Prequal or financing app? When and why it matters for your sales

Thinking about offering financing to your customers? Before you dive in, it helps to know the difference between a prequalification and a financing application. These are two simple but distinct steps that work hand in hand to close more jobs.

Let’s break it down.

What is a prequalification application?

Prequalification is a fast, no-commitment way for customers to understand their buying power without impacting their credit score. It gives them a clear view of their budget early on, helping them feel confident saying "yes" to the project.

And it works: customers who prequalify are 26% more likely* to convert an estimate into a job, compared to customers who don’t prequalify before financing. That’s a powerful advantage when you’re trying to turn estimates into booked jobs.

Here’s how you might use it. Say a customer is weighing a basic HVAC repair versus a full system replacement. You could say, “You can actually check your financing options with no impact on your credit. It’s quick, and it’ll show an estimate of what monthly payments could look like.” When they see they can afford more than expected, you're more likely to land the upgrade — and the higher-value job. 

What is a financing application?

This is the final step in securing financing through Wisetack. When your customer is ready to move forward, send them a financing application with the exact job amount. Qualified customers will see up to six options and can lock in the one that works best for them.

Once they lock in their offer, that’s your green light to begin. When the job’s complete, they simply release the funds through their application, and you get paid. See what different application statuses mean here.

‍Here’s why it pays to start with prequalification:

• Close more jobs: Prequalified customers are more likely to move forward with the job. This leads to more closed deals.
• Sell bigger jobs: Prequalification gives you and your customer a clearer picture of what they can afford, helping you make more strategic recommendations on what to offer. Customers who prequalify for financing typically spend 30% more on average* (compared to customers who don't prequalify).
• Stand out from competitors: Being upfront about financing helps customers feel in control and more comfortable making big decisions, and less likely to shop around.

When to send a prequalification application vs. financing application

A prequalification is an optional preliminary step to understand an estimate of financing options, whereas a financing application is the final step in securing financing for a project and will show financing options that your customer qualifies for based on their credit profile.

‍Prequalification: Send when discussing options and pricing 

• It helps shift the conversation from “What’s the cheapest option?” to “What’s possible within my budget?”
• Keep in mind, prequalification offers are estimates.‍

‍Financing application: Send when discussing the final price and payment

• This is the real deal. It answers the question, “What are my exact monthly payment options for this $10,000 job?” 
• Through a financing application, customers “lock in their offer,” which secures it for 90 days.
• Once payment options are approved, the funds will be released to you upon completion of the job.

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Learn more about how it works.

Wrapping it up

By understanding when to use prequalification and when to send a financing application, you can make the process smoother for your customers and increase your chances of closing more jobs. 

Head to your Wisetack merchant portal to grab your Prequal Link (Account settings → Merchant information) and start sharing it. For tips on how to add it to your website, check out our Marketing Toolkit. For help, contact us at support@wisetack.com.

*Based on internal Wisetack financing data, 2025