When you run an HVAC business, you have to deal with busy summers, slow winters, surprise service calls, and equipment costs that keep going up. Demand goes up when the weather is very hot or very cold, but the off-season can be hard on even the healthiest cash reserves. This is when HVAC business funding becomes very important.
You will learn how specialized financing helps HVAC companies keep their cash flow positive all year long in this guide. We’ll go over the best ways to get funding, explain how to qualify, and talk about trends in the industry that will affect the availability of loans in 2025. You’ll also learn how lenders like ICG Funding are making it easier for HVAC service providers to get the money they need to grow.
What is funding for HVAC businesses?
Funding for HVAC businesses is money that is specifically meant to help companies that install and repair heating, ventilation, and air conditioning systems. These funding options can help with day-to-day costs, buying equipment, paying employees, growing service fleets, or just getting through slow times.
Unlike regular bank loans, HVAC funding programs look at more than just a credit score. They also look at how well the business is doing, how much money it makes, and how much cash it will have in the future. That makes them perfect for businesses that offer services that change with the seasons.
Benefits of This Type of Financing Funding that focuses on HVAC has a number of real-world benefits:
- Keeps cash flow steady during slow months or shoulder seasons.
- Funds upgrades to equipment without using up working capital.
- Helps with hiring new people, expanding the fleet, or running marketing campaigns.
- Gives you quick access to money, usually within 24 to 48 hours.
- Payment plans that can change to fit the cycles of HVAC revenue.
- Helps take advantage of growth opportunities, like bigger commercial installations.
- Lets business owners talk about bulk prices for parts and stock.
- Best Ways to Get Money for HVAC Businesses
Here are the best ways for HVAC companies to get funding in 2025.
For each one, you’ll find out how it works, who should apply, the pros and cons, and the usual terms.
1. Loans for Working Capital
These loans are designed to improve cash flow and cover everyday expenses.
Best for: HVAC companies that see changes in business during certain times of the year.
Pros: Quick approval, easy to use, and payments that are easy to predict.
Disadvantages: The terms are shorter than those of bank loans.
Most of the time, the terms are 6 to 24 months.
2. Funding Based on Revenue
Payments change based on your monthly income, which makes this a great choice for HVAC seasonality.
Best for: Businesses that make money all year but have margins that change.
Pros: Low friction, no collateral, and payments based on performance.
Cons: It can cost more during months when sales are high.
Terms: Collection caps vs. fixed interest rates.
3. Loans from the SBA 7(a)
Loans backed by the government with great rates and long repayment terms.
Best for: HVAC companies that are already doing well and want to grow or buy more.
Pros: Low APR and terms that can last up to 25 years.
Disadvantages: Slow approval and a lot of paperwork.
Requirements: A credit score of at least 500 if you apply with ICG Funding and at least two years in business.
4. Financing for Equipment
Great for replacing or upgrading HVAC units, work trucks, duct machines, or tools for business.
Best for: Buying expensive tools.
Pros: Equipment can be used as collateral and keeps cash safe.
Disadvantages: Only for buying equipment.
Usually, the terms are 2 to 7 years.
5. Merchant Cash Advances (MCAs)
A quick cash infusion that can be paid back through daily or weekly withdrawals.
Best for: When you need money right away, for emergency repairs, or when you suddenly run out of stock.
Pros: Quick approval.
Cons: It’s expensive and the repayment periods are shorter.
Terms: Factor-rate pricing, not APR.
6. A line of credit for a business
With revolving credit, you can get money whenever you need it.
Best for: Dealing with unexpected drops in income.
Pros: You only have to pay interest on what you use; it’s flexible.
Cons: Needs to be in good financial shape.
Terms: Credit limits that change based on income.
7. Factoring invoices
Selling unpaid invoices is a quick way to get cash.
Best for: HVAC contractors who work on businesses and have clients who pay slowly.
Pros: No debt and cash right away.
Cons: Fees lower the value of the invoice.
Terms: Usually between 1% and 5% a month.
How to Get HVAC Funding
Lenders usually look at the following, even though requirements vary:
Score on Credit
500 or more is what ICG Funding needs.
How long you’ve been in business
A lot of lenders want at least 1 year, but SBA loans usually need two or more years
Paperwork for Business
Be ready to give:
Recent bank statements
2025 Trends in the HVAC Industry That Affect Business Financing
2025 is a big year for both the HVAC market and the financing market. Important trends are:
1. More and more people want HVAC systems that use less energy.
As federal and state energy rules get stricter, homeowners and businesses are quickly upgrading their old systems. To meet demand, a lot of HVAC companies are using equipment financing.
2. Higher interest rates, but options that are more flexible
Even though borrowing costs are still high, lenders are helping service businesses that are affected by seasonality by offering revenue-based programs and performance-linked repayment models.
3. The rise of lending through fintech
Non-bank lenders are now the main source of financing for small businesses. They offer: Faster approvals
- Underwriting with a soft pull
- Making loan decisions based on income data, not credit scores
4. More consolidation in the HVAC market
More HVAC companies are buying their competitors or growing into new counties. This has made more people want to get SBA loans and financing for acquisitions.
How to Pick the Best Way to Get Money
Here’s how HVAC owners can make a good choice:
- Look at the Total Cost of Capital
- Don’t just look at the interest rate. To find out the real cost, use:
Find a lender who knows about HVAC systems.
For instance, ICG Funding knows how HVAC sales change with the seasons and can give you flexible terms that fit your business.
Last Words of Advice for HVAC Business Owners
- Even during slow times, keep making regular monthly deposits.
- Don’t wait until you need money to use it.
- Choose the right funding structure to keep your debt under control.
- Keep an eye on your KPIs, which are the number of jobs, service agreements, and regular maintenance plans.
- Before you need money, get to know a lender
Frequently asked questions
What is the easiest way for HVAC businesses to get money?
Loans for working capital and financing based on revenue are usually the easiest to get because they don’t look at credit scores.
Is it possible for HVAC companies to get money even if they have bad credit?
Yes. For options like MCAs or revenue-based funding, you need a lower credit score, sometimes as low as 500–550.
What’s the best way to pay for HVAC equipment?
Equipment financing has fixed payments, low rates, and longer terms. The equipment itself is the security.
How quickly can HVAC companies get money?
ICG Funding and some other lenders will approve your loan in a matter of hours and give you the money in 24 to 48 hours.
In conclusion
HVAC companies have predictable seasonal changes in their income, but the right funding plan can keep cash flow steady all year. HVAC owners can get loans from the SBA or revenue-based funding to buy new equipment, hire more people, cover slow months, and take advantage of growth opportunities.
ICG Funding has customized financing options that are HVAC-friendly and flexible, so service companies can do well no matter what time of year it is.
