Offering financing helps create satisfied Customers by reducing financial stress, improving affordability, and creating a professional and supportive experience. From a Business perspective, offering financing can significantly improve both your close rate and your average ticket size.
Independent research studies have shown this to be true. For example, according to a report entitled Improving America's Housing 2025 from the Joint Center for Housing Studies of Harvard University:
“When owners paid with credit cards or savings, average project spending was $4,000 and $5,000, respectively, as compared to $10,600 for projects with contractor-arranged financing.”
How Financing Can Help Increase Close Rates
It begins by enhancing the number and quality of your leads. Featuring financing options in advertising, on your website, and on social media platforms provides a competitive edge over Businesses that require Customers to pay in cash or seek out their own financing.
Financing reduces the effect of “sticker shock” by increasing your Customers' access to buying power. Even creditworthy homeowners may hesitate to drain savings or use high-interest credit cards for a home improvement project. Financing provides a structured, transparent alternative, with clearly defined terms and predictable payments.
Finally, when Customers are less concerned about budget constraints, they’re empowered to move forward with projects they might otherwise have postponed.
How Financing Increases Average Ticket Size
Financing eliminates the need to “settle” for something less than the desired result. By turning large upfront costs into manageable monthly payments, homeowners can choose better materials or add highly desired features without overextending their budgets.
Enabling homeowners to achieve their dream project goes beyond increasing your average ticket size. Customers who love their finished project can often become vocal proponents of your Business within their community and online. This creates a powerful feedback loop: delighted Customers become advocates, which can help drive sustainable growth for your Business.
Enhancing the Buying Experience
Today’s consumers see financing as part of professional, full-service care. It shows that the contractor understands budgets and offers modern solutions. The GreenSky® Loan Program aims to provide a frictionless experience to your Customers, by offering the option to prequalify without impacting their credit score1, an easy application process, a range of loan plans, and quick credit decisions.
In an era of fast communications and social media influence, building a solid and ever-expanding foundation of delighted Customers is vital to your Company’s continued growth. Offering financing is not optional if you intend to make this happen.
Learn more about how financing can fuel growth for your home improvement Business
1 To seek prequalification, a soft credit inquiry will be performed. Soft credit inquiries do not impact the applicant’s credit score. If the applicant accepts the prequalification offer and proceeds with a loan application, a hard credit inquiry will be performed.