6 Best HVAC Business Financing Options for Business Owners

Starting or growing an HVAC business requires capital—sometimes a lot of it. Whether you're just getting off the ground, looking to expand your service area, or need help covering unexpected expenses during slow seasons, the right financing can make all the difference.

Startup costs for a new HVAC business can range from $2,000 to $12,000 for smaller operations to as much as $100,000 or more if you're purchasing vehicles, specialized equipment, and inventory upfront. Even established businesses face ongoing financial needs to replace aging trucks and equipment, expand their team or marketing, or simply manage cash flow throughout the year.

The question is: Which financial option makes the most sense for your business? (And how do you actually qualify for it?)

At Therapeutic Tax Solutions, we help our clients prepare for success with clean books and a clear understanding of their numbers. 

Below, we'll walk you through the best HVAC business financing options, what lenders look for when reviewing applications, and how to choose the right funding solution for your company's needs.

6 Best HVAC Business Financing Options

Not all HVAC business financing solutions are created equal. The right option for your HVAC business depends on what you need the money for, how quickly you need it, and what you can realistically afford to repay.

1. SBA 7(a) Loans

Best For: Investing in Business Growth

SBA 7(a) loans offer low interest rates and longer repayment terms, making them a solid option for HVAC businesses looking to scale. 

These loans are backed by the Small Business Administration, which reduces risk for lenders and makes them more willing to approve applicants who might not qualify for traditional bank loans. You can borrow up to $5 million, and approval takes 2-3 months on average, depending on the lender. You can use Lender Match to find lenders who offer SBA loans.

Typically used for: 

• Expanding your fleet

• Hiring employees

• Marketing

• Acquiring another HVAC company

• Purchasing real estate

• Covering working capital needs

Why it works for HVAC contractors: If you're planning a major investment, SBA loans offer some of the best terms available. The tradeoff is a longer approval process and more stringent documentation requirements, so you'll need patience and organized financials.

2. Working Capital Loans

Best For: Short-term Needs or Day-to-day Expenses

Working capital loans help you cover day-to-day operating expenses and short-term financial gaps. Banks and credit unions offer these with competitive rates, though approval standards can be high.

Typically used for: 

• Payroll

• Rent

• Utilities

• Inventor

• Other operational costs during slower periods

Why it works for HVAC contractors: If you're facing a temporary cash flow crunch but your business fundamentals are strong, a working capital loan can tide you over until your revenue stabilizes. These loans work best for businesses with a proven track record and solid credit.

3. Equipment Financing

Best For: Purchasing Trucks, Tools, and Machinery

Equipment financing is ideal for HVAC-specific tools, service vehicles, diagnostic equipment, and other similar assets. The equipment itself serves as collateral, and rates tend to be lower than other types of loans. You can borrow from online lenders or traditional banks and get approved as quickly as a couple of days to a couple of weeks.

Typically used for: 

• Service vans and trucks

• HVAC diagnostic tools

• Compressors

• Lifts

• Installation equipment

• Specialized machinery

Why it works for HVAC contractors: If you need to replace a broken truck or upgrade to newer equipment, equipment financing preserves your cash flow while giving you immediate access to the tools you need to keep working. Because the equipment you're buying is collateral, you can typically secure decent rates even if your business is relatively new.

4. Term Loans

Best For: Predictable Repayment Terms and Clear Goals

A term loan provides a lump sum of capital that's repaid over a fixed period. It's best for larger, one-time investments in your business and can be used for a wide range of purposes. You can obtain these loans from online lenders or traditional banks and get approved within a few days to a few weeks.

Typically used for: 

• Office or warehouse buildouts

• Expanding your team

• Bulk inventory purchases

• Major repairs

Why it works for HVAC contractors: Term loans give you predictable monthly payments and a clear payoff date, which makes budgeting easier. They're a good fit if you have a specific project in mind and need a significant amount of capital all at once.

5. Business Line of Credit

Best For: Flexibility and a Seasonal Safety Net

Think of a business line of credit like a safety net for your cash flow. You're approved for a maximum amount, and you can borrow what you need when you need it. Interest only applies to what you actually use, not the full credit limit—which makes it perfect for handling seasonal revenue fluctuations.

Typically used for: 

• Covering payroll during slow months

• Handling unexpected expenses or repairs

• Bridging gaps between invoicing and payment

Why it works for HVAC contractors: HVAC is a seasonal business, and revenue can swing dramatically between summer and winter. A line of credit gives you the flexibility to cover expenses when business is slow and pay it back when things pick up. You're not locked into a rigid payment schedule, and you're not paying interest on funds you're not using.

6. Business Credit Cards

Best For: Everyday Expenses and Convenience

Business credit cards can cover small day-to-day expenses, marketing costs, and short-term cash flow gaps. Many cards also offer cashback and rewards that benefit HVAC business owners.

Typically used for: 

• Fuel

• Small parts and supplies

• Meals on the road

• Software subscriptions

• Emergency purchases

Why it works for HVAC contractors: Business credit cards are fast and convenient—you can use them immediately without waiting for loan approval. Just be mindful of high interest rates. If you pay your balance in full each month, you won't incur interest charges, and you'll build business credit in the process.

How To Qualify for HVAC Business Financing

Getting approved for HVAC business financing depends on several factors. Lenders want to see that you're creditworthy, financially stable, and capable of repaying your loan.

Here's what most lenders evaluate:

Your Credit Score

Good personal and business credit is a big factor in your ability to qualify for lending and benefit from favorable terms. Higher scores typically unlock better interest rates and terms. Traditional banks tend to be more conservative and often want borrowers to have credit scores of at least 680. Some lenders will work with applicants with lower scores if they have other factors working in their favor in their application.

Your Annual Revenue and Profitability

Lenders need evidence that you’ll be able to repay your loan. That means they’re looking for at least a certain amount of revenue each year (minimums typically range from $100,000 to $250,000) and that you have consistent cash flow and strong profitability.

Time in Business

While newer business owners can absolutely secure certain types of financing, established HVAC companies—those who have been in business at least a year or two—will have an easier time qualifying.

A Strong Business Plan

For those just starting out—and for existing HVAC business owners—a thorough and persuasive business plan can support a successful financing application. 

Clean, Accurate Books

Here's where things get critical: lenders scrutinize your financial statements closely. If your books are disorganized, incomplete, or inaccurate, you'll struggle to get approved, or you'll end up with higher rates and less-than-ideal terms.

Even HVAC contractors with successful businesses get rejected for financing because their financial records don't paint a clear picture. Lenders need to see well-organized profit and loss statements, balance sheets, and cash flow projections that prove your ability to repay. If you can't produce those documents, or if the numbers raise red flags, approval isn't happening.

At Therapeutic Tax Solutions, we help our HVAC clients clean up their books, organize their financials, and prepare the documentation lenders require. When your books are accurate and current, you have a better chance of getting approved, receiving the funds you need, and sustaining and growing your business.

See also: How to Clean Up Your HVAC Business Bookkeeping for 2025

Therapeutic Tax Solutions - We Help HVAC Contractors Get Loan-Ready and Approved With Confidence

Most HVAC owners don’t get denied funding because their business is weak.

They get denied because their finances don’t tell the right story.

Lenders want clarity, consistency, and clean documentation — not guesswork, missing numbers, or reports that don’t match your reality. And even profitable HVAC companies get rejected when their books are disorganized or incomplete.

Here’s how we help HVAC contractors prepare for financing the right way:

✓ Clean, accurate bookkeeping that gives lenders the confidence they need

✓ Organized financial statements ready to submit

✓ Job costing and profitability insights that prove your business is performing well

✓ Cash flow forecasting that shows lenders you can handle repayment (even during slow seasons)

✓ Guidance on which financing options make sense for your goals

✓ Support throughout the application process so you’re never guessing what to provide

When your financials are clear and lender-ready, you get better approval odds, better rates, and a lot less stress.

If you’re planning to apply for financing, whether it’s an SBA loan, equipment financing, or a line of credit, we’ll help you present your business in its strongest light.

How To Apply for HVAC Business Financing

Before you apply for financing, it’s important to get your books and documents in order. Clean books and up-to-date information will increase your likelihood of qualifying for a loan or line of credit.

Here’s what you’ll need to have prepared for most lenders:

• Bank statements: Usually, the most recent 3 to 6 months

• Tax returns: Both personal and business tax returns from the past 1 to 2 years

• Profit and loss statement: A breakdown of your revenue and expenses to show financial performance

• Balance sheet: A snapshot of your assets, liabilities, and equity

• Equipment invoices or quotes: If you're applying for equipment financing, include pricing or specifications

• Business license and certifications: Proof that your HVAC business is licensed and in compliance with local and state requirements

• Personal identification: A government-issued ID, such as a driver's license

Depending on the lender, you may also be asked for proof of insurance, contracts with clients, or a business plan. Having these materials prepared upfront will speed up the application process and improve your approval chances.

How To Choose the Right Financing for Your HVAC Business

Even though you may need capital to grow or start your business, don’t simply choose the first lender who will approve you. Choose the option that fits your business needs and financial situation. 

Here are some factors to consider when applying for HVAC business financing:

Determine What You Need the Money For

Are you hiring to support growth? Covering the cost of inventory, materials, or a new truck? Trying to manage fluctuating cash flow during slow seasons? Different financing options suit different needs and goals. Equipment financing makes sense for big purchases, while a line of credit is better for managing seasonal ups and downs.

Consider Your Timeline

If you need capital immediately—like replacing a broken truck that's sitting in your shop—consider equipment financing or online lenders, which tend to get you funded faster. If you're planning a major expansion six months from now, an SBA loan may be a better bet. Just start the process early.

Evaluate Total Cost, Not Just Monthly Payments

Look beyond the monthly payment and consider the total cost of the loan, including interest, fees, and any prepayment penalties. A loan with a lower monthly payment might cost you more in the long run if it has a high interest rate or hidden fees.

Shop Around and Compare Offers

Don't settle for the first offer you receive. Get quotes from multiple lenders—traditional banks, credit unions, and online lenders—and compare the rates, terms, and fees. Typically, you can see if you prequalify with a lender without it impacting your credit.

Read the Fine Print

Make sure you understand the repayment terms and what happens if you miss a payment or pay late. Some lenders charge steep penalties or require balloon payments at the end of the term. Know what you're signing up for before you commit.

FAQs

Can I Get Financing if My HVAC Business Is New?

Yes, but your options are more limited. Equipment financing is one of the most accessible options for newer businesses because the equipment serves as collateral, which reduces risk for lenders. 

Alternative lenders also tend to be more flexible with startups than traditional banks. If you've been in business for less than a year, focus on building a strong business plan, maintaining good personal credit, and keeping your books organized to improve your chances of approval.

Can I Get HVAC Financing with Bad Credit?

It's harder, but not impossible. Traditional banks typically require credit scores of 680 or higher, but many alternative and online lenders will work with borrowers who have lower credit scores. Just expect higher interest rates and shorter repayment terms. Work on improving your credit over time by paying bills on time, reducing debt, and keeping your credit usage low.

How Long Does It Take to Get HVAC Business Financing?

It depends on the type of financing and the lender. Online lenders offering equipment financing or working capital loans can approve and fund loans in as little as a couple of days. Traditional bank loans typically take a few weeks. 

SBA loans have the longest timeline—usually 60 to 90 days—because of the documentation and approval process involved. If you need funding fast, prioritize lenders with quick turnaround times, but be prepared for potentially higher rates.

Do I Need Collateral for an HVAC Business Loan?

It depends on the loan type. Equipment financing uses the equipment you're purchasing as collateral, which is why it's often easier to qualify for. 

SBA loans and traditional term loans may require collateral such as business assets, vehicles, or even personal assets like your home. Unsecured loans—like some lines of credit or business credit cards—don't require collateral, but they typically come with higher interest rates and stricter approval requirements.

Is Equipment Financing a Good Option for HVAC Businesses?

Absolutely. Equipment financing is one of the best options for HVAC contractors because it's designed for exactly what you need—trucks, tools, diagnostic equipment, and specialized machinery. 

The equipment serves as collateral, so you can often secure favorable rates even if your business is relatively new or your credit isn't perfect. It also preserves your cash flow by allowing you to spread payments over time instead of paying thousands upfront. Just make sure the repayment term aligns with the useful life of the equipment so you're not paying for tools after they're worn out.

The Bottom Line

Securing the right financing can help you grow your HVAC business, weather seasonal cash flow challenges, and invest in the tools and people you need to succeed. But getting approved starts with having your financial house in order.

Lenders want to see clean, accurate books that demonstrate your profitability and ability to repay. Without organized financial records, even strong businesses can get turned down—or stuck with unfavorable terms.

Therapeutic Tax Solutions specializes in working with HVAC contractors. We help you clean up your books, prepare the financial documentation lenders require, and position your business for approval. Whether you're applying for equipment financing, an SBA loan, or a line of credit, we'll make sure your finances tell the right story.

Learn more about our services or get in touch!