How to Get Funding For Your HVAC Startup

How to Get Funding For Your HVAC Startup

The hardest part in running an HVAC business is the actual startup cost. This is the same problem most business owners face and it can be intimidating starting the business off in the negative. There are many ways to get the funding for your business, especially since the HVAC industry can be a lucrative one.

Small Business Loan

The first tactic to take to get funding is to apply for a small business loan through the Small Business Administration. They offer two types of loans, one that offers a small loan and another that offers a finance program. While the 7(a) business loan is the most common, they do require contractors to already have a track record built up.

Presales & Prepayment

Another method that will help ease the cost of startup is by requiring a prepayment for services. This is not generally preferred by customers who do not know you, but it can be done. However, the selling of products in advance will help bring in money. Having an online store where people can purchase parts for their current systems will help generate an income that you can use while you wait for invoices to be paid.


Asking friends and family for funds can be embarrassing; however, crowdfunding is becoming a very popular way to generate funds. Kickstarter is a site that has given many companies the boost they need to start their small business. They offer people the ability to look for several investors and raise money by offering rewards. For example, if someone donates money, you can offer them a percentage off their initial service. It is important that you read the fine print before starting so you know how much the site gets to keep.

Keep Your Day Job

Even if you really want to have an HVAC business, sometimes it is best to keep your day job while you work to build a customer base and income. This is difficult when you are trying to still have time for your family, but it is a way to ensure bills get paid.

Home Equity

If your home has equity, getting a home equity loan is an excellent option to get a small business loan. The rates are lower than traditional loans and they are often more flexible. It is important to realize that you are putting your house on the line though, so you want to make sure that you have the ability to recoup the money.

Selling Assets

If you have property you no longer need, you can sell it to raise money. Assets that can bring in money include extra vehicles, second properties, boats, and so forth. When you combine the big ticket items with smaller sales, it becomes easier to raise the money necessary to cover the startup costs.

While it may seem tempting, funding a startup business should not come from payday style loans. You will find it is easier to secure loans if you have had the proper training to be an HVAC agent and have the experience to back it up. Visit to find schools near you.