How To Offer Finance For Home Improvement Companies

Banner image concept

A modern UK kitchen renovation in progress: the contractor shares a tablet quote that shows monthly payment options, with warm natural light and a calm, collaborative feel.

Customer finance, explained for renovation firms

Customer finance lets your clients spread the cost of a project rather than paying everything upfront. For home improvement businesses, that matters because renovation budgets are often negotiated in real time, at the kitchen table or over a quote on email. When a customer can see a clear monthly figure alongside the total price, the discussion shifts from whether they can afford it to how they want to structure it. With the UK home improvement market forecast to grow from £11.2 billion in 2024 to £16.67 billion by 2033, finance is increasingly part of how homeowners plan and buy, not an add-on for edge cases.

Why homeowners lean on finance for big upgrades

Home improvement spending is rarely just one purchase. Projects evolve, specifications change, and customers often prefer to keep savings intact for contingencies. That is why many homeowners research funding options online before they commit, even if they do not end up taking a loan. For larger works, equity-backed options such as secured homeowner loans or drawdown-style facilities can suit phased builds because customers can access funds over time and only pay interest on what they use. At the other end of the scale, cards and BNPL-style plans can feel convenient for smaller upgrades, but the overall cost can rise quickly if balances are carried.

How finance translates into more wins and higher values

Offering finance at the point of sale reduces friction at the exact moment your customer is deciding. When repayments are presented clearly within the quote journey, it can lift conversion and encourage customers to approve a broader scope of work, because the monthly cost feels manageable. Industry research on embedded lending suggests project spend can increase by up to 20% when finance is offered seamlessly at checkout, largely because it removes sticker shock and makes upgrades easier to say yes to. Combined with clearer quoting, fast decisions, and modern tools that help customers visualise outcomes, finance becomes a practical way to protect margin while improving close rates.

Typical transaction values in home improvement

What you can offer finance on

1. Kitchen supply and installation

2. Bathroom refurbishments

3. Boilers, heat pumps and smart heating controls

4. Windows, doors and conservatories

5. Flooring, plastering and decorating packages

6. Roof repairs and replacement

7. Solar PV, batteries and EV chargers

8. Insulation, ventilation and draught-proofing

9. Driveways, patios and landscaping

FCA and compliance, in plain English

In the UK, consumer credit activity is regulated and the right approach depends on your role. If you only introduce customers to a finance provider and do not advise on products, you may operate as an introducer, but you still need compliant wording, fair presentation, and a customer journey that is clear and not misleading. Advertising must be balanced, with representative examples where required, and affordability messaging should not imply guaranteed acceptance. Data handling must follow UK GDPR, with consent and secure processes.

Introducer vs broker models, and where you fit

Most home improvement firms want a straightforward way to help customers access finance without turning their sales team into lenders. In an introducer model, you present finance as a payment option and pass the customer to a regulated broker or lender journey to complete the application. You typically receive a fee for successful introductions, and the credit decision sits with the lender. A broker model is more involved and usually requires appropriate authorisation and governance because it can include a greater role in arranging or advising.

For many merchants, the introducer route is the practical middle ground: you keep control of the quote experience, customers get a professional finance journey, and you reduce operational burden. The key is designing the handover so it feels like one joined-up process, with transparent terms and a clear explanation of what happens next.

A clear customer journey (step by step)

1. Quote built around outcomes: You scope the job and produce a written quote with optional upgrades.

2. Monthly payments shown early: The quote displays a few term examples so the customer can sanity-check affordability.

3. Customer chooses a route: Pay in full, deposit plus finance, or finance for the full amount (depending on product rules).

4. Soft checks and eligibility (where available): The customer sees likely outcomes without unnecessary friction.

5. Application submitted: Identity and affordability checks are completed within the lender or broker flow.

6. Decision and e-sign: The customer reviews key terms, total amount payable, and signs digitally.

7. Work scheduled with confidence: You confirm dates and materials knowing funding is agreed.

8. Funds released per the agreement: Payments follow the lender process, sometimes after installation milestones.

9. Aftercare and transparency: Customers can access statements, early repayment info, and support channels.

Getting set up with Kandoo

Kandoo is a UK-based retail finance broker, helping home improvement companies offer customer finance in a way that feels simple for the buyer and workable for the merchant. The aim is to integrate finance into your existing sales rhythm: quoting, options, acceptance, then installation. You can position finance as a planning tool, not a last-minute rescue, by showing clear monthly payments alongside the same detailed scope of work your customers already expect. As demand for renovations continues to rise over the long term, building finance into your proposition can help you convert more enquiries, protect average order value, and give homeowners a sensible way to proceed without compromising on specification.

Next steps you can take this week

• Add a “Spread the cost” line to your quote templates and website enquiry confirmations.

• Train your team on one simple script: total cost, monthly examples, and what happens after an application.

• Review your top three upsells and decide where finance makes the decision easier (not pushier).

FAQs

What types of finance do homeowners expect for renovations?

Most expect instalment-style options for mid-value jobs, and longer-term solutions for large projects. For smaller upgrades, many default to cards or short payment plans.

Will offering finance really increase my average job value?

It can. When customers see manageable monthly payments at the decision point, they are more likely to approve upgrades and broader scopes of work. Embedded finance research suggests spend can rise by up to 20% in some contexts.

Do I need FCA authorisation to offer finance?

Not necessarily. Many home improvement firms operate as introducers, directing customers to a regulated broker or lender journey. However, the exact setup matters, so your process and promotions must be compliant.

Can finance work for green or energy-efficiency projects?

Yes. Demand is growing for funding that supports solar, insulation, and smart-home upgrades, and some lenders offer products designed for these use cases.

How should I present finance on my quotes?

Show the total price and a small set of monthly examples with clear term lengths. Make sure it is transparent, not salesy, and always signpost that approval depends on status and checks.

What about phased projects like extensions?

Phased projects can benefit from longer-term funding, sometimes secured, where customers may draw funds over time. The right product depends on the customer’s circumstances and the project structure.

Will finance slow down my sales process?

Done well, it usually speeds up decisions because affordability is clarified early. Digital applications and e-signing can reduce back-and-forth compared with manual payment arrangements.

How quickly can I start offering finance with Kandoo?

Timescales depend on onboarding, compliance checks, and integration choices, but the goal is a smooth, quote-friendly rollout that your team can use confidently.