Anyone out there offer financing options for their services. We are a house cleaning service and through our training center (we teach cleaning) we thought we would reach out to Affirm and sell our classes with financing option. When I spoke to Affirm they asked why not our cleaning services? Well, yes why not? Anyone has tried this? If you have what are some to dos and do nots have you learned?
Jobber has financing through Wisetack. They work with tickets of under $25k. This isn't great for my business because often the financed jobs are more. The other draw back is they only release the funds once the job is done. So if a customer isn't tech saavy or "forgets" you're waiting to get paid. We started working with Enhancify. It's basically a software that people can apply for financing through. They get the money up front, and if they have a lot of projects can finance them all at once. You pay like $1500 per year and get branded materials, a finance portal and lots of other things to market financing. The other solution is Hearth but it's essentially the same thing as enhancify but more expensive. This is my referral link if you want to check it out. We've financed a few jobs and it was really smooth.
https://www.enhancify.com/contractor-partnership-referral-deal?referrer_id=6a283ef3126c9127269906119
Amazing, so it seems to really work for your business. I love it.
HUGEHomePros Thanks for the referral. I am in Canada and this isn't available here.
Financing makes complete sense for your training center and high-ticket specialty services, but applying it to routine recurring house cleaning will eat into your margins.
Financing platforms shine when ticket sizes are high. For professional classes, post-construction jobs, move-out deep cleans, or large bundled packages, customers appreciate spreading out payments, making it a great sales tool. For standard $150 to $300 recurring cleans, third-party financing transaction fees are too high, so keeping those on automated card-on-file or ACH billing after each visit is much better.
If you roll this out, use soft-pull financing options integrated directly into your quoting software so clients can pre-qualify without affecting their credit. Build the lender's 4% to 8% merchant fees directly into your course and deep-clean pricing so you do not lose margin. Most importantly, always use a third-party lender that pays you full price upfront upon completion so you never take on credit risk or end up chasing unpaid invoices yourself.
Thank you. Yes of course it does not make sense to use it on reoccuring jobs. We are going with Affirm.
I think financing makes the most sense when the price is what keeps a customer from saying yes. For a class or a larger one-time service, giving people a monthly payment option could open the door to customers who otherwise walk away. I would just watch the fees closely so the extra sales are still profitable.
