CFACommercial Funding Advisory

Construction & Trades

Business Funding for HVAC Businesses

HVAC companies face a seasonal revenue cycle that makes cash flow management difficult. Summer and winter are peak seasons, but you still need to cover truck payments, insurance, and technician salaries during the slow months. Stocking furnaces, condensers, and parts ties up significant working capital.

Common Uses

What HVAC Businesses Use Funding For

  • Stock inventory on furnaces, air handlers, and condensing units before peak season
  • Purchase or outfit new service vehicles with tool storage and ladder racks
  • Cover technician wages and benefits during slower spring and fall months
  • Invest in EPA-compliant refrigerant recovery equipment and tools

Funding Options

Best Funding Types for HVAC Businesses

Business Line of Credit

Draw funds during slow months and repay during peak season. HVAC businesses benefit from revolving credit because revenue swings are predictable and lenders can underwrite around seasonal patterns.

Equipment Financing

Finance recovery machines, vacuum pumps, and diagnostic equipment. HVAC tools hold their value well, so lenders are comfortable with longer terms and lower down payments.

Revenue-Based Financing

Repayments flex with your monthly revenue, which means you pay less during the slow shoulder seasons and more when service calls are nonstop. This prevents cash crunches in April and October.

What Lenders Look For

Qualification Notes for HVAC Businesses

EPA Section 608 certification and proper state HVAC licensing are baseline requirements most lenders verify
Service agreement revenue from maintenance contracts counts as recurring income, which strengthens your application
Lenders familiar with HVAC will look at your mix of residential versus commercial work to assess revenue stability

Ready to Explore Funding for Your HVAC Businesse Business?

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