The landscape of small business loans and financing for HVAC contractors is diverse, offering a range of options to suit different business needs and financial situations. From traditional bank loans to alternative lending solutions, HVAC contractors have access to a variety of financial products designed to support their growth and operational needs. This deep-dive explores the pricing structures of five prominent lenders in the HVAC financing space, providing insights into which options might best fit different business scenarios.
Live Oak Bank
Live Oak Bank stands out as a leading SBA 7(a) lender, offering specialized loans for HVAC, plumbing, and electrical contractors. Their focus on SBA loans up to $5 million at traditional bank rates makes them an attractive option for contractors seeking substantial funding with competitive terms. The pricing for their SBA 7(a) loans is structured as Prime plus a negotiated margin, which is variable. This means that while the base rate is tied to the Prime rate, the final rate will depend on the specific terms negotiated between the contractor and the bank.
- Pricing: SBA 7(a) rates priced at Prime + a negotiated margin (variable)
- Rating: 4.7
- Founded: 2008
- HQ: Wilmington, NC
Crest Capital
Crest Capital offers a robust equipment-financing solution with nearly two decades of experience in HVAC and climate-control financing. Their offerings are particularly appealing for contractors looking to expand their equipment base. Crest Capital provides Section 179-friendly loans and leases up to approximately $1 million, with application-only tiers that simplify the process for contractors. However, specific pricing details are not publicly listed, requiring potential borrowers to contact the company directly for more information.
- Pricing: Not publicly listed
- Rating: 4.7
- Founded: 1989
- HQ: Atlanta, Georgia
National Funding
National Funding is an alternative lender that provides small business loans up to $500,000 and HVAC equipment financing up to $150,000. They offer early-payoff discounts, which can be beneficial for contractors who are able to retire their debt ahead of schedule. Like Crest Capital, National Funding's pricing is not publicly listed, necessitating direct contact for specific rate information.
- Pricing: Not publicly listed
- Rating: 4.5
- Founded: 1999
- HQ: San Diego, California
AdvancePoint Capital
AdvancePoint Capital operates as a business-lending marketplace, offering a variety of financial products tailored to HVAC contractors. These include term loans, lines of credit, equipment financing, and SBA loans up to $500,000. The marketplace model allows contractors to find the right product for their specific needs, whether it's managing seasonal cash flow or funding growth initiatives. Pricing details are not publicly listed, so interested contractors will need to reach out directly for more information.
- Pricing: Not publicly listed
- Rating: 4.5
- Founded: 2012
- HQ: Cherry Hill, New Jersey
Credibly
Credibly provides alternative lending solutions with a focus on accessibility for newer HVAC businesses. They offer working capital loans, merchant cash advances, lines of credit, and equipment financing, with relatively low entry requirements such as a minimum FICO score of 550 and six months in business. Their pricing is structured with factor rates starting from 1.15, which can be appealing for contractors who may not yet qualify for traditional bank or SBA financing.
- Pricing: Factor rates from 1.15
- Rating: 4.4
- Founded: 2010
- HQ: Southfield, Michigan
Summary Table
| Company | Entry-Level Monthly Cost | Pricing Structure | Rating |
| -------------------- | -------------------------- | ------------------------------------ | -------- |
| Live Oak Bank | Not publicly listed | Prime + negotiated margin (variable) | 4.7 |
| Crest Capital | Not publicly listed | Contact for pricing | 4.7 |
| National Funding | Not publicly listed | Contact for pricing | 4.5 |
| AdvancePoint Capital | Not publicly listed | Contact for pricing | 4.5 |
| Credibly | Not publicly listed | Factor rates from 1.15 | 4.4 |
Conclusion
For HVAC contractors, selecting the right financing partner depends on the specific needs and financial health of their business. Live Oak Bank is well-suited for those seeking substantial funding with competitive SBA loan terms. Crest Capital and National Funding offer flexibility and are ideal for equipment financing, though pricing details require direct inquiry. AdvancePoint Capital provides a diverse range of products through its marketplace model, making it a versatile option for various financial needs. Lastly, Credibly's accessible lending criteria make it a practical choice for newer businesses looking to establish their financial footing. Each lender offers unique benefits, and contractors should carefully evaluate their options to align with their business goals and financial capabilities.