How Financing Flexibility Became Essential in the Contracting Toolkit

Today’s homeowners face a complex set of financial choices. Mortgage rates remain elevated, home prices continue to rise, and affordability concerns are keeping many buyers on the sidelines.

For HVAC contractors, this presents a major opportunity: homeowners are choosing to stay and invest in their current homes rather than move. This trend is driving a surge in home improvement and efficiency upgrades, but it also comes with evolving expectations. Homeowners now want more than exceptional service — they expect quick, flexible, and transparent ways to pay for it.

To succeed in this landscape, contractors need to understand where the financing market is headed, how it aligns with long-term renovation demand, and why fast, easy-to-use financing tools are now essential.

Financing is Evolving — Fast

In the past several years, as interest rates climbed and regulatory conditions tightened, many traditional banks and credit unions began pulling back from consumer lending. Starting in Q4 2022, the Federal Reserve’s Senior Loan Officer Opinion Survey reported eight consecutive quarters of standards tightening for non-credit, non-auto loans at more than 10% of banks, peaking near 30% by Q4 2023. While that trend has leveled off, strict lending criteria remain.

In response, private credit funds, operated by institutional Asset Managers, have stepped in to fill the gap. These non-bank lenders are powering a new generation of digital financing platforms.

That’s good news for HVAC contractors. Financing is not only still available — it’s often faster, more accessible, and better aligned with what today’s homeowners need. The key is partnering with innovative, tech-driven platforms that make it easy to offer competitive financing options integrated directly into the sales process.

Homeowners Are Investing Where They Live

Even as lending sources shift, demand for home upgrades remains strong.

More than 70% of U.S. homeowners have mortgage rates under 5%, and more than half are below 4%. With current 30-year rates still near 7%, upgrading to a new home just isn’t practical for many.

Instead, homeowners are reinvesting in their existing properties. Known as the “love your rate, hate your home” effect, this mindset is fueling renovation growth. And with the median U.S. home now more than 40 years old and inventory still tight, contractors are well-positioned to capture ongoing demand.

But capitalizing on this momentum requires more than skilled labor. It demands a seamless, hassle-free financing experience.

Win More Jobs with Seamless Financing

Gone are the days of paper forms and slow approvals. Today’s homeowners expect financing that’s as fast and easy as online shopping: instant decisions, clear terms, and simple applications they can complete on the spot.

HVAC contractors who deliver this kind of experience gain a real advantage. When customers can review options in real-time and get approved in minutes, it builds trust, removes friction, and accelerates decisions, often enabling the homeowner to undertake larger, more desired projects.

The most effective way to deliver that experience? Point-of-sale financing that integrates directly into your existing workflow. These solutions let homeowners apply, compare terms, and choose their loan — all within minutes, without leaving the contractor’s platform.

These convenient financing options are no longer just an option. They’re an expectation. Homeowners want to move quickly, and they’re more likely to choose contractors who help them do just that.

Turn Financing Into a Growth Engine

HVAC contractors should assess their financing approach with a strategic mindset. Are you relying on clunky referral models or limited credit options? Or are you meeting customer expectations with intuitive, in-the-moment financing?

Contractors who embrace real-time financing solutions gain more than a transactional tool. They gain a competitive edge. The right platform delivers instant credit decisions, a broad range of loan options, seamless integration, and full transparency.