Rising material and labor costs can lead customers to postpone, shrink or abandon planned renovation projects. When contractors leave financing out of the conversation, they risk losing work that customers might otherwise move forward with.  Discussing financing early gives customers another way to manage the cost and gives contractors a better chance to preserve the project.  

According to Synchrony’s Lifetime of Home Care study, 74% of consumers know contractor-originated financing exists, but only 34% has ever used it. Instead, they often rely on out-of-pocket payments for home repairs.

One reason the gap exists may be that contractors wait for the customer to ask about financing first. Customers may also stay quiet because raising the subject can feel like admitting they can't afford the work outright. The result is that each side waits for the other to begin the conversation, and the conversation never happens. 

Fortunately, 63% of homeowners trust their contractor more than anyone else when making maintenance decisions, the Synchrony study determined. That trust makes contractors uniquely positioned to close the gap between homeowners knowing about financing to considering whether it fits their needs. 

The rising generation of homebuyers are especially receptive to financing. 64% of Gen Z and 71% of Millennial customers actively seek financing when choosing a contractor.

Contractors can make financing a routine part of the initial project discussion by presenting available payment options alongside the scope and estimate. The goal isn’t to assume what a customer can afford, but to make payment options part of the project discussion before price becomes a sticking point.

Contractors also benefit

Beyond giving homeowners payment options, financing can support a contractor’s broader business goals. It can help contractors:

• Bring bigger projects within reach. Financing gives homeowners the option to spread payments over time rather than cover the full cost upfront, which can help them consider a more complete renovation instead of scaling back the scope. 
• Support repeat business. Customers who already have a credit product like the Synchrony Project Card may have a convenient way to finance a future purchase with a contractor. Used that way, financing can function as a way to generate loyalty, not just as a deal-closing tool. 
• Manage cash flow, not just sales. Financing protects the contractor's cash position. Once a transaction is complete, Synchrony funds the contractor's account within two business days, meaning they aren’t carrying the receivable while the customer pays it down over time. 

It’s not a heavy lift

Contractors don't need to create a separate financing process to close the gap. Synchrony has integrated financing widely used field-service management platforms, allowing contractors to access financing options within the software they already use rather than switching between multiple systems.

Discussing financing early in the conversation gives homeowners a fuller picture of their options as they consider a project’s scope and cost. Rather than treating payment as a separate discussion, contractors can help customers consider the work they want to undertake alongside how they might pay for it. 

The financing gap will close. The only question is whether contractors, and the lenders who partner with them, drive that change or react to it. Homeowners already trust contractors with their homes. Extending that trust to include how they pay for repairs, is a natural evolution.