The HVAC industry has faced significant shifts over the past few years — from navigating repairs and replacements during COVID to supply chain shortages and price increases. And now, another major change is on the horizon: the A2L refrigerant transition.
If you’ve been in the industry a while, refrigerant changes are nothing new. You’ve likely already started preparing your team and adjusting your inventory for the A2L transition. But let’s consider how these refrigerant transitions will affect your customers.
With HVAC prices nearly doubling since 2020, and A2L equipment likely adding to the cost, passing these expenses to your customers may be unavoidable.
This is where offering financing can help. By providing flexible lending solutions, you can make these price increases more manageable for your customers — without sacrificing your bottom line.
As you know, HVAC services are often an emergency expense that many homeowners aren’t financially prepared for, especially with HVAC prices increasing. A recent study from the Federal Reserve found that 37% of Americans can’t cover a $400 emergency expense with cash or cash equivalent.
Financing options improve your customers’ experience by helping them afford your services. There are many lending solutions you can offer, including:
Since every homeowner’s financial situation is different, we recommend offering multiple lending solutions so your customers can find the right match.
Finding the right lending partner can save you time and money. Sure, you can offer payment plans yourself, but that can be risky. If your customers don’t pay you back, you’re left chasing them down and handling collections, taking valuable time away from your business. Lenders do the hard work for you. Once the job is complete and the lender pays you, your work is done.
However, not all lenders are created equal, especially as lending standards tighten. The increased risk of a decline makes it even more important to partner with a lender who can accommodate most — if not all — of your customers.
Here are a few questions to consider and ask potential lenders before making a decision:
Offering a range of flexible lending solutions benefits both you and your customers. It helps your homeowners afford necessary services while helping you close more jobs — especially in a market where factors like the A2L refrigerant transition result in HVAC price increases. If customers can’t afford your services, they’ll find someone they can afford. Financing can be the key to making your services more accessible and ensuring you don’t lose out on work due to cost.