I imagine you’re here because you’re interested in the loans you should consider as an HVAC contractor. Perhaps you’re starting a business or you already have one and you’re thinking about expansion. Reasons aside, you’re researching because you need financial assistance.
As an HVAC contractor, there are plenty of reasons you may not have the finances you need. There are expenses such as storage, transportation, supplies, tools, equipment, and potential real estate.
And there will definitely be a few of you who have all their finances organized, but for those of you who don’t, you’ll need assistance. Fortunately for you, there are dozens of loan options out there when it comes to financing HVAC contractors.
Loans you should consider as an HVAC contractor
- Startup loans
- SBA loans
- Business lines of credit
- Equipment loans
- How to qualify for loans
- how Finance Factory helps HVAC contractors
Consider a startup loan as an HVAC contractor
Startup loans provide unsecured personal and business funding (no collateral) for up to $350,000. You must have one guarantor with a credit score between 680 and 800– with the ideal being 660+. There are 0% interest rates for up to 21 months.
Consider an SBA (Small Business Administration) Loan as an HVAC contractor
You must have an existing business with tax returns proving good cash flow. The interest rates are 6% – 8% and have payback terms ranging 10 – 25 years. SBA loans are reviewed anywhere between 2 weeks and 2 months (14 – 60 days), but offer the most financial assistance with the best interest rates.
Important Note: SBA loans are government funds, so alternative financial institutions must be certified to provide them as an option.
Consider a Business Lines of Credit as an HVAC contractor
Business express loans are non-SBA, offer lines of credit up to $500,000, and will get you funded in as a little as 1 – 2 weeks. However, you must have an established business with revenue. Interest rate and loan terms will vary.
Important Note: Business Lines of Credit require interest payments on credit used and not the total credit available.
Consider an Equipment Loan as an HVAC contractor
Equipment loans are incredibly easy to obtain, qualify for, and are used for equipment ranging from trucks, computers, tools, storage, supplies, and so on. As for why equipment loans are the easiest to obtain, the equipment is the collateral and loan amounts, terms, and interest rates vary based on individual credit.
The Three Cs when looking at loans to consider as an HVAC contractor
To determine whether you’re qualified, Finance Factory looks at the Three Cs: Credit, Cash flow, and Collateral. They’ll look at any credit between 680 – 800, a minimum account balance of $1,000 – $5,000 for monthly cash flow (but also look at annual revenue), and will accept collateral as an option. However, You only need one of the three Cs to qualify for a loan – meaning as long as you fit the credit and cash flow qualifications, you will be able to get an unsecured loan.
Finance Factory helps HVAC contractors find the loans they need
Interested in finding funding for your business? Finance Factory would love to help! If you’re looking to fund your business within the next 30 to 90 days for $25,000 to $500,00 and have a credit score of 660 or better, let’s chat! Get pre-qualified right now with our quick-step pre-qualification form! And don’t worry, this will not result in a hard credit inquiry of sensitive information. We just want to learn more about you and your business. Click below to get started!
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