Home Improvement Contractor Financing

Companies That Finance Customers and Pay Subcontractors Directly

Many subcontractors and contractors in home improvement trades (roofing, remodeling, siding, flooring, etc.) partner with specialized finance companies. These lenders approve loans or lines of credit for the homeowner/customer. Once the work is completed or reaches agreed milestones, the lender pays the contractor/subcontractor directly (typically via ACH within 1-3 business days). The customer then repays the lender over time according to the loan terms.

This model is often called contractor financing, point-of-sale financing, or indirect lending. It lets contractors close more jobs by offering customers affordable monthly payments while ensuring the contractor gets paid promptly, without managing collections or taking repayment risk.

How These Programs Typically Work

• Contractor enrolls as a merchant/partner with the finance company (usually free or low cost).

• During the sales process, offer financing options to the customer via app, tablet, or link.

• Customer applies (soft or hard credit pull depending on program).

• Upon approval and work completion (or staged draws), submit verification.

• Lender pays the contractor directly.

• Customer repays the lender monthly.

Finance Companies & Programs

Below is a curated list of reputable companies that provide this type of financing. Details are based on publicly available information as of July 2026 and may change. Always verify directly with the company.

Additional Notes

• Enrollment: Most require contractors to apply and be approved as a partner (licensing, insurance, and proper business verification usually required).
• Promotional Rates: Many offer 0% APR intro periods (e.g., 12-24 months) which help close larger jobs.
• Funding Speed: Typically 1-3 business days after work verification.
• Risk to Contractor: Generally low; the lender assumes repayment risk.
• Best Practice: Compare multiple programs for approval rates, fees (if any), and customer experience. Some have subscription fees; others are free per project.

Specific Benefits of Contractor Financing for Home Improvement Businesses

Close More Jobs, Faster: Offering an affordable monthly payment at the point of sale removes the biggest objection homeowners have: sticker shock on a large project.
Get Paid Without Chasing Payments: Once work is verified, the lender pays the contractor directly, usually within 1-3 business days, and absorbs the repayment risk.
Bigger Average Job Size: Financing often lets customers approve larger projects or add-ons within a monthly payment they budgeted for.
Options for Contractors at Any Stage: Newer businesses aren’t shut out; programs like Hearth (no minimum time in business) and Sunlight Financial (flexible eligibility) work without 2+ years of history, while established contractors can access higher-volume programs like GreenSky or Regions.

How to Choose the Right Financing Partner

Based on Time in Business: New or under 6 months: Hearth or Sunlight Financial. 6 months-2 years: Service Finance Company (SFC). 2+ years: GreenSky, Acorn Finance, LendKey, Momnt, HFS Financial. 5+ years (or 3+ years with a Regions relationship): Regions Home Improvement Financing.

Based on Trade Focus: Roofing & exterior work: Service Finance Company is particularly strong in this space. General remodeling, flooring, siding: Most programs on this list support a broad range of home improvement trades.

Based on Structure Preference: Single direct lender: GreenSky, Regions, or Service Finance Company. Marketplace comparing multiple lenders: Hearth or Acorn Finance.

Frequently Asked Questions

Do I need to be an LLC or corporation to enroll in contractor financing programs?
Most programs require a registered, licensed, and insured business, but entity-type requirements vary by lender. Check each program’s merchant requirements directly.

How fast do contractors get paid after work is completed?
Most programs pay out via ACH within 1-3 business days after the completed work (or a milestone draw) is verified.

Does contractor financing put the contractor at financial risk if the customer defaults?
Generally no. The lender approves and funds the customer, and repayment risk sits with the lender, not the contractor.

Can new contractors with no business history use these programs?
Yes, some programs — including Hearth and Sunlight Financial — do not require a minimum time in business. Others, like GreenSky or Regions, require 2-5 years of operating history.

Do contractors pay to offer financing?
It varies by lender. Some programs are free per project, while others charge a subscription or platform fee.

What credit check does the customer go through?
This depends on the program — some use a soft credit pull for pre-qualification and a hard pull only upon final approval.

Can a contractor use more than one financing company at the same time?
Yes, many contractors enroll in multiple programs to give customers more options and improve overall approval rates.

What is a “staged draw” in contractor financing?
It’s a funding structure in which the lender releases payments in installments as project milestones are completed.

Do these programs work for all home improvement trades?
Most programs support a broad range of trades, though some, like Service Finance Company, have particular strength in specific categories such as roofing and exterior work.

How do promotional 0% APR offers work?
Lenders offer an introductory period, commonly 12-24 months, during which customers pay no interest if they pay the balance within that window.

Conclusion

Contractor financing has become a standard tool for home improvement businesses looking to close more jobs, get paid faster, and remove pricing as a barrier. The right program depends on your time in business, trade focus, and whether you prefer a single direct lender or a marketplace that shops multiple lenders at once. Comparing a few options — and confirming current terms directly with each company — is the best way to find the right fit before enrolling.