Effective October 1, 2021, EnerBank USA ("EnerBank") merged with and into Regions Bank. Learn more here

Contractor Financing: What Is It & How to Offer It

When hiring a contractor for their home renovations, not every homeowner has a good idea of how much quality services and materials will cost. This means they may back out after the initial bid, choose lower-quality materials, or reduce the size of the project to save money. Contractor financing for customers will put their dream projects within reach, without compromises — and will empower you to grow your business and increase sales of larger jobs.

contractor financing research stats

According to market research, 50% of projects over $5,000 are financed in some way*. So, if you aren’t offering payment options to your customers, you’re leaving cash on the table — cash that your competitors will happily pick up.

Stay ahead of the competition: to attract new customers and strengthen your appeal in the marketplace, consider customer financing for contractors.

*Based on the Bain Report commissioned by EnerBank USA, 2017

What Is Contractor Financing?

Contractor financing provides an easy way for your customers to pay for their home improvement projects — and for you to get paid quickly and on time. By working with a trusted lender like Regions | EnerBank, contractor financing programs allow you to offer payment and financing options directly to your customers. We will work with your business and allow you to provide the funding your customers need.

Many customers don’t want to spend all their cash to make repairs and renovations in their homes. So, they turn to a variety of financing options that allow them to pay over time, including:

  • Personal loans from traditional banks, credit unions, and online lenders.
  • Setting a savings goal and setting aside cash over several years. Or they may complete several smaller projects as funds become available, sometimes choosing lower-quality service and materials to make the budget stretch.
  • Receiving financing from a large home improvement corporation, such as Lowe’s or Home Depot.
  • Obtaining a financing plan directly from a contractor they hire to do the work. These plans typically include same-as-cash loans or low monthly payment loans that are paid back over time.

For homeowners, getting financing directly from a contractor is a helpful and straightforward route. They know they’re getting trustworthy financing that works directly with their contractor and they’ll be provided with the options they need to make an informed decision. Homeowners also appreciate the ease and convenience of applying for a loan in their home.

How Do Contractors Offer Financing to Their Customers?

offering contractor financing

Contractors offer financing to their customers by teaming up with a lending company that integrates with the contractor’s services. EnerBank USA offers many types of loan options for contractor financing.

These financing plans provide your customers with something powerful: options. Having options means homeowners can choose a payment plan that works best with their financial situation. Contractors benefit too: More options for customers means more business and larger, more profitable projects for you.

Why Is Offering Contractor Financing for Customers Beneficial?

Contractor financing programs are helpful to both customers and contractors. Here are the primary benefits.

Staying Ahead of the Competition
Contractors lose business when they don’t offer financing — customers will either drop their project if they can’t afford your bid or find a contractor who does offer financing. Stay ahead of your competition by providing options to the 50% of customers who need help financing a project more than $5,000† .
Providing Customers with Options
Customers appreciate having options. They have choices when it comes to the changes they make to their homes, what materials to use, and which contractor to go with. When you approach your potential customers with financing options, you make it easier for them to choose you for your services. Providing convenient options, such as Same-As-Cash loans and lowinterest installment loans, puts a bigger project with high-quality materials within a customer’s reach. Having options that work for their individual situation, and knowing what options they qualify for, makes it easy to commit to a project and bid.
Close Projects Faster
When you offer contractor financing to your customers through EnerBank you can close the project and secure funding in one visit. Plus, that loan is tied to you, so homeowners are more likely to complete the project.
Potential for Business Expansion
By empowering your customers with options to pay for their home improvement projects, you open the door to more kinds of customers and projects. This leaves space for growing and expanding your business to not only more projects, but projects at higher price points.

† Based on the Bain Report commissioned by EnerBank USA, 2017.

How Does Contractor Financing Work with EnerBank USA?

EnerBank works with you to provide contractor financing to your current and potential customers. Every time you approach a potential customers or offer a bid on a project, you can also offer EnerBank’s financing plans: Same-As-Cash loans or low monthly payment loans. These plans offer:

  • Quick credit checks and approvals
  • No closing, appraisal, or application costs
  • No high default APRs for late payments
  • Won’t tie up home equity or credit lines
  • No pre-payment penalties

EnerBank powers contractor financing for your customers. We'll provide contractors with:

quick and easy loans

Quick & Easy
Loan Applications

marketing materials

Custom Marketing

customer support


account management


personalized services


quick application turnaround

Quick Application

It’s easy to get started. You simply choose the loans you want to offer your customers, then place a banner on your website where they can click to apply for financing. EnerBank also offers loan applications through a mobile loan app and over the phone.

After your customers apply for financing, we’ll let them know if they qualify. You’ll then close the deal with them, sign the contract, and start getting paid. We make it simple, taking care of your customers so you can focus on getting big projects done and growing your business. EnerBank offers personalized customer service to you as the contractor. Our U.S.-based based customer support helps your customers, answering any questions and concerns that may arise along the way.

Learn more about EnerBank financing for contractors

Best Practices for Offering Customer Financing as a Contractor

Are you ready to start offering contractor financing to your potential customers? Doing so will expand your business and give customers more options, but sometimes it isn’t clear how to best offer them. As you start offering financing plans to your customers, consider adopting these best practices:

Chances are you’re already trying to get your name out there with social media ads, signs around town, newspapers, radio, newsletters, word of mouth, etc. When you start offering contractor financing, make sure it’s mentioned in every ad. It could be as simple as adding “financing available” under your logo or in your advertising.
Mention Financing with Every Potential Customer
Don’t let a conversation with a potential customer go by without mentioning that you offer financing and emphasizing that this can give them options to expand the size and quality of their projects. Mentioning this option upfront will generate more serious leads.
Include Financing Options in Bids and Estimates
When you provide an estimate for work on a house, let a customer know about their financing options right away. Customers are often overwhelmed by sticker shock when they find out how much money a project will cost them. One way to soften the blow is by providing detailed information about financing and encouraging them to get help paying for their project. You don’t want to lose out on business because customers are hesitant about the price tag when there’s financing available to help them.
Understand the Plans You Offer
Serious prospects will want to know a little more detail about your financing options, beyond the fact that it is available. So read up on the plans and get familiar with your lending company’s offerings. EnerBank provides training resources and marketing materials you can use to understand the financing options and explain them to your customers. Today’s customers want options, and they want to be informed and educated when they make important decisions. Be prepared to discuss plans with them and provide them the resources they need to make an informed decision.
Provide Options
Again, the modern customer wants options. Make sure your financing programs offer helpful solutions so they can choose a plan that fits their needs, financial situation, and savings goals.
Partner with a Reputable Lending Company
A trustworthy lending partner will take care of all the details of financing for you, so you can focus on what you do best. Make sure to carefully research your options and ask questions about any partners you are considering. EnerBank is a trustworthy option that can support you and your customers. We manage loan applications and accounts, providing these services to your customers securely and professionally.

Offer Contractor Financing to Your Customers

why choose EnerBank

Your customers deserve options, and you deserve the chance to grow and gain an edge over the competition. For a great market advantage, start offering payment options to your customers through EnerBank. We’re available to contractors and customers across the United States.

Get started today with the products and tools you need to grow your business by offering your customers financing options. Join a loan program now!

Find Out More About Contractor Financing Here

take advantage of benefits

Ready to start taking advantage of the benefits that offering contractor financing has for your business? Sign up with EnerBank today and watch your business continue to grow. Sign up here!

Highly Rated by Our Customers