Buy Now, Pay Later: How Flexible Payments Are Transforming Home Improvement
A New Era of Consumer Behavior
Recent data illustrates how deeply payment flexibility has become part of everyday life. More than 56% of U.S. consumers used a BNPL service in the year ending October 2024 (eMarketer). An April 2025 survey of 2,000 U.S. consumers aged 18 to 79 found that nearly half of adults have used a BNPL service (Forbes).
If consumers are financing groceries, furniture, and vacations, it's only natural that they'd want similar flexibility for big-ticket home improvements—whether that's a new roof, kitchen renovation, or HVAC system replacement.
For homeowners, affordability isn't just about the total price anymore; it's about how the project fits into their monthly cash flow and comfort level. A $15,000 roof or $10,000 HVAC upgrade might feel more attainable when presented as a $200 monthly payment instead of a large up-front cost.
This shift represents both a challenge and an opportunity. Those who fail to offer financing may lose jobs to competitors who do. On the flip side, those who embrace payment flexibility can position themselves as customer-focused, modern, and better equipped for success in a competitive market.
Why Offering Financing Gives Contractors a Competitive Edge
Offering financing isn't just a convenience—it's a strategic sales advantage. Presenting flexible payment options early in a proposal helps homeowners see how a project can fit within their budget and reduce sticker shock.
Flexible payment options also allow homeowners to consider enhancements such as premium materials, design upgrades, or energy-efficient systems without paying the full amount upfront. This flexibility helps homeowners choose solutions that best meet their needs and often leads to greater project satisfaction. In a competitive bidding process, the contractor who offers financing often wins the job—not because their price is lower, but because they've made the investment manageable and realistic within the homeowner's budget.
Buy Now, Pay Later in Home Improvement: A Long-Term Trend Contractors Can’t Ignore
The numbers back it up: Fortune Business Insights projects the global BNPL market will grow from $37.19 billion in 2024 to $167.58 billion by 2032. This surge shows that flexible payment options aren't just a short-term trend—they're here to stay.
As home prices, material costs, and labor rates continue to rise, homeowners will keep seeking ways to manage expenses without delaying critical improvements. Contractors who consistently offer financing are better equipped to meet those evolving needs and maintain healthy business growth.
Modern Financing Made Simple
Some contractors hesitate to bring up financing, assuming it complicates the process or that their customers can pay cash. The reality is that qualified financing partners make it easier than ever—from fast approvals and digital applications to user-friendly tools that integrate directly into proposals.
Offering flexible payment options is no longer an add-on; it's part of a modern customer experience. By normalizing financing in every conversation, contractors demonstrate that they understand their customers' needs and strive to make their projects accessible as possible.
The Bottom Line: Flexible Payment Options Will Continue to Reshape the Home Improvement Industry
Flexible payment options are reshaping consumer buying decisions and will continue to define the future of home improvement. Residential contractors across all industries who lead with flexible payment options are building trust and delivering the experience today's homeowners expect.
Watercress Financial empowers contractors across every trade with easy, flexible financing solutions designed to fit the way homeowners buy today.
Are you ready to give your customers the flexibility they expect and your business the edge it deserves? Become a Watercress Financial Partner.
– Madison Schoppe (Marketing Content Developer)