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HVAC Business Loans: Heating, Ventilation & Air Conditioning Company Financing

Financing For HVAC Companies

Expansion and working capital are all important aspects of any industry. Reviewing the variety of financing and loan options available to HVAC business owners can help when there are slow times or a HVAC business owner is looking to grow their business

HVAC stands for heating, ventilation, and air conditioning. HVAC refers to the different systems, machines, and technologies used in indoor settings, but HVAC technicians actually have a much more diverse job than one would think, and many people often take these things for granted! HVAC technicians work on the installation of heating, ventilating, or air conditioning systems for all types of settings, such as homes, offices, hallways, and transportation systems – imagine if our public transportation did not have these! HVAC technicians are also hired to repair and install heating and air conditioning systems in newly built homes, or they can be hired to regulate the humidity level in an office building. All HVAC technicians typically have a variety of certifications and training, as well as certifications and training in specialty areas such as hydronic gas, hydronic oil, air-to-air heat pumps, gas furnaces, and air distribution.

Heating, Ventilation and Air Conditioning Industry Information and Statistics

The HVAC industry is heavily reliant on the construction industry. While a portion of HVAC business owners profits are generated through repairs and regulation of current systems, a majority of HVAC business revenue is generated through the construction of new buildings and homes. The construction industry has faced some difficult times, however the construction industry is booming in 2016 and continuing to grow – this is great news for the HVAC industry. Without new homes and office buildings, the HVAC industry would have no work! Luckily in the past five years the housing market has rebounded, allowing the HVAC industry to grow with expectations of an exciting future.

Momentum for residential jobs is increasing in the HVAC industry, but where HVAC business owners are really going to see impressive growth is through nonresidential buildings. While the construction industry has been up and down, therefore making the HVAC industry go up and down, it is estimated that the United States HVAC industry market will reach 11 percent growth in 2016, with continuous expected growth in the following years. The major issue being faced by every HVAC business owner today though is innovation. There will always be a need for the HVAC industry, but to compete in this large and competitive market, HVAC business owners will need to continue to innovate their products and skill sets, as well as learning to effectively reach the key consumer markets; this is predominately done through marketing, social media, and implementation of the Internet of Things into a HVAC business. The sky is the limit for all HVAC businesses right now, especially those HVAC business owners that are implementing the major trends for this industry, especially when it comes to energy efficiency and offering the best technology available to consumers.

Why Would HVAC Businesses Need Financing?

  • Efficiency standards and regulations are the biggest issue that HVAC business owners will be facing. As of 2015, new residential central air conditioning systems and heat pumps had to meet new stricter standards, depending on where the new home was being built. Along with this issue, the changes regarding all split-heat pumps has been put into effect, leaving many HVAC business owners and HVAC technicians reeling from the costs and issues with the transition into newer units. Whether your HVAC business has already made these transitions or are in the process of making these transitions, financing options are available to help make this costly mandatory transition.
  • Green products: this is the number one demand of all younger consumers today. Going green is dominating today’s society, which is forcing many HVAC business owners to transition into offering more, but expensive, green products. There are always financing and loan options for HVAC businesses to help make this important transition.
  • Technology is dominating every industry in the United States right now. For HVAC companies, offering innovative products, systems, and services is essential. There are many smart technologies on the market right now for both HVAC contractors and customers, including efficient smart thermostats, home automation platforms, smart ventilation systems, and mobile applications that allow customers to manage every aspect of their home. In addition to supplying customers with more technologically advanced products, HVAC business owners are also reaping the rewards by transitioning into the Internet of Things for day-to-day business operations. Purchasing these items may be expensive up front, but being able to have run a more efficient HVAC company will save a HVAC business owner money in the future, as well as boosting customer sales.
  • Online marketing is an interesting outlet for HVAC companies because while having online social media is absolutely essential for every HVAC business owner, utilizing snail mail is also still a great outlet for the HVAC industry. Many HVAC business owners that are implementing both outlets for advertising and great deals are seeing positive results. However, affording people to manage both aspects of the HVAC advertising world can be expensive up front costs, so considering financing options for HVAC businesses can help make this idea a reality.
  • Payroll and employee expenses are a necessary expense in every industry. For the HVAC industry, payroll can be incredibly expensive, especially during slow seasons. Many HVAC technicians have certifications and training that warrant higher pay, especially because the demand for well trained HVAC technicians is high, but the amount of available HVAC technicians is low. Reviewing the different financing options to be able to afford the necessary employees is important.
  • Certification: Another major area that many HVAC business owners are investing in is training and certifications for their HVAC technicians, especially with the ongoing regulation changes. These can be expensive up front for all of your HVAC technicians, but many HVAC business owners will see it being a benefit as rules and regulations continue to change in the HVAC industry.

Types of HVAC Business Loans

Types Rates Terms Funding
Bank 6-10% 3-7 years 14-30 days
SBA 6-10% 3-7 years 10-30 days
Line of Credit 5-15% 1 – 3 years 7-30 days
Alternative 6-25% 1-5 years 5-7 days
 Cash Advance 1.16-1.55 3-24 months 1-3 days
Invoice Finance 1-2% weekly 1 – 90 days 1-3 days

HVAC Bank Loans

Traditional bank HVAC financing is the most common and affordable loan option for any HVAC business. Through traditional bank loans and lines of credit for HVAC businesses, low rates and fees with extended terms are offered which is the most ideal scenario for HVAC businesses. However, your HVAC business must have good credit and strong financials to qualify.

  • Rates: 5-10%
  • Terms: 1-25 years


If your HVAC company does not qualify for a traditional bank loan, however you still want decent rates and terms, than the SBA HVAC loan would be the next best option. The difference between SBA and traditional financing is that the Small Business Administration agrees to cover a percentage of the SBA lender’s losses should the HVAC fail to repay.

  • Rates: 6-8%
  • Terms: 3-25 years

Alternative HVAC Loans

Alternative HVAC business loans, such as mid prime loans, is another option for HVAC business owners who do not have stellar credit and are unable to obtain a traditional bank loan. There is much less documentation required for an alternative HVAC business loan as well.

  • Rates: 8-25%
  • 1-5 years

HVAC Equipment Leasing

The HVAC industry revolves around equipment, and to install quality equipment than a HVAC business needs to have quality equipment to use! If your HVAC business cannot afford to update or replace needed equipment, there is always the option of using HVAC equipment financing options.

  • Rates: 6-20%
  • Terms: 1-10 years

HVAC Cash Advance

A merchant cash advance for HVAC businesses are not loans, but instead are the sale of the HVAC businesses future credit card or bank account deposits at a discount in return for upfront quick financing. This type of financing for HVAC business owners does not require great credit or collateral, but this will lead to higher rates and terms.

  • Factor Rates: 16 – 1.50
  • Terms: 3-24 months

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Who We Are

GUD Capital is a nationally recognized leader in the financing industry for providing the best business lending solutions available to small and mid-sized businesses. We leverage our network of 4,000 competing commercial lenders to provide your business the largest selection of commercial financing options.

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