Small business contractors are bearing the brunt of one of homeowners’ biggest complaints today: the rising cost of repairs and upgrades. From HVAC replacements to roofing, plumbing, and electrical work, these essential projects have become increasingly out of reach for many families.
This cost barrier isn’t just a challenge for homeowners; it can also stall growth and strain customer relationships for contractors. Independent software vendors (ISVs) are stepping up by embedding financing options right into the platforms that technicians use daily. This integration makes it much easier for contractors to present financing smoothly, naturally, and confidently during their sales conversations—no awkward pauses, no juggling between apps.
Why Embedded Financing Matters
Home improvement projects have always been a major investment for homeowners, many of whom are already managing mortgage and car payments, rising food costs, and other expenses. But these costs continue to grow. The Leading Indicator of Remodeling Activity (LIRA) projects a 2.5% increase in home renovation and repair spending in 2025, reaching a record $526 billion by the first quarter of 2026.
With prices climbing, homeowners face tough decisions and are putting projects on pause rather than moving forward with HVAC replacements, roof upgrades, or plumbing repairs. According to Angi’s 2025 State of Home Spending Pulse, 71% of homeowners have postponed a planned project this year. A pause may ease short-term budget pressures, but it can ultimately lead to far more costly repairs in the long term. This is where ISVs come into play.
ISVs create applications or systems for key industries, such as home services. Originally focused on scheduling and invoicing, many ISVs have evolved to embed financing directly within their platforms, making it easier for technicians to have financing conversations as part of their normal workflow. This seamless approach reduces awkwardness, better informs customers, and keeps projects moving forward. Homeowners are welcoming these additions. In the new 2025 State of the Trades report from ServiceTitan, Synchrony, and Visa, 41% of major-purchase shoppers actively seek financing, and 69% of HVAC shoppers believe financing makes large purchases more affordable.
Financing capabilities can alleviate customer concerns during the sales process by making these investments less daunting. In fact, our research found that 62% say financing is the only way they can move forward with big projects.
A Competitive Edge for ISVs
Today, nearly two-thirds of small business merchants use ISVs at the point of sale, but many don’t offer embedded financing. This is a major oversight. According to ServiceTitan research, contractors who offer embedded financing through their platforms experience 12% higher close rates and 13% larger average ticket sizes compared to those who don’t.
The secret? It’s all about integration. The best ISVs embed financing into the exact tools that technicians use every day, such as estimates, scheduling, and payments, so the sales process flows naturally. No switching between windows or interrupting the conversation. Instead, financing becomes part of the discussion, helping homeowners weigh costs in real time.
The key is for small businesses to look for ISVs that deliver the right embedded finance offering. Some key things to look for include the following:
- To deliver maximum value, select an ISV that seamlessly embeds these capabilities into the tools you are using on-site for estimates, scheduling, and payments. The last thing you want is for the sales process to get disrupted because you are forced to jump between different windows. When properly integrated, financing can be naturally woven into the sales conversation as customers begin weighing the project’s projected costs.
- Keep in mind that every homeowner’s financial situation is different. Ensure the financing partner offers multiple payment options so customers can find the one that best suits their needs.
- Remember that speed equals sales. Make sure the embedded financing service offers direct-to-device applications and pre-fill technology that don’t just simplify the application process but deliver fast on-the-spot approvals that keep things moving forward.
Turning Cost Concerns into Confident Investments
As repair costs climb, homeowners are forced to postpone essential projects, risking bigger, costlier problems later. Fortunately, this isn’t just a challenge; it’s fueling an evolution in the home services industry. By partnering with ISVs that embed financing seamlessly into daily workflows, savvy contractors can confidently offer payment solutions that help customers manage costs without hesitation.
The result? Financing ceases to be a hurdle or an awkward ask. It becomes a natural part of the conversation and a driver of business growth. Ultimately, embedded financing makes what could be a stressful spending decision a confident investment in the home.
Curtis Howse is EVP and CEO of Home & Auto at Synchrony. Synchrony is a leading consumer financing company at the heart of American commerce and opportunity.