Hearth vs Service Finance:
Fees, Lenders & Which Fits Your Business
The short answer
Side-by-side
| Hearth | Service Finance | |
|---|---|---|
| Revenue model (battle card) | — | Net interest |
| What the contractor pays | Flat annual subscription; $0 per financed transaction | Dealer ('contractor') fees per plan, from an SFC rate sheet dated 8/26/2018: $0-down 0%-interest promos 6-72 mo = 10.25%-24.00% dealer fee; reduced-interest installment plans (4.99%-12.99% APR, 60-240 mo) = 7.00%-21.00%. HISTORICAL sheet — current fees vary by program; SFC offers 50+ plans |
| Dealer fees | No | Yes |
| Enrollment fee | Yes | No |
| Contractor paid upfront | Yes | Yes |
| How financing works | Marketplace — homeowner sees personalized offers from an 18-lender network, soft credit pull | Direct lender: nationally licensed sales finance company and approved FHA Title I lender; funds dealer directly via ACH after homeowner authorizes completed work. Under Truist ownership the vast majority of loans are held on Truist's balance sheet |
| Lending partner | 17 | 1 (themselves) |
| Apply to multiple lenders at once | Yes | No |
| See application status | Yes | Yes |
| Loan amounts | $1,000 – $250,000 | $1,000 min on promo/short-term plans; $3,000 min on long-term reduced-interest plans; max $25,000-$45,000 depending on plan (per 8/26/2018 SFC rate sheet — historical) |
| Loan type | Installment | Installment |
| Interest-free plans | Yes | Yes |
| Terms | 2–12 years, fixed monthly payments | 6 to 240 months across plans: 0%-interest promos 6-72 months; reduced-interest installment loans 60-240 months (per 8/26/2018 rate sheet). Loans are fixed-amount, fixed-term installment loans — not revolving credit; no adding funds after completion |
| APR range | From 7.99% APR (varies by lender and credit) | 0% on promotional plans; 4.99%-12.99% on reduced-interest plans (per 8/26/2018 rate sheet; current pricing may differ) |
| Credit model | Soft-pull prequalification; lenders serve a wide credit spectrum (FICO down to ~550 on some offers) | Targets prime and super-prime borrowers — average FICO greater than 760 per Truist acquisition announcement. Soft-vs-hard pull and minimum score not published |
| Soft credit pull | Yes | No |
| Trades served | All home-improvement trades | HVAC, windows, doors, siding, sunrooms, flooring, water treatment, plumbing, roofing, insulation 'and many more' — 50+ financing solutions for enrolled home improvement contractors |
| Markets served | Home Improvement | Home Improvement |
| Ownership | — | Acquired by Truist Bank for $2 billion (announced Aug 10, 2021; ~14,000 dealers at time of deal; originations >$2.5B in 2021). Wholly owned Truist subsidiary, HQ Boca Raton, FL |
| Size & stage | 5 years in business; ~200 employees | Mature, small. Owned by bank |
Every Service Finance cell above is sourced (see footer). Rates and terms vary by lender and customer credit.
Where Service Finance falls short
- Prime borrowers only
- Only one lender
- Dealers fees
- Must be in biz 3 yrs
- Paid after job
- Dealer fees charged per loan processed
- Strict company requirements to sign up; loan funds sent to the contractor
- Typically requires higher credit scores
Source: Hearth competitive battle card and sales objection research (internal, reviewed 2026).
Hearth vs Service Finance FAQ
How much does Service Finance cost contractors?
Dealer ('contractor') fees per plan, from an SFC rate sheet dated 8/26/2018: $0-down 0%-interest promos 6-72 mo = 10.25%-24.00% dealer fee; reduced-interest installment plans (4.99%-12.99% APR, 60-240 mo) = 7.00%-21.00%. HISTORICAL sheet — current fees vary by program; SFC offers 50+ plans
Does Hearth charge a dealer fee per loan?
No. Hearth is a flat annual subscription — most companies invest between $2,000–6,000/yr depending on the level of service, plus a one-time $99 setup fee. Financing offers come from third-party lenders and the contractor pays no per-transaction fee.
How do approvals compare between Hearth and Service Finance?
Hearth shows soft-pull personalized offers from an 18-lender marketplace serving a wide credit spectrum. Service Finance: Targets prime and super-prime borrowers — average FICO greater than 760 per Truist acquisition announcement. Soft-vs-hard pull and minimum score not published
Which trades does Service Finance serve?
HVAC, windows, doors, siding, sunrooms, flooring, water treatment, plumbing, roofing, insulation 'and many more' — 50+ financing solutions for enrolled home improvement contractors
Can I switch to Hearth mid-season?
Yes. Onboarding is self-serve; most contractors send their first financed quote the same week. There is no per-loan fee to model — one flat subscription.
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Harper answers the calls you miss, captures leads after hours, and introduces monthly-payment options automatically — so no job inquiry slips through while you're on site.
Concierge onboarding
Hearth's concierge team sets financing up inside your sales process and trains your team, so offering payment options is seamless from day one.