Enhancify VS GreenSky® (Comparison)

What is the right financing partner for you and your business? In order to help you make the best decision, we put together this head-to-head comparison chart.

Enhancify VS Greensky®:
Which Contractor Financing Program is the Best?

One of the biggest, most impactful decisions you'll make on your bottom line as a business owner is "Which financing partner is right for me?"

If you're reading this, you've probably decided that offering financing in your home improvement business makes a lot of sense - it can help you increase sales, increase average job size, and close more jobs.

One of the biggest, if not the biggest, financing partners for home improvement contractors is GreenSky. GreenSky is a well-known player in the space and has been around since 2006.

GreenSky is an impressive company with a smart business model - they are positioned in the middle between banks and contractors, who then use GreenSky's technology to sell financing to homeowners. The homeowner is able to get a loan to pay for the home improvement project, the contractor wins the job, and the bank makes interest off the loan. This model has been so successful that GreenSky has become a publicly-traded corporation!

There are many things GreenSky does well. However, their business model centers around charging contractors expensive Transaction Fees (also known as Dealer Fees or Merchant Fees). As a result, roofers, builders, and other home improvement contractors end up paying painful fees that eat away all business profits.

In fact, Enhancify was created in response to this painful problem. In response to traditional lenders, Enhancify helps contractors grow their business through financing without charging any dealer fees. Many of our customers are actually contractors and business owners who are tired of having to pay merchant/dealer fees every time they finance a job, run the math, and want to be able to offer financing without paying fees.

Again, there are many options out there. Every business and business owner has their own unique set of needs and circumstances. In order to help you evaluate different options and decide which financing partner is right for your business (so you avoid feeling that dreaded "buyer's remorse"), we put together this head-to-head comparison chart between Enhancify and GreenSky.

 

Enhancify

GreenSky®*

Transaction Fees
(also called "Dealer" or "Merchant" Fees)
No Yes
Average Transaction Fee
(percentage paid by contractor for each job)
No fee 6.82% of Job Financed (average)
Impact on Business Profit Margin
(assuming 10% profit margin for the average roofing business)
10% Profit Margin stays 10%.
Profit Margin protected.
10% Profit Margin becomes ~3.18%.
Loss of 68.2% of profit margin.
Commissions
(Get paid commissions on each job financed)
Yes No
Homeowner Credit Pull Soft Pull Pre-Approval
(Protects customers' credit scores)
Hard Pull Credit Inquiry
(Lowers customers' credit scores)
Homeowner FICO Scores Served Support full spectrum of homeowner credit:
550 - 850 FICO
37% of approved loans over 780 FICO
85% of approved loans over 700 FICO
3% of approved loans below 660 FICO
Weighted Average FICO Score for Approved Loans: 758
Restrictions To Get Started New Businesses Welcome 2 Years of Business History
Financing Amount Limits up to $100,000 up to $65,000
0% Promotional Deferred Interest Rates
(Specific terms and conditions subject to credit approval.)
Yes Yes
Term Length 84 months 120 months
Marketing Materials
Training & Support
Electronic, Paperless Process
States Served 48 States
(not including WV and CT)
50 States
Company Profile Bootstrapped from the ground up by small business owners in response to traditional financing. Powered by community word of mouth. Started in 2018. Publically traded, multi-billion-dollar corporation with over 1,000 employees. Started in 2006.
Company Business Model Simple annual membership fee ($999 / $1,499 / $4,999) 77% of Total Company Revenue comes from charging contractors transaction fees on each job financed
Unlimited Financing Included in Membership Transaction Fee For Each Project
Industry Focus Home Improvement Home improvement, Elective Health Care, Retail, E-Commerce

Enhancify

GreenSky®*

Transaction Fees
(also called "Dealer" or "Merchant" Fees)
No
Yes
Average Transaction Fee
(percentage paid by contractor for each job)
No fee
6.82% of Job Financed (average)
Impact on Business Profit Margin
(assuming 10% profit margin for the average roofing business)
10% Profit Margin stays 10%.
Profit Margin protected.
10% Profit Margin becomes ~3.18%.
Loss of 68.2% of profit margin.
Commissions
(Get paid commissions on each job financed)
Yes
No
Homeowner Credit Pull
Soft Pull Pre-Approval
(Protects customers' credit scores)
Hard Pull Credit Inquiry
(Lowers customers' credit scores)
Homeowner FICO Scores Served
Support full spectrum of homeowner credit:
550 - 850 FICO
37% of approved loans over 780 FICO
85% of approved loans over 700 FICO
3% of approved loans below 660 FICO
Weighted Average FICO Score for Approved Loans: 758
Restrictions To Get Started
New Businesses Welcome
2 Years of Business History
Financing Amount Limits
up to $100,000
up to $65,000
0% Promotional Deferred Interest Rates
(Specific terms and conditions subject to credit approval.)
Yes
Yes
Term Length
84 months
120 months
Marketing Materials
Training & Support
Electronic, Paperless Process
States Served
48 States
(not including WV and CT)
50 States
Company Profile
Bootstrapped from the ground up by small business owners in response to traditional financing. Powered by community word of mouth. Started in 2018.
Publically traded, multi-billion-dollar corporation with over 1,000 employees. Started in 2006.
Company Business Model
Simple annual membership fee ($999 / $1,499 / $4,999)
77% of Total Company Revenue comes from charging contractors transaction fees on each job financed
Unlimited Financing
Included in Membership
Transaction Fee For Each Project
Industry Focus
Home Improvement
Home improvement, Elective Health Care, Retail, E-Commerce

Many contractors switch to Enhancify every month because they are tired of paying dealer fees. If you're an owner/operator who wants to immediately increase your profit margins around 68% by not paying dealer fees, while still closing more jobs through financing, give us a call at 813.499.9879.

Finally, there are times when GreenSky is the better choice for contractors over Enhancify. Specifically, GreenSky's dealer fee effectively "pays down" the rate on the homeowner's loan. For example, if a homeowner's APR is 23.99% with GreenSky, but you as the contractor is then paying GreenSky a 6.82% fee, the homeowner is ultimately presented with an interest rate of 17.17% (23.99% - 6.82%). The homeowner appears to get a better rate, but really you as the business owner are paying down the interest rate on their loan. If you want to show low rates to the homeowner and you're willing to pay down their interest rate out of your profit margin, then GreenSky may be a good fit for you. Remember, Enhancify also offers rates as low as 5.99%, as well as 0% deferred interest promotional financing (subject to credit approval).

To bring this all to life, we've put together a simple calculator so you see the difference in your business revenue and profit by not paying dealer fees, and by earning commission. To see the impact on your business, please give us a call at 813.499.9879.

*GreenSky® is a registered trademark of GreenSky, LLC. Enhancify.com is not affiliated with GreenSky® in any way. Information is used for comparative purposes only. Chart comparison is based on publicly avaiable competitor info compiled in May 2020. All reasonable efforts are made to keep information up-to-date. Information is presented without warranty.