The Ultimate Guide to HVAC Financing for HVAC Contractors
The Ultimate Guide to HVAC Financing for HVAC Contractors
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When you offer financing options on the goods and services you provide, you are empowering your customers to help your business grow faster. The costs associated with installing a new HVAC system or repairing an existing heating and cooling system are often unexpected expenses that most homeowners are unable to incur, much less pay for in cash. They may be able to afford the cost, but paying in full is a common barrier to conversion because it’s an expense that was never factored into that month’s household budget. As a result, a necessary repair is put off until a later time or replacing a faulty HVAC unit with an updated model must wait until the customer has the available resources to proceed with the job.
Unfortunately, that puts your HVAC company at a disadvantage. As an experienced HVAC contractor in a crowded service area, you know that when you’re not working, you’re not generating any revenue to help your business thrive. Your customers want to hire you to perform the work they need, but if they have to delay that work because they can’t afford to pay all in one lump sum, giving them an opportunity to remove that obstacle would seem like a natural solution that can benefit both the customer and your HVAC company.
HVAC financing options through Fund My Contract is that solution to help your business boost sales, increase revenue, and improve customer satisfaction.
How Does HVAC Financing Work to Grow Your Business?
When you work with Fund My Contract to offer financing options, our network of third-party lenders can give your customers access to the most innovative and versatile HVAC financing programs in the consumer finance industry. Your business can enjoy the benefits that come with offering financing options to your customers because it removes the common obstacles that prevent homeowners from moving forward with a project.
Instead of paying in full and putting your services out of reach to most customers, you can now make the cost of the work more affordable by splitting up the cost through a payment plan. Making monthly payments on the cost of an HVAC installation puts the customer at ease knowing that he or she doesn’t have to incur such a major expense when money may be a little tight.
If the customer can finance an HVAC repair, they are more willing to greenlight the work on the spot instead of putting it off to a later date that may or may not ever come.
The way it works is rather simple. You select the financing programs you wish to extend to your customers. When one of them approaches you for an estimate on a job, you submit the bid and review the multiple financing options that are available to them. These can range from programs that offer lower monthly payments, a zero interest promotional period (for customers with approved credit), and flexible financing terms that give them more time to make payments on the amount they wish to finance.
Why HVAC Financing Options Can Benefit Your Customers
When your customers want to hire you, financing programs through Fund My Contract can be more effective and affordable than other financing solutions your customer might choose to seek out. Taking out a personal loan or applying for a home equity loan to install a new HVAC system or replace a heat pump may put your customer in a tough financial situation. The monthly payment on a loan amount of that size may force the customer to take on more debt than he or she is prepared to assume.
Credit card interest charges can lead to another high debt situation and your customer shouldn’t have to take out a second mortgage to put in a new air conditioner. Unless the customer has good or excellent credit, interest rates can leave the customer paying a whole lot more for the work than necessary.
The reality is that most homeowners don’t have an emergency fund to tap into when their HVAC systems require unexpected service and replacement parts to get up and running again.
When HVAC companies offer financing options to their clientele, it not only gives the customer more choices for gaining access to the critical services they need to keep their HVAC systems functioning (which is important when the temperatures drop in the winter or rise to dangerously uncomfortable levels in the peak of the summer), but it also helps to make the work more affordable in two ways.
The first is by giving the customer the ability to divide the cost over a series of monthly payments that are easy to fit in with any monthly budget. The second is by helping the customer access financing options that don’t come with additional costs for the privilege of borrowing the amount needed to hire your contracting business to repair or replace a faulty HVAC system. HVAC loans through traditional lending sources such as banks, credit unions, and other online financiers can come with high interest rates, hidden fees, and extra costs that may very well leave your customer paying exponentially more for their HVAC repairs or replacement.
Savvy homeowners will compare interest rates between all of their available lending sources and, chances are, the financing programs you offer will beat the rates that banks and credit card companies offer to their customers.
Giving your customer base options that make the cost of the work easier to cover while spending less to have it done, can also increase customer satisfaction and overall loyalty as happy customers turn into repeat customers. You can bet that new customers are reading your HVAC company’s online reviews and when those potential customers see that you offer financing options, they are far more likely to request cost estimates for the work they need performed on their HVAC systems from your business.
Gain the Competitive Edge with HVAC System Financing Solutions
Working with Fund My Contract to help your customers finance an HVAC system project can put your business ahead of the rest. Attracting the attention of homeowners in a crowded region full of contractors is no easy task. You need to find ways to stand out. Experience, expertise in the field, and quality of the work you offer sometimes aren’t enough as HVAC companies try to undercut each other when it comes to price.
But lowering your rates to compete cuts into your bottom line and failing to maintain your profit margins makes it difficult to grow your business.
There’s a better way to gain the advantage. HVAC financing gives your customers access to the services they want and makes it easier for them to hire your company to perform those services. Better yet, your HVAC company gets paid in full, upfront, even if the customer is making installments on a payment plan. Plus, the funding that customer receives through one of the financing programs you provide can only be spent hiring your business to provide the parts and labor needed for the job. That money cannot be spent with any other contractor or HVAC company in the event the customer changes his or her mind about going through with the job.
The Time to Call is Now
We hope this guide to HVAC financing has helped to inform you about the benefits and advantages of offering financing to your customers. If your HVAC company needs a boost due to a reduction in sales and customers who can’t convert due to cost and affordability, give Fund My Contract a call. One of our HVAC financing experts can give you more information about incorporating financing into your business operations to help your business expand and grow faster than ever before.
Why wait to succeed? Contact Fund My Contract today!
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