Finder makes money from featured partners, but editorial opinions are our own. Advertiser Disclosure

Compare business loans for HVAC companies

Get the newest tubing cutter or expand your business with financing that fits your HVAC company.

Editor's choice: OnDeck business lines of credit

  • Business loan amounts up to $250k
  • Repayment terms up to 18 months
  • $100k in annual revenue required
Go to site

HVAC work is highly skilled, and your training has undoubtedly paid off in the form of a fulfilling career. But there’s always room for improvement.

Shifting from contractor to business owner or growing your existing HVAC business can take time and cash to get going. We cover your options, what’s necessary to apply and tips to succeed as a small business among big-name competitors.

What loan options should I consider for my HVAC company?

You could get just about any type of business loan as long as you meet the eligibility requirements. Here are four specific loan types that might be most beneficial for an HVAC company due to their features:

  1. Equipment financing. Expensive equipment, like a new truck to get to your jobs, can potentially act as collateral for the loan you need to purchase it. You can think of equipment financing like a typical car loan: You generally get a better rate when there’s something to minimize the risk that comes with lending money. This one is just specific to the industry equipment you need, instead of a new hatchback for your family.
  2. Invoice factoring. Have accounts receivables? You may be able to sell them at a discount to a third party. The transaction is completed when your client pays their open invoice and the funds go to the party you sold to. Invoice factoring often doesn’t require a credit check, which can be useful if you’re just transferring over from independent contractor to business owner.
  3. Small Business Administration (SBA) loans. Should you qualify as a small business by federal standards, an SBA loan could get you a better rate than a general purpose loan. SBA loans are guaranteed up to a specified amount by the government, which reduces the risk for lenders. Know that while you could potentially borrow a large amount, SBA loans are government issued and move at the same slow pace most other government processes do.
  4. Business lines of credit. If you don’t mind not having the rewards options, a business line of credit can function similarly to a credit card. Generally, the APR offered for a business line of credit is better than that of a credit card, and some come with promotional 0% APR periods too.

5 factors to look for when comparing loan offers

When you’re reviewing the different types of loans and lenders, make sure to pay attention to the following:

  • Loan amount. It’s wise to get a loan that isn’t far from the amount that you actually need. Overspending is a big risk when it comes to having more funding than you need, and having less than you need can mean winding up with multiple sources of debt instead of just one.
  • Loan term. A longer term has the benefit of lower monthly payments but can result in a higher cost overall. Be sure to look at more than just what gets you the smallest cost each month.
  • Interest rate. One of the clearest indicators of your overall cost is going to be the interest rate you’re charged. Make sure you carefully weigh it against the other factors presented and request the APR when available.
  • Eligibility. Narrow down your choices easily by looking at what you can actually qualify for. Prequalification standards like time in business and annual revenue can slim down your search.
  • Fees and charges. Not all lenders are forthcoming about all of the charges that can be added to the cost of your financing. Make sure to ask about any additional costs outside of the interest rate.

Compare business financing options from top providers

Name Product Filter Values Loan amount APR Requirements
Biz2Credit business loans
Finder Rating: 4.7 / 5: ★★★★★
Biz2Credit business loans
$25,000 – $6,000,000
Starting at 5.99%
6+ months in business; $100,000+ monthly revenue; 500+ credit score
Get only the capital you need through secure, prescreened lenders with this highly rated company offering SBA, expansion, working capital and other loans.
Lendio business loans
Finder Rating: 4.75 / 5: ★★★★★
Lendio business loans
$500 – $5,000,000
Starting at 6%
Operate business in US or Canada, have a business bank account, 560+ personal credit score
Submit one simple application to potentially get offers from a network of over 300 legit business lenders.
ROK Financial business loans
Finder Rating: 4.7 / 5: ★★★★★
ROK Financial business loans
$10,000 – $5,000,000
Starting at 6%
Eligibility criteria 3+ months in business, $15,000+ in monthly gross sales or $180,000+ in annual sales
A connection service for all types of businesses — even startups.
OnDeck short-term loans
Finder Rating: 4.6 / 5: ★★★★★
OnDeck short-term loans
$5,000 – $250,000
As low as 35%
600+ personal credit score, 1 year in business, $100,000+ annual revenue, active business checking account
A leading online business lender offering flexible financing at competitive fixed rates.
Fundbox lines of credit
Finder Rating: 4.2 / 5: ★★★★★
Fundbox lines of credit
$1,000 – $150,000
Not stated
6 + months in business, $100,000+ in annual revenue, 600+ credit score
Get flat rate, short-term financing based on the financial health of your business, not your credit score.

Compare up to 4 providers

What do I need to apply?

Depending on the lender you approach and the whole of your needs, you may need more or less documentation.

  • Relevant licenses. It may be necessary to provide proof that you’re certified to do heating, ventilation and air conditioning work in your area. Make sure to keep copies of up-to-date licenses.
  • Personal documents. Some lenders will consider your personal credit as well as your business finances. In such cases, you may need to present personal bank statements. You’ll also want to have state or government-issued ID, such as a driver’s license or passport.
  • A business plan. Lenders are always looking to minimize risk. Approaching with a thought-out business plan presents a much safer image, and shows that you’re looking to run a successful business.
  • Proof of income. Lenders may also look at your business revenue and personal income when considering business financing. Ready your previous year’s taxes, business and personal bank statements.

4 tips on getting financing for your HVAC company

  1. Review qualifications before applying. First making sure your business meets minimum eligibility can save you a lot of time. If it doesn’t and you’re set on working with that lender, it may be time to make an appointment and discuss your case before fully applying.
  2. Make sure your business plan shines. Show that you know what you’re doing, and show it on paper. A well-crafted business plan can really make an impact on a lender.
  3. Have the experience to back your plan. Keep a detailed record of your experience as an HVAC professional, including your training and other locations you’ve been licensed in.
  4. Keep data on your revenue. Show what you’re doing through easily consumable data. Show how the loan will factor into you existing business through a chart. Remember that you’re looking to increase trust with the lender, and transparency can help.

6 tips to beat out your big-time HVAC competitors

  1. Treat every job like your reputation depends on it. Be kind, courteous and on time to the best of your ability. Clearly communicate any change in timing or potential costs. If you have contractors performing on-the-site services, be sure they’re representing your company with professionalism.
  2. Know your work and revenue before you grow. It can be tempting to expand full-throttle when you have the chance, but make sure your business will keep up with that growth throughout the year. Account for seasonal lulls to avoid ending up with too many employees and too few jobs.
  3. Don’t be shy about encouraging reviews. When you invest time into directing people toward review sites you’ve registered with, like Yelp or Google, you can grow your reputation. It’s good marketing that costs you little more than a friendly smile.
  4. Know your product and services. Talk to your customers about their options. Give professional recommendations backed by experience. But also listen to your customers’ wants, framing your pitch with them in mind.
  5. Build trust in your community. Big names are recognizable, but they aren’t always personal. Building goodwill earns respect that can lead to both recognizing your name and knowing that your HVAC comes from someone good within the community.
  6. Keep competitive rates. Even if you can’t match the leading competitor, getting close and staying true to your community can help customers see your business as friendlier and reliable, with the bonus of fair prices.

Bottom line

You’ve got a plan on lock. Now it’s time to follow through and take your HVAC business forward. To best prepare for success, address potential pain points ahead of applying for financing.

When ready, compare your options carefully and ask questions as they arise to get the best deal you’re eligible for.

Frequently asked questions

More guides on Finder

Ask an Expert

You are about to post a question on

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

By submitting your comment or question, you agree to our Privacy and Cookies Policy and Terms of Use.

Questions and responses on are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.
Go to site