Your customers want the project. They just do not always have the full amount sitting in the bank. That gap is where good jobs go to die, and in 2026 the gap is wider than ever.
The fix is simple. Offer a customer payment plan so the homeowner can pay over time while you still get paid right away. This is what contractor financing solutions do. They take a scary lump sum and turn it into a monthly payment the homeowner can say yes to.
And homeowners are ready for it. A 2026 home services report found that 62% of homeowners are more likely to move forward with a project when payment plans are offered. That is real money walking past contractors who do not offer it.
Here is how to set up payment plans and offer them the right way this year.
Why payment plans matter more in 2026
Costs are up. Homeowners feel it. The same 2026 report found that 77% of homeowners are delaying or scaling back projects because of price, even though almost all of them, 96%, still plan to spend on their home this year.
So the demand is there. The hesitation is about money, not about whether they want the work done. A payment plan answers that hesitation head on. Instead of “I need to think about it,” you get “what would that cost per month?”
The cost of waiting hurts homeowners too. About 4 in 10 say they have put off a repair that ended up costing more later. A small leak becomes a new subfloor. A weak compressor becomes a full system swap. When you offer a payment plan, you help them fix it now instead of paying more down the road. That is a win for both of you.
What a customer payment plan actually is
A customer payment plan lets a homeowner break the cost of a project into monthly payments instead of one big check. You partner with a financing company, the homeowner applies, a lender approves them, and the project moves forward.
Here is the part that surprises folks. You are not the bank. You do not carry the loan or chase payments. The homeowner pays the lender over time. But you get paid on your schedule. Your cash flow stays steady.
Hearth’s also use a soft credit check up front, which does not hurt the homeowner’s credit score. They can see what they qualify for before they commit to anything. That takes the pressure off and makes it an easy thing to say yes to.
How to set up payment plans for your business
Setting this up is not a big project. Here is the order to do it in.
1. Pick a financing partner that fits a contractor
You want a partner built for home improvement, not a bank form that takes two weeks. Look for fast approvals, a simple phone application, and more than one lender behind it. When one platform connects you to many lenders, more of your customers get approved, because each homeowner can be matched to the offer that fits them.
See how Hearth works by clicking here. PS: We make it way easier than the other guys.
2. Watch the fees closely
This is where a lot of contractors get burned. Many financing companies charge a dealer fee or merchant fee on every funded job, often somewhere between 3% and 20% of the loan. Close a $20,000 job and you could hand back $1,000 to $4,000. The bigger you grow, the more it costs you.
Hearth works differently. It is a flat yearly subscription with no per job dealer fees. You connect to 18+ lenders through one application, your customer gets matched to a strong offer, and you keep more of every job. The math gets better as you grow, not worse.
3. Put the monthly payment on your estimate
Every estimate should show two numbers. The total price and the estimated monthly payment. When a homeowner sees “$199 a month” sitting next to “$8,500,” for example, the project feels doable instead of out of reach. You are not lowering your price. You are changing how it lands.
How to offer payment plans the right way
Setting it up is half the job. How you bring it up is the other half. The contractors who win with payment plans all do the same thing. They offer it early and they offer it to everyone.
The 2026 report was clear on this. Financing works best when it is offered up front, not as a last resort. Put it in the first estimate, not at the end after the homeowner already flinched at the price. Bring it up like it is the normal way to pay, because for most folks now, it is.
A line you can use at the table: “Most of our customers spread this out over low monthly payments. I can get you a quick pre-qualification right now, and it will not affect your credit to check.” Short, friendly, and it opens the door.
Then do one more thing most contractors skip. Follow up. The number one reason homeowners do not move forward is price. A quick text that reminds them about the monthly payment turns a “not yet” into a signed job.
What this does for your bottom line
Offering payment plans is not just a nice option for customers. It changes your numbers.
Contractors who offer financing close more jobs and land bigger tickets. When the cost is a monthly payment, homeowners say yes to the upgrade. They pick the better roof. They add the second bathroom. That is why average job sizes run about 30% higher when financing is on the table.
Here is what that looks like with real people. Scott Barnett of Handrail City used Hearth to close six deals and bring in over $40,000 in revenue, a 3,248% return on what he paid for the tool. And a homeowner named Edward had an $11,282 loan funded overnight, with no human involved at all. That is the kind of speed that keeps a job moving and keeps your cash flowing.
How Harper helps you get more loans funded
Here is the quiet problem with financing. About 7 out of 10 homeowners start a loan application and never finish it. They get busy, they have a question, they set the phone down, and the job stalls. That is a funded project you already earned, slipping away while you are out on another call.
In 2026, homeowners want to do the work. They just need a way to pay for it that fits their budget. Offer a customer payment plan and you give them that way.
Harper, the AI Loan Assistant built into Hearth, fixes that for you. It follows up with every homeowner automatically, answers their questions, and walks them through the application day or night, so the ones who would have dropped off actually cross the finish line.
That is how a homeowner like Edward got an $11,282 loan funded overnight, with no one from your team lifting a finger. More finished applications means more loans that actually get approved, and more jobs you get paid for.
And here is the part worth remembering. Harper is not something every financing company has. It is built into Hearth and you will not find it anywhere else.
When you offer payment plans through Hearth, you are not just handing a homeowner a loan application and hoping. You have Harper making sure it gets done.
The bottom line
Pick a partner with fair pricing. Put the monthly payment on every estimate. Bring it up early and follow up. Do that and you will close more high ticket projects, get paid faster, and stop losing good jobs to a number on a page.
The question is not whether your customers want payment plans. They do. The question is whether you are the contractor offering one, or the one they leave to go find it somewhere else.
Offer payment plans your customers will say yes to, and keep more of every job.See How Hearth Works →
Frequently asked questions
What are contractor financing solutions?
Contractor financing solutions let your customers pay for a project in monthly payments instead of one lump sum. You offer the option during your estimate, the homeowner applies and gets a fast decision, and a lender funds the job. You get paid, and they pay the lender over time.
How do customer payment plans work?
The homeowner applies through your financing partner, often right on a phone in a few minutes. A lender approves them. The homeowner then repays the lender over time. You are not the bank and you do not chase payments.
Will offering payment plans hurt my customer’s credit?
Checking offers usually uses a soft credit pull, which does not lower the homeowner’s credit score. They can see what they qualify for before they decide anything.
What do payment plans cost the contractor?
It depends on the provider. Many charge a per job dealer or merchant fee, often 5% to 20% of each funded loan, which grows as you do. Hearth instead uses a flat yearly subscription with no per job dealer fees, so you keep more of every job you close.
Do payment plans really help me close more jobs?
Yes. A 2026 home services report found that 62% of homeowners are more likely to move forward when payment plans are offered. Contractors who offer financing also report larger average jobs, because homeowners say yes to upgrades when they are paying monthly.
When should I bring up financing?
Early. Offering financing works best up front, in the first estimate, not as a last resort after the homeowner reacts to the price. Bring it up as a normal way to pay.
