Should you offer customer financing at all?

Customer financing closes deals, especially when a $12k system replacement competes with a used car for a family’s budget. Third-party lenders offer promotional plans, but they aren’t charity: they charge you a “dealer fee” of 5% to over 20% of the job cost. You recoup that by increasing your price or margin.

There’s no shame in offering financing; just remember you’re becoming a bank. If your clientele is mostly prime credit and you can stomach the dealer fee, offering financing can double your close rate. If your market is price-sensitive, consider partnering with lenders that approve a wider credit band, even if the rates are higher.

Always offer multiple options: same-as-cash for those who pay quickly, low-payment longer terms for budget buyers and a cash discount for those paying upfront. The goal is to remove cost objections without giving away the store.