HVAC and Plumbing Merchant Cash Advance & Business Funding
HVAC business financing for contractors, plumbers and electricians.
HVAC, plumbing and electrical contractors can apply through Afterfirst, which sets each funder's terms next to the others in dollars. An advance weighs most when its term runs into a shoulder month, because the debits keep going out while deposits dip. Offers are sized on deposits averaged across service calls and big installs. Funders expect peaks in the hottest and coldest months and dips in between, and some discount the largest install deposits when they size an offer.
Who should read this: HVAC, plumbing, electrical and other home service contractors, and brokers with those files.
Service calls and installs read differently in HVAC business financing
Service calls produce many smaller deposits, while installs produce a few large ones.
A month with two system replacements can look far stronger than a month of repairs with the same effort. Funders average them, and some discount the largest deposits when sizing an offer.
Construction contractors see lumpier progress payments, and Landscaping crews see a sharper winter drop.
We're not a funder.
We don't fund deals ourselves. We shop yours with funders who do, so you see more than one offer.
Only funders that fit.
Your file goes to funders that work with your industry and your deal size. Nobody else sees it.
You make the call.
Every offer comes to you in writing. Nothing happens until you pick one.
- What it costs to apply
- Nothing. Applying costs you nothing, and Afterfirst MCA charges you no fee.
- Credit
- Ask us how each funder checks credit before you agree to anything.
- Speed
- We call you back and talk with you before your file goes to any funder.
- Offers
- Every offer shows the total payback, the payment amount, how often it comes out, and the term.
What seasonality do funders expect in HVAC?
Funders expect HVAC deposits to peak in the hottest and coldest months and dip in the mild seasons between. A spring statement may show the weakest stretch of the year.
Sending a full year of statements, or noting last year's pattern, keeps a seasonal dip from reading as a decline.
A contractor coming out of a slow season with two advances may be better served by Consolidation than a third, and the Factor rate guide shows what a shorter term does to cost.
Supply house spending in a service business
Funders read supply house spending against the jobs it supports, expecting it to rise ahead of busy months. Spending that rises without deposits following draws questions.
Stocking trucks before peak season
Service companies often stock trucks and warehouses before the heat or cold arrives. The statement shows supply purchases climbing first.
A plumbing company after a hard freeze
A hard freeze can bring a rush of emergency calls and parts purchases in a few days. Deposits follow as those invoices are paid.
Homeowners pay on completion, commercial on terms
Homeowner calls are usually paid on completion, while commercial jobs may pay on terms. The mix changes how soon deposits catch up.
Commercial terms that stretch past sixty days
Some commercial customers pay on long terms, so a big job can finish well before its deposit arrives. List the open commercial invoices with their due dates.
January freeze, February catch-up
A note might read: freeze in January, emergency calls tripled for two weeks, parts spend up, deposits caught up in February. A funder then reads both months correctly.
Do maintenance agreements help a home service file?
Maintenance agreements can help because they bring recurring payments and repeat work. They show up as smaller regular deposits or card charges.
Mention how many agreements are active and how they bill.
Asked by trade contractors
Can an HVAC company get an advance before its busy season?
Yes, some HVAC owners take an advance ahead of peak season to stock equipment or add crews. The busy months then support the remittance. Check that the term ends before the next slow stretch.
Do supply house accounts count as existing debt?
Supply house accounts are trade credit, and their payments show as debits on the statement. Funders count the whole payment load, advances and otherwise. List large supply accounts with your obligations.
Does financing offered to homeowners affect your file?
Consumer financing programs pay the contractor in lump sums, net of fees. Funders count those deposits as revenue. Note any consumer financing partner so the deposits are recognized.
A peak and a shoulder month worked through
Example: a contractor deposits $150,000 in July and $90,000 in April. A fixed debit of $500 each business day comes to about $10,500 a month. That's 7.0% of July and 11.7% of April. The shoulder month is the one to plan around, since the debit stays the same while service calls thin out.
Sources
- The Bureau of Labor Statistics Occupational Outlook Handbook entry for HVAC mechanics and installers notes irregular schedules during peak heating and cooling seasons and service contracts for periodic maintenance, the two patterns HVAC business financing is read against.
Afterfirst is not a funder; all offers are subject to funder underwriting.
Costs and risks: credit, timing and stacking
Cost
Credit
Speed
Stacking
Which funding options fit HVAC and plumbing contractors?
Each page runs one option against this industry's slow months.
Second position MCA for HVAC and plumbing contractors
What a second advance adds on top of the first, and what both payments take from deposits in a slow month.
MCA consolidation for HVAC and plumbing contractors
One payment in place of two, with the share of deposits before and after in a slow month.
Revenue-based financing for HVAC and plumbing contractors
A remittance that moves with revenue, so a slow month sends less, and the months to reach the repayment cap.
Business line of credit for HVAC and plumbing contractors
A draw sized for a slow month, repaid in thirds, with the interest on the balance worked out.
Send one file.
See what fits.
Call 877-FUND-654 with questions.