Why You Should Offer Financing – Larry Collins with HFS Financial | F&D Podcast #51

Roughly 75% of home improvement projects involve some form of financing even when the contractor doesn't realize it, and contractors who actively offer financing see an 18–24% increase in business over those who don't.

HFS Financial grew out of the 2008 mortgage crisis by pioneering unsecured personal home improvement loans — the home is never used as collateral, so there's no equity, appraisal, or lien requirement, unlike traditional home equity financing.

Applications use a soft credit inquiry, so a customer can see their conditional approval (often within one minute) with zero impact on their credit score — a key differentiator from lenders that trigger a hard credit hit.

HFS is free to contractors — no fees ever — and instead partners with national banks and credit unions; the cost is built into the customer's loan, and contractors also receive free marketing materials.

Loans reach up to $350,000 with fixed rates starting at 7.99% (capping around 13.99–14.99% based on credit, income, and debt-to-income), terms out to 20 years, and never a prepayment penalty.

Customers are approved for 120% of the requested amount, which builds in room for change orders and gives contractors a natural opening to upsell lighting, railings, patios, or additional projects under a single loan.

Requirements are light: contractors just need to be licensed, bonded, insured, and registered in their state, with a 24–48 hour onboarding that includes a dedicated contractor success manager and a website financing link.

Offering financing overcomes the number-one price objection — much like a car dealership routing buyers to its finance department to move them up to a bigger purchase — and customers often prefer to use the lender's money than deplete their own savings.