
Episode #25
Approval Rate vs Take Rate: What Contractors Get Wrong About Financing, with Eric Howarth of GoodLeap
Financing is one of the top topics inside the ServiceTitan Hacks community, and it is also one of the least understood. In this episode, Bill Brown sits down with Eric Howarth, SVP of Business Development at GoodLeap and the former head of the financing side of Contractor University at EGIA, where his actual job was grading finance companies on behalf of contractors. As Bill puts it, Eric is not a rep who got handed a rate sheet. He is the guy who used to audit the rate sheets. The core of the conversation is one idea most contractors miss: approval rate and take rate are not the same thing. Approval rate sounds impressive, but the number that actually pays your bills is take rate, meaning did the customer accept the offer, and did they accept it for the full amount you needed to close the job. A quote that gets countered from a 19,000 dollar system down to a 7,000 dollar approval does not show up as a lost sale. It shows up as a repair, and the missing margin never gets counted. Bill and Eric also cover why the counteroffer is a deal killer, why zero interest equal pay plans carry high dealer fees and tend to approve only the highest credit bands, the case for leading with the lowest possible monthly payment plus a no payment option for cash buyers, how debt to income and modeled income really drive approvals, and why the car industry's methodical, payment first approach works. Eric closes with how contractors can pull their own numbers from ServiceTitan and their current lenders to see what they are actually leaving on the table. Whether you use GoodLeap or anyone else, the takeaway is the same: learn both sides of the equation before you choose a finance partner. Learn more about GoodLeap and get connected with Eric's team: https://go.st-hacks.com/13200156 Not in the ServiceTitan Hacks group yet? Join about 11,000 HVAC, plumbing, and electrical contractors: https://go.st-hacks.com/13203376

