(866) 264 - 7007

HVAC Financing: A Complete Guide For Your Business

HVAC Financing: A Complete Guide For Your Business

As an HVAC business owner, one of the essential parts of running and growing your company is having the equipment and supplies necessary to service your customers. 

With numerous financing options available, it’s never been easier for businesses like yours to access capital to help fuel their growth. 

So whether you’re looking for new HVAC equipment or are just in need of some extra funds to help cover emergency repairs, this guide will show you how to find financing options available.

What is HVAC Business Financing?

HVAC business loans are a type of loan or credit line that’s specifically designed for HVAC companies.

It can be used to finance new equipment, cover emergency repairs, or help with any other expenses your company may have.

HVAC equipment financing works just like any other type of loan - you’re essentially borrowing money in exchange for a set interest rate and payment schedule over the course of your contract with the lender.

How can I use the Funding for my HVAC Business?

HVAC financing can be used to fund pretty much anything having to do with your HVAC business.

Want to take on a commercial project but need capital to bridge the invoice?

Want to purchase a new van so you can service a larger customer base?

Want to purchase and replace old equipment?

That said, always make sure to consult with your lender before taking out a loan to get an idea of what’s actually allowed, as some lenders might allow certain use cases.

Every business is different, and there may be some restrictions on how you can use the funds depending on the specific type of financing you go with.

What Are The Benefits Of an HVAC Business Loan?

There are a number of benefits to taking out an HVAC business loan, including:

Help Cover Important Expenses

This can be a lifesaver if something goes wrong and you need to pay for repairs or new equipment right away.

Increased cash flow

This type of financing can help you cover the costs associated with running your HVAC company without having to dip into your personal savings.

Tax breaks

In many cases, businesses that finance their equipment through a loan or credit line can write off the interest payments as a tax deduction.

Reduced equipment costs

By spreading the cost of new equipment over several years, you can save money in the long run and get the latest and greatest technology for your business that can boost your productivity.

No collateral required

Unlike some other types of loans, certain HVAC loans don’t require you to put up your business or personal assets as collateral.

Fast approval

With a wide variety of lenders available, you can usually get approved for HVAC financing within just a few days.

Minimum Credit Score Requirement

Some lenders require a low credit score for small business loans. If banks have rejected your application because of FICO then it might make sense to apply to online lenders like Select Funding.

How To Get HVAC Business Funding

Now that you know a little more about HVAC business financing, it’s time to learn how to actually get it. 

Here are a few tips:

Look for equipment dealers that offer financing

Many large equipment dealers have their own in-house financing department, which can make it easy and convenient to get the money you need to buy new equipment.

Talk to your bank or credit union

If you already have a relationship with a bank or credit union, they may be willing to extend you a loan or line of credit specifically for HVAC businesses.

Explore government grants and programs

The government offers several different grant and loan programs specifically for small businesses - so be sure to explore all of your options before settling on a financing option.

Work with a financial advisor

If you’re feeling overwhelmed by all of the different types of HVAC business loans available, working with a qualified financial advisor can help simplify the process and find the right option for your company.

Types of Business Loans Available to HVAC Businesses

There are a variety of different business loans available to HVAC businesses, each with its own set of benefits and drawbacks. 

Here are the Top 3 types of loans available:

  1. Short-Term Loans

Short-term loans are perfect for companies that need quick access to cash for a specific purchase or project.

These loans typically have a shorter term - from 30 days to one year.

  1. Long-Term Credit Lines

A long-term credit line is perfect for companies that need ongoing financing for day-to-day operations.

This type of loan usually has a longer-term - from one to five years - and comes with a lower interest rate than a short-term loan.

  1. Equipment Leasing

Leasing equipment is a popular option for HVAC businesses, as it allows you to spread the cost of new equipment over several months or years.

This type of financing often has low monthly payments, no down payment required, and flexible terms.

Be sure to compare different lenders before settling on a business loan.

There are many different types of HVAC business financing available today, so it’s important to find one that meets your specific needs.

What Financing is right for me?

So how do you know which one is right for you?

The best way to find the right HVAC business loans for your company is to shop around and compare different options.

There are many different lenders out there who offer HVAC business loans, so it’s important to find one that offers the best rates and terms for your company.

Here are a few things to keep in mind when looking for HVAC business funding:

  • The amount of money you need.

  • The term of the loan or credit line.

  • The interest rate.

  • The fees and other associated costs.

  • Whether you’re eligible for government incentives.

Once you’ve found a financing option that meets your needs, be sure to read the terms and conditions carefully before signing any paperwork.

And if you have any questions, don’t hesitate to ask the lender for more information.

What You Need To Apply For HVAC Business Loans

In order to apply for a loan for your HVAC company, you’ll need to provide some basic information about your company and the loan you’re applying for. This includes:

  • Your company’s name and contact information.

  • Amount needed to be borrowed along with the purpose of the loan.

  • The term of the loan

  • Business and Personal Credit Reports/Score

  • Business and Personal Tax Returns

  • Balance Sheets

  • Income Statements

  • Business Licenses

  • A Business Plan

With this being said not all lenders require this much information. We at Select Funding try to keep the paperwork at a minimum and the only thing that is needed is to fill in our secure online application and provide bank statements. As a result, we are able to fund you in less than 24 hours.

Be sure before signing any paperwork you read overall terms and conditions carefully so you know what you’re getting yourself into beforehand!

Working with an advisor can help simplify things when looking for a small business loan for your HVAC company.

HVAC Business Financing to Grow Your Business

Have you considered how your HVAC business can get the funds it needs to grow?

If so, then this guide will show you all of the options available. We’ve also included information on what type of financing is right for you and how to apply for loans, in general, to help ensure that your application process goes smoothly.

Interested in getting funded? 

We at Select Funding have created a platform specifically designed for small businesses. We base our financing decision on your revenues not profits, require a minimal FICO score of 500 and $10,000 per month in revenues.

Fill in our online application today and get funded in less than 24 hours!

Check if you qualify for funding