Roofing financing dealer fees: what contractors pay (2026)

Offering customer financing costs a roofing company in one of three ways: a dealer fee on each financed job, a yearly platform subscription, or no platform fee at all on platforms that don't charge contractors. Dealer fees run from roughly 0–4% of the amount financed on standard-rate loans to about 8% for 12-month same-as-cash and 11–13% for 24-month promotions; long 0% APR plans and deep rate buydowns can reach 15–21%. On a $20,000 roof, a 12-month same-as-cash plan at about 8% costs the roofer $1,600, which is more than a quarter of the job's gross profit at a 30% margin.

This guide shows where those numbers come from, how to price financed roofs without breaking lending rules, and how to keep the cost down.

What does it cost a roofing company to offer financing?

There are three common models. Most roofers pay through the first one without ever seeing a price list.

The fee depends far more on the promotion than on the lender's name. A standard-rate installment loan can cost the roofer close to nothing. The same lender's 0% APR plan can cost 10% or more, because the fee pays for the interest the lender gives up.

How do dealer fees work?

A dealer fee, also called a merchant, transaction or program fee, is a percentage the lender charges the contractor when a loan funds. The lender keeps it out of the payout: on a $20,000 loan with an 8% fee, the roofer receives $18,400.

The clearest public description comes from GreenSky, one of the largest home-improvement lending platforms, in its 2020 annual report to the SEC: the fee is "a set fee percentage (as outlined in a schedule provided to the merchants)" multiplied by the loan amount. GreenSky's blended fee across all its merchants was 7.13% in 2020 and 6.47% in 2021, according to its 2021 filing.

The same filing states the rule behind every fee schedule: loans with "lower interest rates, longer stated maturities and longer promotional periods generally carry relatively higher transaction fee rates."

Why do 0% and same-as-cash plans cost the roofer more?

Because the dealer fee replaces the interest the homeowner doesn't pay. A 0% APR loan earns the lender nothing, so the contractor prepays roughly what that interest would have been worth. The longer the promotional period, the bigger the fee.

One national home-improvement lender's 2019 dealer-fee schedule shows the curve plainly:

This is historical pricing from one lender, shown to explain how fees scale; it is not an offer of credit and not available through Ottri, and the rates shown are the lender's 2019 contract rates, not APRs. The schedule's footnote adds a detail many contractors miss: fees "may be higher for second look credit applications," so a backup lender can charge more for the same roof.

Deferred-interest plans usually cost less than true 0% APR plans because the lender collects back interest from homeowners who don't pay off the balance in time.

What does a dealer fee cost on a real roof?

Census Bureau data puts the median roofing project at $10,000, and full replacements often cost more. Here is the fee in dollars at three example prices:

On a $20,000 roof, a 12-month same-as-cash plan at about 8% costs the roofer $1,600; a 24-month same-as-cash plan at about 13% costs $2,600.

The fee comes out of margin, not revenue. On a $20,000 job with a 30% gross margin, gross profit is $6,000. An 8% fee takes $1,600 of it, or 27%. That is why a 0% APR promotion offered by habit can turn a profitable roof into a break-even one.

How should a roofer price jobs to cover financing costs?

Build your average financing cost into one price for every customer, and use division, not addition. Cash and financed customers must pay the same price (see the next section), so you can't add the fee only to financed jobs.

Start from your mix. If 40% of your jobs are financed at an average 8% fee, financing costs you 3.2% of revenue. To net $20,000 per job on average, price every job at $20,000 ÷ 0.968 = $20,661, whether or not that homeowner finances: cash jobs net $20,661 and jobs financed at 8% net $19,008. Adding 3.2% instead ($20,640) leaves you about $20 short on average, and the gap grows with the rate: at 8%, adding instead of dividing leaves you $128 short.

Know each program's fee before you offer it, and revisit your average each quarter as your mix changes.

Can a roofer charge financed customers more than cash customers?

No, not as a separate financing price. Under the federal Truth in Lending Act's Regulation Z, if a financed customer pays more than a cash customer for the same job, the difference can count as a finance charge that the lender has to disclose. The official commentary uses a $9,000 cash price and a $10,000 financed price: "the $1,000 difference is a finance charge" (Comment 4(b)(9)-1).

One price for everyone is what generally keeps a dealer fee out of the finance charge. Regulation Z treats fees a lender charges the seller as "seller's points," excluded from the finance charge "even if they are passed on to the buyer, for example, in the form of a higher sales price" (Comment 4(c)(5)-1). Charges imposed the same way in cash and credit sales are not finance charges (Comment 4(a)-1).

Two traps catch roofers:

• The "cash discount" workaround. Regulation Z's cash-discount exclusion "applies only to transactions involving an open-end credit plan or a credit card" (Comment 4(b)(9)-2). It doesn't cover the installment loans used for roofs.
• Two quotes for the same roof. Quoting a cash price and a higher financing price is the pattern regulators have targeted. The CFPB's 2024 report on solar financing found hidden fees, including dealer fees, "typically range from between 10 to 30 percent of the cash price," and Minnesota's attorney general sued four solar lenders in 2024, saying most of the fees raised borrowers' costs "between 15% and 30%." Roofing fees are lower, but the rules are the same.

This is general information, not legal advice; have counsel review your pricing policy.

What other costs come with offering financing?

The fee is the visible cost. These show up later:

• Funding at completion. Most programs pay after the homeowner confirms the work is done, so you carry materials and labor until then.
• Change orders. Rotten decking or a permit increase means the lender has to approve the new amount before it funds.
• Second-look pricing. A backup lender may charge a higher fee for the same roof.
• Minimums and monthly fees. Some programs charge low-volume contractors a monthly fee or expect a minimum funded volume.
• Chargebacks and disputes. The FTC's Holder Rule lets a homeowner raise workmanship claims against the lender, and dealer agreements can claw back funding after a dispute. Read the recourse terms before you sign.
• Office time. Every separate lender portal is another login, another status to chase and another set of documents.

Is offering financing worth it for a roofing company?

Financed projects are larger on average. Harvard's Joint Center for Housing Studies found that projects paid with contractor-arranged financing averaged $10,600, against $5,000 for projects paid from savings, in Improving America's Housing 2025. Only 2% of projects were paid mainly with contractor-arranged financing.

We found no independent study that measures how much financing raises a roofer's close rate; the figures online come from lenders and software vendors. The break-even is easier to test: at a 30% gross margin, an 8% fee pays for itself if financing wins you one roof you would otherwise have lost for every 3.75 roofs you finance (30 ÷ 8). A homeowner who chooses impact-resistant shingles because the monthly option fits, or replaces a roof they would otherwise have patched, counts too.

How can a roofing company keep financing costs down?

1. Choose your program menu deliberately. Standard-rate options carry little or no dealer fee. Decide which promotions your company offers, then present the same options to every homeowner.
2. Know the fee before you quote. Check each program's fee schedule so there are no surprises at funding.
3. Keep one price. Build your average financing cost into every quote, using the division method above.
4. Avoid paying twice for a decline. In a single-lender program, a decline ends the financing or sends the homeowner to a pricier second look. On a multi-lender platform, if one participating lender declines, the next can consider the same application and makes its own decision.
5. Count total cost, not just the fee. Subscriptions, monthly minimums, chargeback terms and office time all belong in the comparison.
6. Track what funds. Review funded volume by program each quarter and drop promotions that cost more than they bring in.

How does Ottri's pricing work?

Ottri wrote this guide, so here is how its own model works. Ottri charges your business no setup fee, no subscription and no platform fee, and no demo is required. Your homeowner fills out one application under your brand, and eligible participating lenders, from a network of 20, consider it in sequence, each making its own credit decision. Where a lender program carries its own cost to your business, such as a promotional rate buydown, it depends on the program you choose.

On eligible programs, the participating lender pays your business directly, and applications are never sold as leads. Ottri Global LLC is a licensed loan broker, NMLS 2776988, not a lender. See how it works for roofers on the roofing financing page, or read how to offer financing as a roofing contractor.

Sources

• GreenSky, Inc., Form 10-K for 2020 (filed March 10, 2021) and for 2021, U.S. Securities and Exchange Commission.
• A national home-improvement lender's dealer-fee schedule, version dated February 20, 2019, as published online by an HVAC equipment manufacturer.
• Consumer Financial Protection Bureau, Issue Spotlight: Solar Financing (August 2024).
• Minnesota Attorney General, press release on solar lending lawsuits (March 8, 2024).
• 12 CFR 1026.4 and Official Interpretations 4(a)-1, 4(b)(9)-1, 4(b)(9)-2 and 4(c)(5)-1 (Regulation Z).
• 16 CFR Part 433, the FTC Holder Rule.
• U.S. Census Bureau, 2023 American Housing Survey: Home Improvements (October 2024).
• Harvard Joint Center for Housing Studies, Improving America's Housing 2025 (March 2025).
• Subscription prices: contractor-financing platforms' public pricing pages, checked October 2026.

Frequently asked questions

Who pays the dealer fee on a home improvement loan?

The contractor does. The lender deducts the dealer fee from the amount it funds, so on a $20,000 loan with an 8% fee the contractor receives $18,400. Most contractors build their average financing cost into one price that every customer pays, cash or financed.

What is a typical dealer fee for 12-month same-as-cash financing?

About 8% of the amount financed on one published schedule. A national lender's 2019 schedule charged 7.99% for 12 months same-as-cash with no payments, against 3.75% for a 6-month deferred-interest plan and 13% for 24 months same-as-cash. Fees vary by lender, program and contractor volume.

Do contractors pay to offer financing?

Usually, yes. Most lender programs charge the contractor a dealer fee on each financed job, and some platforms charge a subscription. Some platforms charge contractors no platform fee, though a specific promotion can still carry a program cost.

Is a dealer fee a finance charge?

Generally not, when it is built into one price that cash and financed customers pay alike. Regulation Z treats fees a lender charges the seller as seller's points, excluded from the finance charge even if passed on through a higher price. If the financed price is higher than the cash price for the same job, the difference can be a finance charge. Ask counsel about your own pricing.

Can a roofer offer a cash discount instead of absorbing the dealer fee?

Not safely on a roof loan. Regulation Z's cash-discount exclusion covers credit cards and open-end credit, not the closed-end installment loans used for most roofs. Quoting a lower cash price than the financed price for the same job can make the difference a finance charge the lender has to disclose, and many lender agreements forbid it.

Is a subscription cheaper than paying dealer fees?

Only at higher volume, and only on standard-rate loans. A subscription replaces per-loan fees, not the cost of promotions. At a 3% average fee, a $6,000 subscription equals the fees on $200,000 of financed jobs, and you still pay the lender's fee on any 0% APR promotion.

Does offering financing make a roofing company a lender?

No. In lender programs and multi-lender platforms, a participating lender makes the credit decision, sets the terms and funds the loan. The roofer offers the application and follows the lender's rules, such as consistent pricing and advertising disclosures.