Everything you need to know about offering customer financing in Kentucky: licensing, platforms, bonding, insurance, and compliance requirements.
Last Updated: January 2025
Kentucky has a unique licensing structure: general contractors are not licensed at the state level. The state only handles licensing for specific trades (HVAC, electrical, plumbing), while general contractor licensing is regulated locally by counties and cities.
State licensing REQUIRED through the Kentucky Department of Housing, Buildings, and Construction.
No state-level license required for roofing contractors. However, local requirements may apply.
No state-level license required. Regulated at the local level by individual municipalities.
Important: You MUST check with your local city or county building department for specific requirements. Louisville, Lexington, and other major cities have their own licensing and bonding requirements.
All major contractor financing platforms operate in Kentucky. Here's what's available and their typical requirements:
One of the largest contractor financing platforms. Acquired by Goldman Sachs in 2022.
Major financing provider for home improvement contractors.
Popular with HVAC and home improvement contractors.
Kentucky insurance and bonding requirements vary significantly by trade and municipality. Here's what you need to know:
Most financing platforms want to see you carry adequate insurance to protect customers and their investment:
Since Kentucky doesn't require state-level licensing for general contractors, local requirements are critical. Here are the requirements for Kentucky's major cities:
The Louisville Metro Department of Codes and Regulations requires contractors to be bonded and insured.
Always check with the local building department or city clerk in the municipality where you'll be working. Requirements can vary significantly across the state.
Once you've met the compliance requirements above, here's the typical application process:
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.
Have these ready before starting applications:
Apply to 2-3 platforms at once to compare dealer fees and terms. Check our Application Guide for step-by-step walkthroughs of each platform.
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 to customers.
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.
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.
"If paid in full within 12 months" or "18-month promotional period"
"Interest is charged from the purchase date if the promotional balance is not paid in full within the promotional period."
Customers must make minimum monthly payments during the promotional period or they lose the promotional rate.
If they don't pay in full, what rate will they be charged? (Often 20-30% APR)
For loans secured by the customer's home, they have 3 business days to cancel the transaction after signing.
"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.
"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.
If you have employees or subcontractors who will present financing options to customers, they must be trained on:
Most financing platforms provide training materials when you're approved. Use them.
We build websites that meet every financing platform's requirements and walk you through the entire application process.