What the Renovo Shutdown Reveals About Trust and the Future of Home Improvement Financing

The recent bankruptcy and abrupt closure of Renovo Home Partners sparked widespread discussion across the home improvement industry. Projects were paused mid-installation, leaving homeowners with uncertainty and contractors navigating the ripple effects of a sudden shutdown.

While Renovo was not a financing company, the situation underscored how funding structures can shape trust, predictability, and confidence once a project is underway.

What creates clarity and reassurance during a home improvement project, especially when timelines or conditions change? Often, the answer comes down to how financing is structured once work begins.

Why Funding Structure Matters in Home Improvement Projects

Home improvement financing is often viewed as a way to get projects started. In reality, the structure of that financing shapes much more than approval or access to funds.

Funding structure influences how contractors plan labor and materials, how homeowners perceive risk once work begins, and how both parties respond when projects do not go exactly as planned. When funds are released without clear alignment to project progress, disruptions can create confusion and erode trust.

Events like the Renovo shutdown simply make these vulnerabilities more visible and accelerate broader conversations about stability and accountability in contractor financing.

What Homeowners Are Saying About Financing, Trust, and Large Projects

To better understand how homeowners experience large projects and financing decisions, we conducted a qualitative study with 100 U.S. homeowners who completed or planned a home improvement project costing at least $15,000. The study was conducted through an FNBO-sponsored research panel to capture directional insights into homeowner sentiment and decision-making.

Big projects trigger immediate stress.

Cost is the first thing most homeowners think about, and anxiety quickly follows. Nearly two-thirds said cost is their initial reaction to a major project, and more than half explicitly described feelings of stress or anxiety tied to paying for the work.

Clarity reduces that anxiety.

Homeowners consistently said they want financing terms that are simple and easy to understand. More than eight in ten said they want key terms clearly laid out upfront so they know what to expect once work begins, without surprises or fine print.

Trust in the contractor shapes trust in financing.

For many homeowners, confidence in the contractor carries over directly to confidence in the financing associated with the project. More than half said their trust in the contractor influences how they feel about the financing itself, highlighting how closely these experiences are connected.

Taken together, these insights point to a shared expectation. Homeowners want fewer unknowns and clearer alignment between payments and progress once a project begins.

Why Staged Funding Is Getting More Attention Across the Industry

These homeowner expectations help explain why staged funding models are gaining more attention in home improvement financing conversations.

Staged funding, sometimes described as milestone-based disbursements, releases funds in phases tied to defined points in the project rather than all at once, aligning funding with project progress.

For contractors, staged funding can support more predictable cash flow and better alignment with installation timelines. For homeowners, it creates a clearer connection between work completed and funds released, reinforcing transparency and trust.

Staged funding is not about restricting access to capital. It is about designing funding structures that reflect how home improvement projects actually unfold and how confidence is built throughout the process.

Our Approach to Balancing Homeowner and Contractor Trust

At Slice, trust is central to how we think about home improvement financing. That includes homeowners who want clarity, transparency, and confidence throughout a project, as well as contractors who rely on predictable, reliable funding to operate their businesses.

Both experiences matter. Contractors play a critical role in shaping the homeowner experience, and homeowner confidence in financing often flows directly from confidence in the contractor. Building trust and clear expectations with both audiences is foundational to responsible financing.

That philosophy is reflected in how our programs are designed. As a bank-backed platform, Slice operates within FNBO’s risk, compliance, and governance framework, with an emphasis on customer advocacy, transparency, and long-term stability.

From the start, customers are in control of their financing experience. Applications are submitted and authorized directly by the customer, and funds are released to contractors only after customer approval.

Clear communication and timely notifications help ensure this transparency does not create friction or delay project timelines.

At the same time, we design processes to support contractors with clarity and predictability. A defined funding review window gives customers time to review their authorization while providing contractors with a consistent, reliable process they can plan around. We also support flexibility for change orders, recognizing that project scope often evolves and financing needs to adapt accordingly.

These design choices help protect homeowners, reinforce transparency, and set clear expectations, while supporting contractors who value fair practices, clear communication, and efficient project execution.

Raising the Bar for Responsible Home Improvement Financing

That same philosophy is guiding how we think about what comes next. We are actively evaluating changes that emphasize smaller initial funding tied to true upfront needs, paired with clearer, milestone-based disbursements as work progresses. The goal is to better align funding with real project flow while reinforcing accountability, transparency, and confidence for everyone involved.

Responsible financing requires ongoing listening, evaluation, and refinement as homeowner expectations evolve and contractor workflows become more complex. Our focus remains on creating a financing experience that balances trust, clarity, and stability for both parties from project start to completion.

Looking Ahead at the Future of Home Improvement Financing

The Renovo shutdown serves as a reminder that financing is not just a transaction. It is part of the overall home improvement experience. When funding structures support clarity, alignment, and trust, they help create stability even when conditions change.

Listening to homeowner feedback and understanding contractor workflows remain essential as financing models evolve. At Slice, we see this moment as an opportunity to raise expectations for how home improvement financing supports both homeowners and contractors now and in the future.