Table of Contents
- How HVAC businesses can secure financing
- Options for HVAC business financing
- How to choose the right option for commercial HVAC financing
- Keep business growing with leading HVAC business financing solutions
Running an HVAC company means more than keeping heating and cooling systems in check. You need to keep your finances steady, too. HVAC business loans and financing play such a critical role in keeping HVAC businesses competitive.
| “Reliable funding gives you the ability to take on larger projects, invest in better tools, and keep operations steady even when customer payments are delayed or demand slows down,” Credibly Founder and co-CEO Ryan Rosett said. |
“Plus, with 116,000 contractors generating nearly $160 billion in revenue, the right financing can help your business stand out and scale.”
The good news is that HVAC contractors have multiple financing options designed to meet these exact needs.
In this blog, we’ll walk through what HVAC business loans are, how to determine which type is best for your situation, and the steps you can take to qualify.
How HVAC businesses can secure financing
Before you apply for HVAC financing, it’s important to know what you need and how lenders will evaluate your application.
Clear funding goals and meeting key eligibility factors such as credit, revenue, and cash flow can position your business for faster approval and better financing terms, especially with finance companies that serve HVAC contractors.
Define what you need
Start by zeroing in on how much money your business requires and why. Having a clear plan helps you find the right financing option and makes the application process smoother.
| Tip: If you run a small residential HVAC business, you will likely need up to $40,000 for essentials like a vehicle and diagnostic equipment. |
Typical funding needs for HVAC contractors include:
- Equipment: Invest in diagnostic tools, lifts, or installation gear that keeps jobs moving efficiently.
- Inventory: Stock up on furnaces, AC units, and replacement parts before peak demand hits.
- Vehicles: Add or replace service vans without pulling cash from daily operations.
- Staffing: Cover payroll when bringing new techs or office staff onboard.
When you know exactly where the money will go, you’ll be better positioned to choose the financing that fits.
Review your eligibility
Every lender has benchmarks they check before approving HVAC financing. Preparing in advance helps you avoid surprises and improves your chances.
Key factors include:
- Credit profile: Both business and personal scores matter. Higher scores typically mean better terms, but many fintech lenders look at the whole picture, not just a number.
- Time in business: Most providers prefer 1–2 years of operating history, though some options are available for newer companies with strong income streams.
- Revenue: Annual revenue requirements vary, but lenders want proof you can handle ongoing remittances.
- Cash flow: Consistent, positive cash flow shows you can cover financing even during slower months.
- Collateral: Certain products may require assets like vehicles or equipment as security, which can also help lower rates.
| Learn how to make the most out of your financing options: |
Options for HVAC business financing
Every HVAC company has different financial pressures, whether you’re replacing equipment, adding technicians, or riding out seasonal slowdowns. The right funding option depends on your goals and how you plan to use the money.
Here are the most common choices for financing for HVAC companies.
1. Equipment financing
When you need to upgrade tools, vehicles, or systems, paying out of pocket can strain your cash flow. Equipment financing allows you to get what you need right away and spread the cost across manageable installments. The equipment itself often secures the loan, making it easier to qualify.
How it helps you:
- Replace aging vans with a newer fleet that’s more reliable and fuel-efficient.
- Invest in advanced diagnostic tools, compressors, and lifts to improve service quality.
- Add installation equipment to take on bigger or more complex jobs.
2. SBA 7(a) loans
Backed by the Small Business Administration, SBA 7(a) loans offer some of the most favorable rates and longest repayment terms available to HVAC contractors. While the application process is more detailed than other products, the payoff is stability and affordability.
How it helps you:
- Secure real estate to build a new office or expand your warehouse.
- Cover large equipment purchases with up to 10 years to repay.
- Refinance existing debt into a lower-cost option that frees up cash.
- Support working capital, from payroll to fleet expansion.
3. Term loans
When you need a set amount of money for a specific purpose, a term loan gives you quick access to a lump sum with a clear repayment schedule. With terms that usually run between 1 and 10 years, you’ll know exactly how much you owe each month. This predictability makes it easier to plan ahead.
How it helps you:
- Fund office renovations or warehouse buildouts.
- Launch a large-scale marketing campaign to dominate your local market.
- Purchase inventory in bulk ahead of peak season.
- Invest in new software tools to streamline scheduling, invoicing, or customer management.
4. Business line of credit
A business line of credit is one of the most flexible HVAC service business financing options available. Instead of borrowing a fixed amount, you’re approved for a credit limit that you can draw from as needed. You only pay interest on what you use, and as you repay, your available balance replenishes. This makes it ideal for HVAC contractors managing the ups and downs of seasonal demand.
How it helps you:
- Smooth cash flow when customer payments are delayed.
- Cover payroll during slow months.
- Pay for fuel, parts, or emergency repairs without touching your reserves.
- Take on unexpected projects without worrying about immediate cash.
How to choose the right option for commercial HVAC financing
Not every HVAC company has the same financial priorities. The right funding depends on your goals, cash flow, and growth plans. By matching your needs with the right product, you’ll avoid overpaying and keep your business running smoothly.
| Financing option | Best for | Key benefits |
| Equipment financing | Upgrading vans, tools, or installation gear | Spread costs over time, keep cash reserves free for daily operations |
| SBA 7(a) loan | Large investments like property, acquisitions, or refinancing debt | Longer terms, lower rates, flexible uses |
| Term loan | One-time projects such as renovations, bulk inventory, or software | Lump sum upfront, predictable repayment schedule |
| Business line of credit | Managing seasonal cash flow, covering payroll, or handling surprises | Draw funds as needed, only pay interest on what you use, revolving balance |
Once you’ve identified the financing option that fits your goals, the next step is finding a provider that makes the process simple and stress-free. That’s where Credibly comes in.
