It’s a good time to be in the heating, ventilation and air conditioning industry. HVAC contractors are benefiting from rising demand, emerging technologies, and a widespread move toward urbanization. The result is a promising economic climate for general contractors, as well as for those operating plumbing businesses and construction companies. However, if you are looking to grow your HVAC company or hit with unexpected business expenses, you will need access to HVAC business loans. QuickBridge helps independent heating and air conditioning companies secure HVAC business loans in order for them to succeed among big-name competitors.
According to MarketsandMarkets, the global market for HVAC systems is expected to rise at a compound annual growth rate of 6.8 percent from 2018 to 2023. The growth in the industry is causing many businesses to seek out HVAC business loans for capital. Securing business financing helps them meet the increase in customer demand. This rapid growth is triggered by a widespread move to reduce energy consumption in facilities. Throw in an increase in extreme weather in recent years, government rebate programs, and several buildings with outdated systems, and you have a recipe for a booming market.
This is great news for HVAC contractors, but adjusting to today’s marketplace may be challenging for small businesses in the HVAC space. Here are some of the top industry problems that small business owners face:
The HVAC sector is experiencing a skills shortage. And when businesses do find skilled workers, it is often difficult to provide ongoing training and advancement opportunities to retain them. Citing data from the Partnership for Air-Conditioning, Heating, Refrigeration Accreditation, a Contracting Business report explained that the staff shortage will climb beyond 115,000 contractors by 2022.
So how can your HVAC business attract and retain skilled staff? One option is to engage in more aggressive marketing efforts within your community. Some options for this strategy, such as speaking in schools or attending career fairs, aren’t expensive. However, marketing to job seekers at-large may require additional capital. Additionally, offering apprenticeships, mentoring programs, and similar efforts can be beneficial when building a staff.
Payroll and employee costs are a necessary expense in every industry. For the HVAC industry, payroll can be incredibly expensive, especially during seasonal lulls. Consider funding from a business payroll loan to ensure your team is paid on time and properly trained. It will keep your staff happy and your business operations running at full capacity.
For HVAC companies, offering innovative products, systems, and services is essential. Not only does the inclusion of technology benefit your customers, but it also speeds up day-to-day business operations. For starters, consider how technology can change your business practices.
Monitoring devices, sensors, and similar solutions can help you streamline maintenance by tracking equipment use in real time. Mobile apps can help your workers file invoices, log sales, and track inventories in the field. Drones can be used to analyze hard-to-reach spaces that would otherwise pose a safety hazard.
Of course, you’ll need the right people and adequate working capital for your business if you want to take advantage of this type of technology. Purchasing these items may be expensive up front, but being able to run a more efficient HVAC company will save you valuable time and likely boost customer sales.
The rapid growth taking place in the HVAC sector has created plenty of opportunity for newcomers, but staying afloat early on requires cash flow. HVAC business loans can provide supplementary working capital to keep your businesses going as you work to grow.
Traditional small business lenders often have tight restrictions when it comes to approving small business loans for certain industries. Alternative lenders, like QuickBridge, have different decision-making processes that make getting a business loan fast and efficient. Here’s how our process for HVAC business loans works:
Whether you are trying to develop a new staffing strategy, invest in cutting-edge technology, or grow your young business, an HVAC business loan from QuickBridge can help. In general, alternative lenders achieve loan approval ratings of between 61 and 64 percent, compared to big banks, which approve only 13 to 20 percent of small business loan applications.
QuickBridge works closely with small business owners at every stage to deliver the right loan, right when it’s needed. Get in touch today to learn more.