As a contractor, offering financing can help you close more deals, but it also adds to your operational costs. Common fees range from 3% to 12% of the job total, which can impact your pricing strategy significantly. For instance, a 3% fee on a $35,000 job totals $1,050, so it's essential to include these costs in your estimates.
When pricing a job, factor in financing fees just like you would labor and materials. Different financing options may come with varying fee structures, such as flat rates per transaction or percentage-based fees. By incorporating these elements into your pricing model, you can ensure your projects remain profitable while offering clients accessible financing options.
