Financing is key to closing more of your heating and air job proposals and it is really simple to start offering. Here are five reasons why you need to start offering your customers financing options.
1. Everyone Finances Almost Everything Already.
Cars, houses, boats, cell phones, gym fees, streaming apps, etc. Why not HVAC? It’s the norm. Financing is no longer taboo.
First, it helps your customer avoid writing a big check. Second, many will use a credit card, and financing helps your customer avoid 17-24% credit card interest and instead get a more affordable option with lower monthly payments.
2. Life Gets More Expensive. Every. Day.
Metal is up 50%.
Labor is up 25% (if you can find it).
Gas is up over $1.00 per gallon in 2022 so far (according to AAA.)
In 2021, HVAC equipment costs rose on average 31%. From 2021 to 2025 they are expected to almost double!
| Year | Average Cost |
| 2021 | $7,810 |
| 2022 | $10,875 |
| 2025 | $15,142 |
Question: How many jobs will you sell in 5 or 10 years without financing at these average costs?
3. Customers Will Buy the Best. When Affordable!
Customers will buy the best you have to offer as long as you make it affordable. A person is more likely to finance a $13,000 job than pay a $9,000 job in full. They don’t have to part with their cash. Plus, with low monthly payments, they can easily pay off the loan within 4 to 5 years with no pre-payment penalties.
Check out the table below and notice how the different types of financing offered impacts the total job cost.
| Type of Financing | Average Job Financed |
| No Payment / No Interest | $7,600 |
| No Interest Equal Payments | $9,400 |
| Low Monthly Payment 10 YR+ | $12,200 |
4. Join the Big Boys!
The top 10% of HVAC contractors offer financing. They are big for a reason.
5. It’s So Easy.
- Offer financing on every job.
- Always lead with low monthly payments and always include a same as cash loan.
- The application process typically takes less than 3 minutes on your phone. No paperwork!
- You typically get paid within 48 hours of installation.
If you are not offering financing today, start. It is not complicated and you will sell more jobs at higher prices.
If you would like to learn even more about offering homeowner financing, view our video of a webinar we offered May 10, 2022.
