How HVAC Financing Can Transform Your Business Operations
Published August 13, 2024
How HVAC Financing Can Transform Your Business Operations
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Every small business owner is looking for an advantage to succeed in the marketplace. When it comes to HVAC equipment, your expertise and experience in the field has earned you a sterling reputation among the local HVAC companies in your area. But as a business owner, you realize it takes more than just a deep and abiding knowledge of how to repair a central air conditioner or flush an entire hvac system. Most of the other HVAC contractors competing for customers in your region have these skills, they know the in’s and out’s of a heating system and, just like you, offer their customers advice on how to reduce energy consumption and increase energy efficiency through HVAC optimization.
But when a potential client needs a new HVAC system installed or a compressor fixed, the estimate on the job may be a little more than they anticipated. Sure, your labor or repair costs are competitive and fair, but the client simply can’t fit it into their budget for the month or perhaps the foreseeable future. That leaves your client without a working HVAC system and your business without new revenue being generated to help with growth and expansion.
Your clients may appreciate your advice on increasing energy savings and protecting their indoor air quality, but if you were able to help make the cost of your parts and labor more manageable on an installation or repair job, wouldn’t that be a competitive advantage to help you succeed in the marketplace?
When you offer financing options through Fund My Contract, your business can gain that competitive advantage.
HVAC System Financing for Your Business
Most customers who approach your business for HVAC system work don’t have the cash on hand to pay for the job in full when the bill is due. As a result, the customer may be hesitant to move forward with the work and that puts you both in a difficult position. Your customer may be able to afford the cost and your rates are fair, but the possibility of paying for the job in one lump sum is not feasible.
So your customer decides to wait or maybe even turns to your competitors who are willing to do the job for cheap. The results are less than optimal and your business is left waiting for the next customer to come along before generating significant revenue that can help your HVAC company grow…and even that’s no guarantee the next customer won’t have similar objections or reluctance to the cost.
But financing programs through Fund My Contract can make it easier for your customers to say yes to hiring your services and even urge them to spend more than they might have intended.
For example, let’s say your customer’s air conditioner isn’t working properly, the cold air just isn’t very cold. He or she calls your trusted HVAC company to diagnose the problem which you have discovered is a faulty heat exchanger. You explain what’s happened, how the problem can be solved, and it requires a heat exchanger replacement which will run roughly $3,700. You try to work with the customer by offering a less expensive heat exchanger model from a good brand, but that only brings the cost down a few hundred dollars to $3,200
The customer wasn’t expecting such a high cost and they don’t have a home warranty service in place to help defray this expense. So the customer is paying for this out of his or her own pocket and they can’t afford it this month. Maybe next month, but judging by the customer’s reaction to the price, that’s not looking very promising either.
You have two choices here. Get paid for the service call which might be $40 or $50 and leave the premises as the customer tries to figure out what to do next…or present the customer with a range of financing programs that you have designed with one of the lenders in our vast network of third-party financing partners.
When you present the customer with financing options, you are removing the barrier of paying $3,200 in full at one time by providing a variety of choices that let the customer pay for the work over a series of low monthly installments on flexible financing terms that can fit into any budget. Now the customer has the option of getting the work done at a price that’s more affordable and, because they don’t have to pay in full in one lump sum when you perform the job, he or she may likely choose the better, slightly more expensive of the two heat exchangers.
Go back to your office with $40 in your pocket or book a new job that will put $3,700 into your business?When you offer HVAC financing programs through Fund My Contract, you’ll be booking more new jobs and generating more revenue with more customers.
Empowering Your Customers with More Choices
When it comes to choices, consider the previous example again. Your customer needs a new heat exchanger and there are multiple options on the market, in your view, some better than others. But price plays an important role in any decision and reducing the costs by $500 can be a significant difference.
The same goes for how your customer is going to pay for those costs and whether it’s $3,200 or $3,700, paying in one lump sum puts both amounts out of reach. Financing options help to make the cost more affordable and, better yet, empowers your customer to make smart financial decisions that affect their lives and their homes. A functional HVAC system is extremely important year round but particularly essential in the middle of summer and the dead of winter, when temperatures can reach extreme levels. A customer facing high installation costs doesn’t need to choose between having the work done or going without heating and cooling when they need it most.
When you empower your customers in this way, you’re also increasing customer satisfaction and that fosters customer loyalty. Happy customers write positive customer reviews and since we make so many purchases and purchasing decisions online, potential customers who see excellent reviews and ratings from previous customers are more likely to hire your services for repairing and installing their HVAC systems.
HVAC Financing is Smart and Simple
Don’t let your customers walk out the door because they can’t afford to pay the costs of your services in full. Offer financing programs through Fund My Contract, our network of third-party lenders are ready to help you develop effective and affordable long-term financing options that best suit your customers’ needs.
You choose the financing programs that you feel will appeal to your customers the most. These programs can offer different incentives and benefits from low monthly payments, low competitive interest rates (for those who qualify), and flexible financing agreements where customers have anywhere from 12 to 24 months to reimburse the lender. You know your customers and their spending habits best, so you are best equipped to construct your financing programs for the widest reach and make them easy to explain and understand when you present them to a customer who is unsure if he or she wants to move forward with the project due to cost.
Approvals are also fast and easy. Fund My Contract is dedicated to helping you grow your business and when the customer has to contend with a complicated application process or a lengthy wait for an approval, he or she is more likely to move on without converting on a sale.
The customer selects the financing program they wish to participate in and fills out a short application through our dedicated online portal and getting an approval can happen in minutes instead of hours or days. That’s because customers don’t need to have perfect credit in order to be approved and filling out an application won’t impact the customer’s credit score. Most loan amounts can be funded within 24 hours.
All of these features help make it easy for your customers to hire your services and manage the costs of your work without paying the cost in full.
Fund My Contract Wants to Help Your Business Grow
Once the customer is approved and the financing complete, the money goes directly to your business to cover the costs of the work. You get paid upfront and your customer has the luxury of paying over time. Your business doesn’t have to wait to grow. You can expand when you want, that’s what Fund My Contract is all about. Helping business owners reach more customers, offer affordable financing options, and generate revenue quicker.
Reach out to one of our consumer financing experts and tell us how financing can help your HVAC business succeed in a competitive marketplace.
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