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Indiana Contractor Financing Guide

Everything you need to know about offering customer financing in Indiana: local licensing, platforms, bonding, insurance, and compliance requirements.

Last Updated: January 2025

Quick Summary for Indiana Contractors

  • No statewide contractor license (regulated at local level)
  • Only plumbing is licensed at state level
  • Indianapolis/Marion County: License, $10K bond, $500K liability required
  • Lake County: $300 license, $500K liability or $1M umbrella required
  • All major financing platforms available (GreenSky, Synchrony, PowerPay, etc.)
  • Requirements vary significantly by city/county - always check local authority

Licensing Structure in Indiana

Indiana does not require statewide licensing for general contractors, HVAC, electrical, or roofing. The only trade licensed at the state level is plumbing. All other contractor licensing is handled at the city or county level, meaning requirements vary significantly across the state.

Critical to Know

You must contact your specific city or county building department to understand exact requirements for your area. There is no centralized state licensing system to verify contractor credentials in Indiana.

Licensing by Trade

General Contractors

  • No state-level license
  • Regulated by individual municipalities
  • Major cities (Indianapolis, Fort Wayne, Evansville) have specific requirements

HVAC Contractors

  • No state-level license
  • Local municipalities regulate
  • Fort Wayne/Allen County: 4+ years experience + Prometric exam required

Roofing Contractors

  • No state-level license
  • Some counties (like Marion) may require local licensing

Plumbing Contractors

  • ONLY state-regulated trade in Indiana
  • Contact Indiana Professional Licensing Agency for requirements

Financing Platforms Available in Indiana

All major contractor financing platforms operate in Indiana. Here's what's available:

GreenSky

Available in IN

Active in Central Indiana and Indianapolis area. Partners include Indiana Foundation Service and local contractors.

Typical Requirements
  • 2+ years in business
  • Professional website
  • Valid business license (where locally required)
  • Proof of insurance
  • Clean business credit history
Loan Features
  • Loan amounts up to $100,000
  • Deferred interest promotional periods
  • Works through Synovus Bank partnership

Synchrony Home

Available in IN

Offers the Synchrony Project Card for flexible financing.

Typical Requirements
  • Established contractor business
  • Professional online presence
  • Required licensing and insurance
  • Good business standing
Loan Features
  • Promotional financing and loyalty programs
  • Credit card and installment lending options
  • Fast credit decisions

PowerPay

Available in IN

Popular choice with NO provider fees to contractors. Accepts lower FICO scores (600+).

Typical Requirements
  • 1+ years in business
  • Website with business information
  • Valid contractor credentials (where applicable)
  • Insurance verification
Loan Features
  • Loans up to $100,000
  • Rates starting at 2.99%
  • Soft pull instant approvals
  • No prepayment penalties
  • No provider fees (core differentiator)

Other Platforms Available in Indiana:

Wisetack Enhancify Service Finance FTL Finance Dividend Finance (Solar)

Major City/County Requirements

Since Indiana regulates contractors locally, here are the requirements for the state's largest municipalities:

Indianapolis / Marion County

The Department of Business and Neighborhood Services issues licenses. Note: Does NOT include Beech Grove, Lawrence, Speedway, or Southport.

General Contractor Requirements:

  • General liability insurance: $500,000 per occurrence (death/bodily injury)
  • Property damage coverage: $100,000 per occurrence minimum
  • Surety bond: $10,000 minimum
  • Workers' compensation insurance (if applicable)
  • May require demonstration of experience
  • May require competency exam

Fees:

  • Two-year license fee: $247 (varies by time of year: $247, $185, or $124)
  • Applies to both new applications and renewals

Bond Note: The $10K surety bond covers both the City and unknown obligees if you violate city codes, statutes, laws, ordinances, or cause damages. This is NOT insurance - if the surety company pays a claim, they will seek reimbursement from you.

Lake County

Licenses required for general contractors, electrical, plumbing, and HVAC contractors.

Requirements:

  • Online application with $300 licensing fee
  • Property and liability insurance: $500,000 minimum
  • OR umbrella policy: $1,000,000

Fort Wayne / Allen County

HVAC Specific:

  • Minimum 4 years work experience required
  • Must pass exam offered by Prometric

Working in Other Indiana Cities?

Always contact the local building department or city clerk where you'll be working. Indiana has no centralized system, so every municipality sets its own requirements.

Insurance & Bonding Requirements

While Indiana doesn't have statewide requirements, here's what most municipalities and financing platforms expect:

Typical Municipal Requirements

General Liability Insurance:

  • Indianapolis/Marion County: $500K per occurrence + $100K property damage
  • Lake County: $500K liability OR $1M umbrella
  • Most other cities: $300K - $500K typical minimum

Surety Bonds:

  • Indianapolis/Marion County: $10,000 minimum
  • Other cities: Varies or not required

Workers' Compensation:

  • Required if you have employees
  • Must comply with Indiana state law

What Financing Platforms Typically Require

Most financing platforms want to see contractors carry adequate insurance to protect customers:

  • General liability: $500,000 - $1,000,000
  • Workers' compensation (if you have employees)
  • Valid business license (where locally required)
  • Proof of bonding (if required by your municipality)

Compliance Checklist for Offering Financing

Before You Apply to Financing Platforms:

  • Check if your city/county requires contractor licensing
  • Obtain local business license/permit if required
  • Secure general liability insurance ($500K minimum recommended)
  • Obtain surety bond if required by your municipality
  • Set up Workers' Compensation (if you have employees)
  • Create professional business website with:
  • → Business address and contact information
  • → Services offered
  • → License number display (if applicable)
  • → Insurance information
  • → Professional business email (not Gmail)
  • Register business structure (LLC, Corporation, etc.)
  • Establish business bank account
  • Build good business credit history (2+ years preferred)

How to Apply for Financing Programs

Once you've met local requirements and compliance standards, here's the typical application process:

1

Identify Your Best Platforms

Use our Platform Matcher tool to see which financing programs you're most likely to qualify for based on your business age, revenue, and credit.

2

Verify Local Compliance

Contact your city/county building department to ensure you have all required:

  • → Business licenses
  • → Insurance coverage
  • → Bonds (if applicable)
3

Prepare Your Documentation

Have these ready before starting applications:

  • → Business license/registration (if applicable)
  • → Insurance certificates
  • → EIN/Tax ID
  • → Business bank account info
  • → Website URL
  • → 2+ years of revenue (if available)
4

Submit Applications

Apply to 2-3 platforms at once to compare terms. Check our Application Guide for step-by-step walkthroughs of each platform.

5

Get Approved & Set Up

Most platforms provide approval within 1-3 business days. Once approved, you'll receive training materials and point-of-sale tools to start offering financing.

What You Can (and Cannot) Say About Financing

Once approved for financing programs, you become a merchant/dealer for those lenders. This means you have legal responsibilities under the Truth in Lending Act (TILA) and Regulation Z. Understanding these rules protects both you and your customers.

CRITICAL: Deferred Interest Is NOT "Same as Cash"

Never call a deferred interest promotion "same as cash." This is one of the most common compliance violations.

Why? With deferred interest, interest accrues from day one. If the customer doesn't pay off the full balance before the promotional period ends, they owe ALL the interest that accumulated.

What You MUST Disclose to Customers

1. The Full Promotional Period Length

"If paid in full within 12 months" or "18-month promotional period"

2. That Interest Is Accruing

"Interest is charged from the purchase date if the promotional balance is not paid in full within the promotional period."

3. Minimum Monthly Payments Required

Customers must make minimum monthly payments during the promotional period or they lose the promotional rate.

4. The Actual APR (If Deferred Interest)

If they don't pay in full, what rate will they be charged? (Often 20-30% APR)

5. The Right of Rescission (If Home-Secured)

For loans secured by the customer's home, they have 3 business days to cancel the transaction after signing.

What You CANNOT Say

"Same as cash"

Deferred interest programs accrue interest from day one. Only use "same as cash" if it's a true 0% APR with no deferred interest.

"No interest" (without the qualifier)

Must say "No interest if paid in full within [X] months" - the conditional language is legally required in advertising.

"Everyone gets approved"

False representation. Approval is based on creditworthiness and lender criteria.

Making unauthorized representations about the lender

You can't claim the lender requires certain add-ons or services unless that's actually true and documented.

Hiding dealer fees or commissions

Some platforms charge dealer fees. You must be transparent about all costs.

Adding unauthorized items to the finance contract

Everything the customer finances must be explicitly authorized.

What You CAN (and Should) Say

"We offer flexible payment options through [Lender Name]"

Honest, straightforward, compliant.

"If paid in full within 12 months, no interest will be charged"

Accurate description of deferred interest promotion with proper qualifier.

"Subject to credit approval"

Always include this disclaimer.

"Monthly payments as low as $X/month"

Truthful representation if accurate based on actual terms available.

"Fast approval - often within minutes"

Accurate for most platforms' approval process.

Training Your Sales Team

If you have employees or subcontractors who will present financing options to customers, they must be trained on:

  • → How to properly explain promotional terms
  • → What disclosures must be made
  • → What language is prohibited
  • → How to answer basic customer questions
  • → When to refer to written disclosures or the lender

Most financing platforms provide training materials when you're approved. Use them.

Best Practices for Compliance

  • Always provide customers with written disclosures at point of sale
  • Never rush customers through the financing paperwork
  • Keep copies of all signed financing documents for your records
  • Use only the marketing materials provided by your financing partner
  • When in doubt about what you can say, refer to the lender's written materials
  • Document all customer authorizations for financed items
  • Update your team training annually on compliance requirements

Need a Financing-Ready Website?

We build websites that meet every financing platform's requirements and walk you through the entire application process.

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