HVAC contractors
Summer revenue is decided in March and April, when you stock equipment and train people. Here is the per-install math, a dated line-of-credit schedule, and the honest file rules for a specialty trade.
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Updated October 13, 2026 · Merchant Fund Express
A seasonal stocking and hiring push fits a revolving product best: draw in March and April, repay from June and July installs, and pay only on the balance you carry. For an established HVAC company that clears our first tier, that is a business line of credit. A fixed-schedule advance starts debiting before the summer cash arrives, which is the opposite of what a pre-season build needs.
HVAC is a specialty trade, so be clear about which rules your file meets. On our revenue-based tier, construction-trade files are read against the construction rule: $500,000+ in monthly revenue, 5 years in business, 10+ deposits a month and a commercial business location. Most HVAC companies below that size should look at the first tier, equipment financing or supplier terms instead.
| Line | Amount |
|---|---|
| Average replacement ticket | $9,500 |
| Equipment (condenser, coil, air handler or package unit) | −$3,000 |
| Line set, pad, electrical, permit | −$900 |
| Install crew labor | −$1,500 |
| Gross margin per install | $4,100 |
The company in this example: 7 years open, a shop and yard on a commercial lease, a 690 FICO, deposits averaging $210,000 a month (about $150,000 in spring and $300,000 in summer). It plans to pre-buy 30 units at an average of $3,000, which is $90,000, and hire two install techs on April 1 at a loaded cost of $7,500 a month each.
Assume a line of credit priced at 1.5% a month on the balance carried. Our published pricing starts at 1% a month, so this is a cautious assumption for the arithmetic.
| Date | Action | Balance after | Cost for the month |
|---|---|---|---|
| Mon, Mar 1, 2027 | Draw $90,000 for 30 units | $90,000 | $1,350 |
| Thu, Apr 1, 2027 | Draw $15,000 for first month of new tech payroll | $105,000 | $1,575 |
| Sat, May 1, 2027 | Repay $30,000 from April and early May installs | $75,000 | $1,125 |
| Tue, Jun 1, 2027 | Repay $40,000 | $35,000 | $525 |
| Thu, Jul 1, 2027 | Repay $35,000 | $0 | $0 |
Total drawn: $105,000. Total financing cost: $1,350 + $1,575 + $1,125 + $525 = $4,575. Total repaid: $109,575.
What the push earns: 30 installs at $4,100 is $123,000 of gross margin. Less the two techs for April through June, $45,000, and less the $4,575 financing cost, the season adds about $73,425. If only 20 units install by July, margin is $82,000 and the push still clears about $32,400, with 10 units on the shelf for fall.
All figures in worked examples are illustrations of the arithmetic, not offers or quotes. Real terms depend on your file and the funder.
See construction company requirements for how trade files are read and the plumbing and HVAC cash flow guide for monthly planning. To test the size before you ask, use the payment burden calculator.
Write down your pre-buy amount, your hire date and your expected install count by month, then check which tier your company reads against. The check starts with a soft credit pull.
HVAC is a specialty trade. On our revenue-based tier, construction-trade files are read against the construction rule: $500,000+ monthly revenue, 5 years, 10+ monthly deposits and a commercial location. The first tier uses its own published lines.
An advance debits on a fixed daily or weekly schedule from the day it funds, so you pay through March and April before summer installs bring cash in. A line of credit charges only on what you carry.
Base it on last summer’s actual install count and your booked backlog, not on a distributor promotion. Unsold units tie up cash into fall.
Yes. A ramp month of payroll before installs pay is a normal use, and it should appear in your schedule as its own line.
HVAC service and replacement is a specialty trade we discuss. Residential remodeling and new home construction are restricted, and we do not promise funding for those.
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