Consumer Financing

The average system replacement costs $11,500–$14,100. Most homeowners can't write that check — 68% cannot pay cash for projects over $5,000 (Hearth). The barrier isn't the product. It's the payment.

Impact on Close Rates

Metric	Without financing	With financing	Source
Install close rate	25–38%	42–50%	ACHR News, SubcontractorHub
Average ticket (replacements)	$11,200	$14,800	Revenueify
Project spend per customer	Baseline	30–50% higher	PipelineOn
Financed share (lead with monthly payment)	21%	42%	Build-Folio

The framing effect Contractors who lead with "it's $189 a month" instead of "it's $12,400" close at roughly double the financing rate — same product, same customer, different first number they hear (Build-Folio 2026).

Provider Comparison

Provider	Dealer fees	Approval floor	Speed	Best use
GreenSky / SoFi	0–12.99%	~660 FICO	Under 5 min	High-credit markets
Service Finance	3–5%	~640 FICO	Minutes	Max traditional approval rate
Synchrony	0.99–15%	~620 FICO	Minutes	Repeat business (revolving credit)
Wells Fargo	3–7%	~660 FICO	Slower	Higher-ticket projects
Microf (rent-to-own)	N/A (lease)	No minimum	24–48 hrs	Challenged credit customers
FTL Finance (waterfall)	Varies by lender	~550 FICO	15 min	Broadest approval — cascades through multiple lenders
Hearth (subscription)	$0 (annual fee)	~550 FICO	Minutes	Zero dealer fee model ($1,799/year)

Sources: OneRate, Build-Folio, FTL Finance, Contractor ToolStack, Microf — all 2026

The waterfall approach

Instead of one lender (one approval threshold), platforms like FTL Finance and Hearth route a single application through multiple lenders automatically. If the prime lender declines, it cascades to near-prime, then subprime or lease-to-own. One application, one credit pull — customer gets the best available terms. FTL approves approximately 80% of applicants this way (FTL Finance 2026).

How to Present Financing

The monthly payment rule

Always present the monthly payment alongside — or before — the total price.

Instead of: "The new system is $12,400."
Say: "Your new system comes out to about $189 a month with approved credit. The total is $12,400."

Good/Better/Best with payments

Option	Equipment	Total	Monthly (60 mo)
Good	14 SEER2	$8,900	~$149/mo
Better	16 SEER2	$12,400	~$189/mo
Best	20 SEER2 + variable speed	$18,200	~$279/mo

When the monthly payment difference between Good and Better is $40/month, most customers choose Better. When they only see the lump sums ($8,900 vs $12,400), the $3,500 gap pushes them to Good.

What to say (and not say)

Do say	Don't say
"Most of our customers take advantage of monthly payments"	"Can you afford this?"
"Would you like to see what this looks like as a monthly payment?"	"Do you need financing?" (implies distress)
"With approved credit, this comes out to about $189 a month"	"We also offer financing..." (sounds like an afterthought)

Dealer Fee Economics

Dealer fees reduce margin on each financed job. The question: do the additional closed jobs more than cover the total fees?

Scenario	Quotes	Close rate	Sales	Revenue	Fees (8%)	Net
No financing	10	38%	3.8	$45,600	$0	$45,600
With financing	10	50%	5.0	$60,000	$4,800	$55,200
Difference	—	+12 pts	+1.2	+$14,400	−$4,800	+$9,600

Financing needs to convert just one additional sale per 10 quotes to be net positive — and the data shows it converts 1–2 additional per 10 (ACHR News, SubcontractorHub).

Same-as-Cash: What Your Customer Needs to Know

"Same as cash" is NOT the same as 0% interest With deferred interest ("same as cash"), interest accrues from day one but stays hidden. If the customer pays in full before the deadline, it's forgiven. If they're even $50 short, the full accumulated interest — often 22–29.99% APR — hits retroactively on the entire original balance. On a $10,000 system, that's $2,200–$3,000 in surprise interest.

A CFPB study found that for consumers with subprime credit scores, over 40% were unable to pay off the balance by the deferred interest deadline (NCLC).

What this means for the contractor

Disclose clearly. Explain that same-as-cash means deferred interest, not free money.
Don't advertise "0% financing" when you mean deferred interest. FTC and Florida's FDUTPA require qualifying terms.
Offer a true 0% APR option alongside same-as-cash when available — higher dealer fee but lower customer risk.
For customers who won't pay it off early, recommend the fixed-rate option. A 7.99% APR over 60 months is cheaper than deferred interest that triggers at 25%.

Common Mistakes

Not offering it on every job. Present financing on every replacement — you can't tell someone's bank balance from their house (PipelineOn).
Presenting it as a last resort. "Most of our customers use monthly payments" sounds normal. "We also offer financing if you need it" sounds like charity.
Only working with one lender. A single lender means a single approval threshold. A waterfall setup catches 15–30% more applicants (FTL Finance, FinMkt).
Not training the team on the presentation. If the tech is uncomfortable talking about money, the customer never hears about financing.
Ignoring the dealer fee in pricing. If 40–60% of replacements are financed at 8%, that's 3.2–4.8% of replacement revenue in fees. Build it in or accept the compression.

Sources (10)

ACHR News — "Survey Reveals Strategies to Boost HVAC Close Rates" (2026)
Hearth — consumer financing survey
FTL Finance — multi-lender solution, peak season report (2026)
Build-Folio — HVAC contractor financing guide (2026)
OneRate — contractor financing comparison (2026)
Contractor ToolStack — GreenSky, Hearth reviews (2026)
Microf — lease-to-own program (2026)
NCLC — "Deceptive Bargain: Deferred Interest Credit Cards" (2023)
SubcontractorHub — contractor financing options (2026)
PipelineOn — effective contractor financing (2026)