Financing for HVAC Contractors: Offer Monthly Payments, Keep Your Margin
HVAC contractors offer financing by partnering with a platform that lets homeowners apply with a soft credit pull and receive lender offers on the spot — turning a $15,000 system replacement into a ~$300/mo decision (illustrative; terms vary by lender and credit). The key choice is the cost model: per-transaction dealer fees eat 3.9%–15.75% of every financed job, while flat-subscription platforms charge an annual fee with no per-loan cost.
- No per-loan dealer fee on emergency replacements
- Loans to $250K, credit scores down to 550 served
- Soft pull, ~60-second prequalification
The HVAC margin problem
Nobody budgets for a dead compressor in July. Your average replacement runs $10K–$25K, the homeowner has $4K liquid, and your competitor's "cheap" bid is $3K under yours. Financing is how you win that job without cutting price — but on a dealer-fee program, winning costs you.
Straight out of margin, on every financed job.
Per-loan cost, no matter how many systems you finance this month.
I cannot afford to lose margin on a $10K–$25K system replacement.
— HVAC owner, r/hvacadvice, 2026That's the whole comparison: sell payment. keep margin.
What a financed system actually looks like monthly
Illustrative only. Independently verified by standard amortization — quote the payment next to the price on every proposal.
| System price | ~7.99% APR / 5 yr | ~14.99% APR / 5 yr |
|---|---|---|
| $10,000 | ~$203/mo | ~$238/mo |
| $15,000 | ~$304/mo | ~$357/mo |
| $25,000 | ~$507/mo | ~$595/mo |
Illustrative only. Rates and terms vary by lender and customer credit; not an offer of credit.
Choosing an HVAC financing partner
Financing 2+ systems a month?
Per-loan fees are your biggest hidden overhead. A flat model (Hearth: $1,499–$4,999/yr, no dealer fee) caps the cost.
Living inside ServiceTitan/Housecall Pro, financing occasionally?
Wisetack's embedded 3.9%/transaction model is convenient — but note the $25K cap pinches on premium systems + IAQ add-ons.
Selling 0% APR promos as strategy?
Dealer-fee lenders (Service Finance, GreenSky) exist for exactly this; price the fee into the bid or it prices itself into your margin.
Subprime-heavy customer base?
Multi-lender marketplaces widen approval coverage (Hearth's network serves scores down to 550; approval never guaranteed).
How Hearth works for HVAC companies
Your top questions, answered
How much does it cost an HVAC company to offer financing?
Dealer-fee programs: 3.9%–15.75% of each financed job. Flat-subscription platforms like Hearth: $1,499–$4,999/yr with no per-loan fee. Break-even is roughly 3–10 financed jobs a year.
Can customers finance a full system replacement?
Yes — Hearth's lender marketplace covers $1,000–$250,000, comfortably above typical $10K–$25K replacements. Platforms with $25K caps can pinch on premium equipment plus add-ons.
Does offering financing slow down an emergency replacement?
No — prequalification is a ~60-second soft pull on the customer's phone. It's often faster than negotiating a down payment.
Do I take credit risk on the loan?
No. Third-party lenders underwrite and fund; you're paid at completion and never own repayment risk.
Sell payment. Keep margin.
Flat annual subscription, no per-loan dealer fee, and Harper catching the missed calls that become emergency replacements.
