Top Financing Options for Roofing Contractors in 2025

Roofing projects are some of the most expensive that homeowners can do. One of the key reasons is that they’re so expensive for roofing contractors themselves. Many roofing contractors offer flexible payment options to customers, which can help them get paid now as clients make monthly payments, but others don’t have that luxury. When roofers can’t get all the money they need for a project upfront, they may need to explore small business loans.

Roofing contractors with financing can cover the materials costs for roof repairs or installations, as well as the labor, equipment, permitting, and many other costs. Here, we explore financing for roofing companies.

In this article:

• Why roofing projects are so expensive.
• How roofing contractors with financing can reduce stress on their businesses.
• The best types of financing options available to roofing contractors.

Why Roofing Contractors with Financing Are So Important

Just as customers can take out home improvement loans or access other loan options to pay for significant house projects, roof contractors with financing can cover cash flow concerns, get the working capital they need for specific projects, and even offer better payment plans to customers without having to work with a finance company.

The average roof replacement cost for homeowners is $11,000, which can present challenges to homeowners and roofers alike. Some of these key costs include:

• Materials: Whether it’s a basic roof inspection, a full roof replacement, or a new roof installation project, roofing materials are expensive, covering everything from shingles to gutters to the specific roofing tools required for a project.
• Insurance: Roofers work a dangerous job, and their business insurance can be expensive. While homeowners’ insurance might cover a roof replacement or repair for a homeowner, roofers pay out of pocket for their own insurance.
• Warranties: Some roofing contractors offer a warranty on their work, which exposes them to additional, unpredictable costs down the line if the work isn’t up to standard or a client’s expectations. Roofing contractors with financing can get a little more flexibility to cover the costs of backing up a warranty.
• Seasonality: Depending on where you are in the country, roofing may not be a year-round job. Roofing contractors with financing can use a loan amount to keep the business open in the slow season, cover marketing costs when business picks back up, and get flexible loan terms to repay the money when business starts back up.
• Slow payment cycle: Unless you work with a finance company or a homeowner is paying you with the proceeds of a home equity loan or homeowners’ insurance policy payout, it’s very possible that clients will not be able to pay for the entire project upfront. That passes the initial cost burden onto roofers, but roofing contractors with financing will have greater flexibility to cover that hassle and still offer low monthly payments to customers.

Top Financing Options for Roofing Contractors

Roof contractors with financing can get the flexibility they need to address the challenges of being a seasonal business and pass the benefits onto customers. Major projects like roof replacement with financing are more manageable for both contractors and homeowners. These are some of the best financing options for roofing contractors.

Term Loans

Available from both traditional and online lenders, term loans are conventional loans in which you get an upfront, lump sum payment that you pay back with monthly payments, plus interest. These flexible loans can be used for any business purpose, from getting the materials for a metal roof to paying employees.

The application and approval processes tend to be easier with online lenders, but you’re more likely to get a low interest rate at traditional lenders.

SBA Loans

The United States Small Business Administration (SBA) offers a range of loan programs that can benefit roofing contractors. The popular 7(a) program offers both term loans and working capital lines of credit to support contractors. Roofing contractors with financing can cover the necessary costs for many types of roofing projects and, with SBA financing, may have preferred interest rates and loan terms. However, SBA loans have some of the strictest eligibility requirements and the application process may be rigorous.

Business Lines of Credit

One of the more flexible options for roofing contractors with financing, a business line of credit is like a cross between a credit card and a term loan. A lender approves your business for a maximum line of credit, which you can withdraw from when you need to make purchases. You only pay interest on the amount you withdraw, rather than the full amount.

Most lines of credit are revolving, meaning when you pay back what you’ve borrowed (plus interest and fees), you’ll have access to the full amount again. This can be a very valuable resource for roofing contractors dealing with specific project costs, as they can pay for the materials they need and pay back what they borrowed as the client pays them.

Equipment Financing

Equipment financing is an excellent resource when you need to purchase specific equipment. Equipment loans are secured by the equipment itself, meaning if you fail to repay the loan, the lender can take the equipment. Unlike unsecured loans, which don’t require collateral, equipment loans may have lower interest rates and require a smaller down payment since the lender has the fallback option of seizing the equipment if you can’t repay the loan.

Invoice Factoring

A good alternative to traditional options for roofing contractors with financing, invoice factoring is when you sell an outstanding invoice to a third party for an instant influx of cash. The invoice factoring company assumes the burden of collecting the invoice, while you get the money you need to support your business through seasonal downturns or payment delays.

Final Thoughts

Roofing contractors with financing can overcome some of the most frustrating challenges to running a seasonal home improvement business. Not only can financing help bridge gaps between the slow and busy seasons, but it can also support your business growth by helping you buy new equipment, hire more staff, expand your market, or even offer better payment solutions to customers.

FAQs

Do roofing contractors with financing have an advantage over others?

Whether you’re a roofing company that offers financing options to customers or you have the support of a financier, you may have an advantage over competitors without financial backing. With financing, you’ll have more working capital to expand your market, complete more projects, and provide better service to customers.

Should my roofing business offer financing?

Offering financing to customers is a great way to ease the burden of paying for a roofing project without stressing your business. You can either work with a finance company to provide solutions directly to customers, or roofing contractors with financing can use the backing of loan proceeds to float credit to customers in exchange for a flexible payment plan.

How do you get business financing?

Different types of financing have different application processes, but generally, you will need to determine your funding needs and research what your business may be eligible for. When you’ve chosen a lender or partner, gather business documentation like basic information, licensing, financial statements, and tax returns, and submit an application.

What do I need to qualify for business financing?

To become a roofing contractor with financing, you’ll likely need to have at least a year in business, positive annual revenues, and a good credit score. However, requirements vary between lenders and some may have less strict qualification requirements than others.

How can people finance a new roof?

A new roof is a very expensive home improvement project, but a very necessary one. Homeowners might finance it through a home equity loan or have proceeds from a homeowners’ insurance claim, but roofing contractors with financing can also make things easier on them by providing customizable payment plans. You can do this by partnering with a finance company directly or using your own loans to provide credit to customers.

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