"Same-as-cash" is the most commonly offered roofing financing option — and also one of the most misunderstood by both contractors and homeowners. If you're offering it (or thinking about offering it), here's exactly how it works, what it costs you, and how to explain it to customers without creating confusion or liability.
What "Same-as-Cash" Actually Means
Same-as-cash is technically called a "deferred interest" product. Here's the actual structure:
- The homeowner takes a loan for the full project amount
- During the promotional period (typically 12 or 18 months), no interest is charged if paid in full
- If the homeowner pays off the full balance before the promotional period ends, they pay zero interest — same as if they had paid cash
- If they do NOT pay off the balance before the period ends, the full interest that accrued during the promotional period is charged to the account — retroactively
That last point is the critical one. A homeowner who financed $10,000 at 26.99% APR for 12 months and makes only the minimum payments will owe all the accrued interest at the end of the 12 months — often $2,000–$3,000 on top of their remaining balance. This catches homeowners off guard and is the source of most complaints about financing in the home improvement industry.
Your responsibility as the contractor: Make sure the homeowner understands this before they sign. "Same-as-cash means no interest if you pay it off in 12 months — if you don't, the interest does get charged" is a sentence that takes 10 seconds and protects both of you.
Why It Works for Roofing Sales
The psychology of 0% interest
"12 months same as cash" is one of the most effective selling phrases in home improvement. It converts the decision from "do I spend $12,000 now" to "do I spend $1,000 a month for a year with no interest." For homeowners who have the income but not the liquid savings, this is often the bridge from "I need to think about it" to "let's move forward."
Objection handling
The most common roofing sales objection after price is "I'd like to think about it" or "I need to check my budget." Same-as-cash financing gives you a response: "If budget is a concern, we have a 12-month same-as-cash option — no interest if you pay it off within the year. Would that help make this work?" This isn't pressure; it's giving the homeowner a path they didn't know existed.
Higher average job value
When homeowners are focused on a monthly payment rather than a total price, they're more likely to upgrade their shingle package, add ice and water shield they otherwise might skip, or approve the full scope of work rather than taking shortcuts. Financing unlocks full-scope, full-value jobs.
What Same-as-Cash Costs You (Dealer Fees)
Nothing comes free. The financing provider charges you (the contractor) a dealer fee for offering the same-as-cash product. The lender makes their money on the homeowners who don't pay off the balance in time — but they still charge the contractor for the promotional subsidy.
Typical dealer fees for same-as-cash products:
- 12 months same-as-cash: 6–8% of the financed amount
- 18 months same-as-cash: 9–12%
- 24 months same-as-cash: 12–15%
On a $12,000 job with a 12-month same-as-cash product at 7%: $840 dealer fee. You receive $11,160 from the lender.
How to Price for Financing
Two approaches:
Option 1: Price all jobs to absorb financing fees
Build the average dealer fee percentage into your base pricing for all jobs. If you expect 30% of jobs to use financing at an average 8% fee, your blended financing cost is 2.4% — add that to your pricing. Every customer subsidizes the financing option a little, but you never have to have an awkward pricing conversation.
Option 2: Offer a cash discount
Price your jobs assuming financing. Offer a cash discount (matching roughly the dealer fee) for customers who pay by cash, check, or ACH. "Our price is $12,500. If you pay by check or bank transfer, we can do $11,700." This is transparent and customers often choose cash when they understand the difference.
Note: Many financing provider agreements prohibit you from charging customers more for using financing than for paying cash. Check your merchant agreement before implementing a "financing surcharge." Offering a cash discount achieves the same economic result legally.
Minimum Payments During the Promo Period
The lender typically requires minimum monthly payments during the same-as-cash period — even though no interest is accruing. These payments reduce the principal, which is good for the homeowner. Advise your customers to:
- Make more than the minimum payment each month if possible
- Set a calendar reminder for the promo expiration date
- Pay off the balance at least 30 days before the promo period ends — payment processing time means "paid off the day it expires" may not clear in time
The Conversation Script
When introducing same-as-cash at the close:
"We work with a few financing partners that offer a 12-month same-as-cash option. What that means is you'd make monthly payments on the balance with no interest at all — as long as the balance is paid off within 12 months. If for any reason you don't pay it all off in time, the interest does kick in retroactively, so we always recommend setting a reminder. For most homeowners, this is a really clean way to get the job done without tying up your savings. Want to see if you qualify?"
The key elements: explain the 0% clearly, explain the consequence of not paying off in time honestly, invite them to apply. This takes under 60 seconds and lets the financing offer land without suspicion.
Further Reading
- Offering Financing to Roofing Customers — Full guide to setting up financing programs and integrating them into your sales process
- GreenSky vs Hearth vs Mosaic — Which provider to use for same-as-cash and what the dealer fees actually cost you
- How to Integrate Financing Into Your Proposal — Structuring the proposal so the monthly payment lands before the price objection