Should My Business Offer HVAC Financing Options?


HVAC businesses are missing out on sales if they’re not offering financing options to their customers. HVAC financing options increase closed sales by 10% and installation tickets by 25%, according to one report. 

Offering financing allows consumers who don’t have the money to replace an HVAC system a means of affording a replacement. 

How HVAC Financing Increases Sales 

Financing drives sales, and most major retailers and service businesses offer financing of some kind to their consumers so that sales are easier to close. Your business will be able to reach and convert more consumers when you offer them a means to pay for a $4,800 installation over the course of a year or two – or more. 

Second-look financing options allow for the closing of 25% to 50% of borrowers that couldn’t be approved due to credit reasons. 

The urgency of heating and cooling demands immediate action from the consumer, and financing bridges the financial gap most consumers have when their HVAC system needs replacement. 

HVAC financing allows your business to: 

  • Retain more customers 
  • Close more sales 

You don’t have to take on any additional responsibilities when offering HVAC financing options. The lender takes care of the payment terms, credit checks, and takes on the risk while you do what you do best: install and maintain HVAC systems. 

If you add the option to finance to your HVAC sales proposal generator or estimates, you’ll alert customers to your HVAC financing options early on in the sales process. 

Does HVAC Financing Make Sense for Professionals? 

HVAC businesses that are just opening their doors or deal with more maintenance than installs may not find financing to be a viable option. Depending on the lender you choose to work with, you may need to meet: 

  • Minimum monthly sales requirements 
  • Minimum transaction sizes 

Transaction Size

Transaction size will be key in determining if you should offer financing. Since you’ll have to pay a fee to the lender, it won’t make sense to offer financing for low-ticket services, such as routine maintenance or repairs. 

But if you deal with multiple installs per month and have lost customers due to not offering financing, providing the option to finance your service will close more sales. 

Explaining HVAC Financing to Customers

You’ll also have to promote the financing option in a way that customers understand. Be upfront and honest with your customers and explain that approval is not guaranteed. There’s always a chance that first-tier and second-tier lenders will not approve a customer. 

In this case, you may lose a sale, but the customer will know that your business worked diligently to find a financial solution that allowed them to use your services. 

For most HVAC businesses, financing does make sense because replacement or installation with ductwork are both major expenses. 

How HVAC Businesses are Paid When Financing 

Financing doesn’t impact business cash flow. Lenders will discuss a plan and fee structure tailored to your business with you. Once a credit decision is made and the consumer is approved for financing, you may receive your money in as little as one day. 

The lender takes on the risk and you’re paid for the service that your customer is financing. 

The Logistics

Integration of a financing plan into your business’s operations is often fast and easy, depending on the financing company you choose. A lot of financing companies offer mobile applications. Walk customers through and they’ll be approved or not approved within minutes. Some lenders will also include calling options that walk customers through the application process. 

Your money arrives fast. Your customers are happy. Everyone wins with financing options. 

If your business is looking for HVAC sales software that integrates an HVAC sales proposal generator, service tickets, ESS wizard, support, and other key features, HVAC Biz Pro software offers a specialized solution for HVAC industry professionals. 

Click here to schedule a free demo today.