How To Offer Finance For Electrical Work

Customer finance, explained in plain English

Customer finance lets your clients spread the cost of electrical work into manageable monthly payments while you get paid promptly through a lender, rather than waiting for instalments yourself. In practice, it becomes another payment method alongside bank transfer and card, but with far more flexibility on ticket size. This matters because electrical work is increasingly sold in larger bundles (consumer unit upgrades alongside rewires, EV chargers with remedial works), and homeowners are budgeting tightly. Industry surveys show that payment plans are no longer unusual in the trade: around 1 in 5 UK electricians now offer instalments, and many more are being asked for them.

If customers are already asking, finance is not a sales trick. It is a service expectation.

Why homeowners and small businesses choose finance

Electrical work is often urgent, safety-led, or tied to big life projects: renovations, extensions, or preparing for an EV. Even when customers can afford the total cost, they may prefer to keep cash for other commitments, particularly in a cost-of-living-sensitive market. Demand is visible on the ground: a sizeable share of electricians report being asked about payment plans recently, including firms that do not yet offer them. Government-backed momentum around EV charging and related incentives has also pushed more customers towards higher-value installations, where spreading the cost feels sensible rather than indulgent.

Where finance lifts sales (and protects your margin)

Offering finance can improve conversion in three ways: it reduces the immediate payment hurdle, it helps customers choose a better long-term solution (not just the cheapest), and it keeps your quote competitive without discounting. Instead of cutting price to win the job, you can keep margin and offer a monthly figure that feels attainable. Longer terms are now common in the market, with some providers promoting repayment periods up to 60 months for electrical upgrades, which can materially reduce monthly outlay. You can also present tiered options, such as interest-free periods for customers who can clear the balance sooner, alongside fixed-rate plans for longer horizons.

Standout line: A strong finance offer lets you sell outcomes, not compromises.

Typical transaction values (UK benchmarks)

Figures vary by property, region and specification. The key is consistency: offer finance for the jobs customers already buy, then expand to bundles.

Electrical products and services customers often finance

1. EV charger installation packages (including cabling and protection)

2. Full or partial rewires

3. Consumer unit upgrades and safety remedials

4. Electrical upgrades for extensions and loft conversions

5. EICR remedial works for landlords

6. Smart-home systems, lighting upgrades and data cabling

7. Solar-related electrical works (where within your scope)

FCA and compliance: what you must get right

If you are introducing customers to a finance provider, you need to be clear about your role, the nature of the credit, and the key features of the offer. Promotions must be fair, clear and not misleading, and you should avoid giving the impression you are the lender. Customers must understand that approval is subject to lender checks and affordability assessment. You also need a process for handling complaints and ensuring staff present finance consistently and accurately.

Broker and introducer models: how they work in practice

Most trades businesses do not want to become a lender, manage regulated credit, or run collections. An introducer or broker model solves this by letting you offer finance through an authorised partner and panel of lenders. You present finance at quote stage, the customer applies (often digitally), the lender assesses eligibility and affordability, and once approved the lender pays you for the work in line with agreed terms. The customer then repays the lender over time. This approach is widely used by contractors offering both interest-free options over shorter periods and fixed-rate plans over longer terms, giving customers a clear choice while keeping your cash flow predictable.

Key principle: you do the electrical work. The lender does the lending.

What the customer journey looks like (step by step)

1. Build finance into your quote: show the total price and an example monthly cost based on a representative term.

2. Explain the options clearly: for example, interest-free for shorter terms and fixed-rate for longer terms, where available.

3. Customer chooses finance at point of sale: in-person, by phone, or via a link after the visit.

4. Application and checks: the customer completes the application and the lender runs the required credit and affordability assessment.

5. Approval or alternative: if declined, offer another payment method or adjust scope, rather than pressuring the customer.

6. Confirm the job and schedule: once approved, confirm start date, specification, and any deposit requirements if applicable.

7. Complete works and sign-off: keep documentation tight (scope, variations, certificates).

8. You get paid: payment is made to you under the lender arrangement, supporting working capital.

9. Customer repays monthly: the lender manages repayment collection and ongoing account servicing.

10. Aftercare and upsell: maintenance, add-ons, or staged upgrades become easier when the customer trusts the payment process.

Getting started with Kandoo

Kandoo helps UK trades and home improvement businesses offer customer finance in a way that supports conversion without tying up cash. The practical starting point is to define your typical job sizes, decide which services you will offer finance on, and agree how you will present monthly costs in your quoting process. From there, you can embed a simple finance message on your website and in your follow-up emails, then train anyone who answers the phone to introduce finance confidently and consistently. Done well, it becomes a calm part of your sales process: clear options, clear terms, and a customer who feels in control.

Next steps:

• Review your last 20 quotes and identify which ones stalled on price

• Choose 3 core services to launch with (for example EV chargers, rewires, consumer unit upgrades)

• Decide where finance appears: website, quote template, and follow-up text

FAQs

Q: Will offering finance mean I get paid in instalments?

A: Not usually. With a broker-led arrangement, the customer repays the lender monthly, while you are paid under the lender’s process once the job is agreed and completed as required.

Q: Do customers actually want payment plans for electrical work?

A: Yes. Market research in the UK trade sector indicates that a significant share of electricians are being asked about instalments, and adoption has risen to roughly 1 in 5.

Q: Can I offer 0% APR?

A: Potentially. Some contractors offer interest-free options for shorter terms alongside fixed-rate plans for longer terms, subject to lender criteria and customer approval.

Q: What terms do customers expect?

A: It depends on the job size. For larger upgrades, longer terms are increasingly marketed in the UK, including options that can extend out to 60 months, which reduces monthly cost.

Q: Is offering finance risky for my cash flow?

A: It can be if you try to run instalments yourself. Using a third-party lender helps align payment to you with the customer’s longer repayment schedule, supporting working capital.

Q: Do I need to chase missed payments?

A: If the customer is paying a lender, the lender manages collections. If you are running your own instalments, you need robust contracts, reminders and processes, which can be time-consuming for small firms.

Q: How should I mention finance in my quote?

A: Keep it factual: show the total price, an example monthly cost, and make clear that finance is subject to status and affordability checks. Avoid overpromising approvals.

Q: Does finance help me win EV charger work?

A: Often, yes. EV demand is being supported by policy and incentives, and finance can make an EV charger package feel accessible, particularly when upgrades are required.