business details, bank account for funding.
- Get the financing link and QR code onto your quote template, invoices, website and truck wrap.
- Agree internally who presents financing and when: at the estimate, every time.
- Decide your policy on promotional (dealer-fee) offers: which jobs justify the fee, which don't.
Step 3: Present it the right way
The pitch is one sentence: "The full job is $14,200, or about $280 a month if you'd rather spread it out; want me to show you the options?" Then stop talking. Show the estimated payment from the program's calculator, hand the customer the link, and let them apply on their phone while you're still there. Most programs return a decision in minutes. Don't quote a specific APR unless it came from the lender in writing for that customer.
Step 4: Handle declines without losing the job
A decline from the first lender is not the end. Multi-lender programs route to a second-look lender automatically. If the customer is declined everywhere, options include a co-applicant, a smaller scope now and the rest later, or an insurance claim if the job is storm-related. What you must not do is tell any customer that approval is guaranteed, before or after.
Step 5: Get paid
The lender funds you per its process, typically at completion once the customer confirms the work is done. Know each lender's funding timing and certificate-of-completion requirements before the first job. Deposits and progress payments work differently by program; confirm what's allowed.
Compliance: the short list
- Never quote rates or terms you don't have in writing from the lender.
- Never promise approval.
- Never waive, absorb or rebate an insurance deductible. Illegal in many states.
- Disclose promotional terms exactly as the lender states them, including deferred interest.
- Don't collect credit information yourself. The customer applies with the lender; you never handle SSNs or account numbers.
- Follow TCPA rules if you text or call customers about financing: get consent in writing.
Programs enforce these because regulators do. AL Elite removes partners who break them.
What it does to your numbers
Contractors who offer financing consistently report higher close rates, larger average tickets (customers keep the upgrades in) and less discounting. The precise lift depends on your trade and market; roofing and HVAC, where jobs are urgent and expensive, see the biggest effect. Track it: close rate and average ticket, before and after, for three months.
Frequently asked questions
How much does it cost to offer financing to customers?
Marketplace programs like AL Elite's are free to join; lenders pay for introductions. Some lenders charge a dealer fee per funded job on promotional-rate offers. Standard-rate loans often carry no contractor fee.
Do I need a license to offer customer financing?
You don't lend; the lender does. You present the option and the customer applies with the lender. In-house instalment plans, where you carry the receivable, can require licensing. Check with your state and an attorney.
Can small contractors offer financing?
Yes, if licensed and insured. Some lenders have revenue or time-in-business minimums; a marketplace matches you with programs that fit.