Quick answer
Air conditioning and refrigeration businesses borrow for split and ducted units ahead of summer, service and install vans, commercial refrigeration contracts and staff licensing and training. Lenders look at forward bookings, supplier terms, the service-contract base that steadies winter, and refrigerant licences and trading authorisations. Unsecured lines suit seasonal stock; property security helps with larger needs.
Key points
- HVAC is seasonal and stock-heavy — timing is everything.
- Maintenance contracts steady winter income.
- Refrigerant handling licences and trading authorisations must be current.
- Commercial refrigeration brings larger, slower-paying contracts.
- Common uses
- Stock, vans, contracts, training
- Lenders focus on
- Seasons, supplier terms, licences
- Unsecured options
- Typically $5k – $500k
- Property-secured
- $20k – $5m
In the air conditioning trade, the year is decided by a few weeks of heat. When the first heatwave hits, phones ring nonstop, and the businesses with stock on the shelf and technicians on the road win the work. Getting there means buying units and hiring before the money arrives. Lenders who know the trade understand that — and they look closely at how you manage stock and the quieter months.
What do HVAC businesses usually borrow for?
- Seasonal stock. Split systems, ducted units, heat pumps and components bought ahead of summer.
- Vans. Service and install vehicles, fitted with racking and tools.
- Commercial refrigeration. Cool rooms, display cases and plant for supermarkets, restaurants and warehouses.
- Staff and training. Recruiting technicians and apprentices, plus licensing.
- Equipment. Vacuum pumps, recovery units, lifting gear and diagnostic tools.
How do lenders look at an HVAC business?
Seasonality. Lenders expect peaks and troughs. They want to see a full year of bank statements, how summer revenue compares with winter, and what keeps the business going in the off-season.
Stock and supplier terms. Buying stock on 30-day terms in spring can mean invoices fall due before installs are paid. Lenders look at supplier statements and how stock is managed.
Licences. The Australian Refrigeration Council administers Refrigerant Handling Licences for technicians and Refrigerant Trading Authorisations for businesses. Electrical licensing may also apply. Lenders expect them to be current.
Benchmarks. The ATO publishes small business benchmarks for air conditioning, refrigeration and heating services, handy for comparing cost of sales and labour.
Service contracts. Maintenance agreements with commercial clients, strata and property managers provide steady income that lenders value.
Getting ready for summer? See what your HVAC business could access — there’s no credit check to enquire.
A closer look: building a winter base
The HVAC businesses that lenders like best aren’t always the biggest in summer — they’re the ones that don’t fall off a cliff in winter. Maintenance contracts with shopping centres, offices, schools and strata buildings bring regular service work. Heating installs and heat pump hot water add winter demand. Commercial refrigeration runs all year.
A business with a solid winter base can carry its summer stock more comfortably, retain technicians year-round and borrow on better terms. If you’re building this side of the business, show it: list your service contracts, their value and their renewal dates. It’s one of the strongest things you can bring to a lender.
Documents that help
| Document | Why it matters |
|---|---|
| Bank statements (full summer and winter) | Seasonal pattern |
| Supplier statements and terms | Stock cycle and account standing |
| Refrigerant licences and authorisations | Confirms you can trade |
| Service and commercial contracts | Income across the year |
| BAS and financial statements | Turnover and margins |
Red flags for HVAC loans
- Summer stock on short terms falling due before installs are paid.
- Winter revenue collapsing with no service base.
- Large commercial debtors.
- Warranty and call-back costs eroding margin.
- Licence issues.
Questions a lender will ask
- How does summer revenue compare with winter?
- How much stock do you buy ahead of the season, and on what terms?
- How many service contracts do you hold?
- Are all technicians licensed?
- What will the funds let you do?
How to strengthen an HVAC application
Show twelve months of revenue by month and your stock purchases alongside. List service contracts. Keep licences and authorisations together. For vans or staff, estimate how many more installs or services they’ll deliver.
When should an HVAC business apply?
In late winter or early spring, before stock orders go in. Arranging a line of credit early means it’s ready when suppliers invoice.
Common misconceptions about HVAC finance
“Lenders only look at summer.” They look at the full year. A strong summer with a steady winter base is far more attractive than a spectacular summer followed by nothing.
“Supplier credit is enough.” Supplier terms help, but they’re often shorter than the time it takes to install and get paid. A line of credit fills the gap without straining supplier relationships.
“Commercial work is always better.” Commercial refrigeration and maintenance contracts bring steady income, but payment terms can be long. Lenders look at both the contract value and how quickly it pays.
“Growth means more stock.” More stock means more cash tied up. Growth that’s matched to confirmed bookings is easier to finance than speculative stock.
HVAC businesses that understand their seasonal cycle and present it clearly tend to get more suitable facilities — usually a flexible line that expands in spring and shrinks by autumn.
Illustrative scenarios
Illustrative: summer stock. An HVAC installer wants $80k to stock split systems before the first heatwave. A line of credit is drawn in spring and cleared from peak-season installs.
Illustrative: commercial refrigeration. A refrigeration business wins a supermarket contract and needs $160k for plant and labour. A property-secured facility covers it.
Secured or unsecured for HVAC?
Unsecured lines and loans of $5k to $500k suit seasonal stock and vans. Property-secured loans from $20k to $5m help for larger or longer needs. Electricians installing air conditioning should also read the electrician guide.
Could your HVAC business qualify?
A 60-second enquiry gets things moving. No credit check when you first enquire, no pile of lenders calling during your busiest weeks, and a real person who understands seasonal stock. Please fill it in accurately so we can find the right option straight away.
Frequently asked questions
Can an HVAC business borrow for summer stock?
Yes. Lenders look at last summer's installs, forward bookings and supplier terms. A line of credit drawn in spring and repaid from peak-season installs is a common structure.
Do lenders check refrigerant licences?
They expect them to be current. The Australian Refrigeration Council administers Refrigerant Handling Licences for technicians and Refrigerant Trading Authorisations for businesses.
How do lenders view winter trading?
They expect a dip. Maintenance contracts, heating installs and commercial refrigeration work help steady income, and lenders look favourably on them.
Can I finance a commercial refrigeration contract?
Yes. Lenders look at the contract, the client's payment terms and your capacity to deliver.