One contractor I consulted with in Des Moines was closing barely 22% of his retail bids, despite having a stellar crew and top-tier shingles. He was constantly frustrated because homeowners would nod along to his technical expertise, only to go silent when the $16,840 estimate hit the table. Across town, another shop owner named Xavier was running a similar-sized operation but closing 41% of his retail leads. The difference wasn't the product or the price point. In fact, Xavier's average job size was actually $3,400 higher than his competitor's. The pivot point was how they presented the cost. While the first guy was asking for a massive lump sum, Xavier was leading every conversation with a $185 monthly payment option.
At a Glance
Customer financing shifts the conversation from total price to monthly affordability, increasing closing rates by up to 14%.
Integrated financing solves the "check-chasing" problem by ensuring the contractor gets paid in full by the lender, often within 48 hours of job completion.
Offering low-interest or deferred-payment options allows contractors to upsell premium materials without the homeowner feeling the immediate financial sting.
Successful Midwest shops use financing to bridge the gap during seasonal shifts, keeping crews busy even when insurance claims are low.
The Retail Shift in the Great Lakes and Plains
The Midwest roofing market is undergoing a fundamental shift. For years, many of us relied almost exclusively on storm restoration. A hailstorm would roll through cities like Omaha or Indianapolis, and the business model was simple: work the insurance claim, collect the deductible, and move on. However, as insurance companies tighten their belts with Actual Cash Value (ACV) policies and higher deductibles, the "retail" side of the business is becoming the primary engine for growth.
When you move into pure retail, you aren't just competing with the roofer down the street. You are competing with the homeowner's desire for a new kitchen, a family vacation, or a new truck. If you ask for $15,750 upfront, you are a "major expense." If you offer a structured payment plan, you become a manageable monthly utility. According to the National Roofing Contractors Association (NRCA), contractors who diversify their service offerings to include both restoration and retail are better positioned to survive market volatility. Financing is the bridge that makes that diversification possible.
The Psychology of the Monthly Payment
Most homeowners don't have $20,000 sitting in a liquid savings account reserved for a roof. In the Midwest, where the cost of living is relatively stable but median incomes vary wildly between metros like Chicago and rural areas in Kansas, the "sticker shock" of a full replacement is the number one deal-killer.
When Xavier started offering financing, he stopped talking about the total price until the very end of the presentation. He realized that if a customer hears "$19,000," they immediately start looking for ways to cut costs. They want cheaper shingles, they want to skip the ridge vents, or they want to "wait another year." By focusing on a monthly payment of $210, the conversation changes to: "Can we fit $210 into our monthly budget?" Most families can. This allows you to maintain your margins and even upsell better components, like high-wind starter strips or premium underlayment, because the difference in the monthly payment is often less than the price of a couple of pizzas.
The "Good-Better-Best" Finance Flip
"Instead of showing one price, present three monthly payment options. A 'Good' option at $165/mo, a 'Better' at $195/mo, and a 'Best' at $235/mo. You'll find that 64% of homeowners will gravitate toward the middle or high-end option when the delta is only $40 to $70 per month."
Solving the Cash Flow Crunch
Cash flow is the heartbeat of any roofing company. I've seen shops with $3 million in annual revenue go under because they had $450,000 tied up in receivables. Waiting for a homeowner to get their second insurance check, or waiting for them to "liquidate some stocks," is a recipe for disaster.
Financing turns you into the bank's partner rather than the homeowner's debt collector. When a project is funded through a third-party lender, the funds are typically released as soon as the homeowner signs the completion certificate. I worked with a firm in Grand Rapids that reduced their average Days Sales Outstanding (DSO) from 38 days to just 5 days simply by moving 60% of their retail volume to financed jobs. This liquidity allows you to pay your suppliers early for discounts and keep your best crews happy with timely payroll.
Ensuring your back-office is streamlined to handle these transactions is vital. If your current lead flow is inconsistent, adding financing won't save you, but if you have steady leads, financing acts as a force multiplier for your revenue.
From 38 days to 5 days average payment time
Investing in Safety and Quality
The financial health of your company directly impacts the safety and quality of your work. We all know that roofing is dangerous. A recent BLS report on fatal falls noted that roofing contractors saw 110 fatal falls in 2023, the highest in the construction industry. Maintaining high safety standards, buying the best fall-arrest systems, and providing ongoing training costs money.
When you are constantly haggling over price and cutting your margins to win "cash" jobs, safety is often the first thing that gets squeezed. Financing allows you to price your jobs for profit. That profit doesn't just go into your pocket; it funds the safety equipment, the better trucks, and the higher wages that attract top-tier installers. A company that isn't struggling for every nickel is a company that can afford to do things the right way.
Don't Ignore the 'Dealer Fee'
Many financing companies charge the contractor a percentage of the total loan (the dealer fee) to offer low-interest rates to the homeowner. If you don't bake that 5% to 11% fee into your estimate, you are eating your own profit. Always adjust your base price for financed jobs to maintain your net margin.
Overcoming the "Salesman vs. Banker" Mental Block
The biggest hurdle I see with Midwest contractors isn't the technology; it's the mindset of the sales team. Many veteran estimators feel like they are "pushing debt" on people. I tell them to look at it differently. You are providing a service that allows a homeowner to protect their biggest asset without draining their emergency fund.
If you want to see how top performers integrate these tools, look at how they use mobile apps during the inspection. By the time they come down from the ladder, they already have a pre-approval link ready to text to the homeowner. It takes the "I need to talk to my spouse about the money" objection off the table because the spouse can see exactly how the payments fit into their life.
Implementing a 3-Step Financing Strategy
You can't just slap a "Financing Available" sticker on your truck and expect the phone to ring. It requires a systematic approach.
Action Plan
How to integrate consumer financing into your sales process for maximum ROI
A systematic approach to implementing financing that transforms your close rate and average ticket size by removing financial barriers for homeowners.
Partner Selection: Research and vet at least two lenders. One should focus on high-credit-score customers with "same-as-cash" offers, and another should specialize in sub-prime or "second-look" financing for homeowners with bruised credit.
Sales Training: Role-play the "payment conversation." Train your reps to ask, "Do you have a specific budget set aside for this, or are you looking at our monthly payment options?" early in the meeting.
Integration: Add financing calculators to your website and your digital estimates. Ensure that every lead, whether it's from a referral or a verified lead platform, is presented with a monthly payment option as a standard part of the quote.
Want to skip the manual work and get exclusive, verified leads instead?
Get $150 in Free CreditsWhen working with verified lead platforms, make sure your financing options are prominently displayed in your initial quote presentation to maximize conversion rates.
The Seasonal Bridge
In the Midwest, we have the "Winter Wall." From late December through March, sales often plummet. However, interior damage from ice dams doesn't stop. Homeowners who are already stressed by holiday spending are even less likely to have cash on hand for a mid-winter emergency roof.
Offering "No Payments for 12 Months" is a massive lever during the off-season. It allows the homeowner to get the work done now, protecting their home from further damage, while delaying the financial impact until their tax refund arrives or the spring thaw begins. This keeps your core team employed year-round, reducing the cost of rehiring and retraining every April.
Comparing Financing Types
Not all financing is created equal. You need to understand the tools in your belt to use them effectively.
Financing Options Comparison
| Financing Type | Contractor Impact | Best For |
|---|---|---|
| Same-As-Cash (Deferred Interest) | High dealer fees; very high closing tool | High-credit homeowners planning to pay off quickly |
| Low-Interest Long-Term (9.9% for 120 mo) | Lower dealer fees; very low monthly payments | Large projects or budget-conscious families |
| Fixed Rate Installment | Predictable; easy for customers to understand | Standard retail jobs for average credit |
| Second-Look / Sub-prime | Higher risk of rejection; crucial for certain neighborhoods | Customers with credit issues (600 or below) |
Same-As-Cash (Deferred Interest)
Low-Interest Long-Term (9.9% for 120 mo)
Fixed Rate Installment
Second-Look / Sub-prime
The Impact on Referral Business
When you make a large purchase easy, people talk. A homeowner who just got a $22,000 roof for $225 a month feels like they got a great deal, even if they paid a premium for the convenience. They are far more likely to refer you to their neighbor than a homeowner who felt "beat up" by a high-pressure cash sale.
In my experience, the "referability" of a business increases when the transaction is frictionless. Financing is the ultimate friction-reducer. It removes the stress of the price, allows the homeowner to focus on the colors and the quality, and leaves them with a positive feeling about the investment.
Final Thoughts on Scaling
At the end of the day, roofing is a volume game. To scale past the $2 million mark in the Midwest, you cannot rely solely on your own neighborhood or a lucky break with the weather. You need systems that make it easy for people to buy from you.
Xavier, the contractor I mentioned earlier, didn't change his crews or his marketing budget. He simply changed his offer. Within 14 months, he had added two more crews and expanded his territory into the neighboring county. He wasn't just a roofer anymore; he was a sophisticated business owner who understood that in the modern economy, the person who controls the payment often controls the market.