HVAC lending

Unlock new lending and growth opportunities with HVAC financing—powered by LoanStar’s convenient embedded lending solution.

hvac lending

Rising energy costs, environmental awareness, and the necessity of maintaining a comfortable living environment make HVAC (Heating, Ventilation, and Air Conditioning) upgrades a priority for most Americans. This is an ongoing necessity; especially as older homes continue to require HVAC overhauls for their outdated systems.

As the HVAC industry continues to thrive, credit unions and banks can seize a remarkable opportunity to cater to homeowners’ evolving needs. Additionally, by offering HVAC lending solutions through embedded lending, financial institutions can align with this dynamic market segment, providing homeowners with convenient, customer-centric financing options.

Did you know?

Over 3 million heating and air conditioning systems undergo replacement in the U.S. every year.

The yearly HVAC expenditure in the US is $14 billion—marking a lucrative segment for lenders to expand into.

Why choose HVAC lending?

HVAC lending presents numerous advantages for financial institutions looking to diversify their portfolios and foster long-term growth. Below are a few compelling reasons to explore this lending segment:

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Wide range of project costs.

From cost-effective system repairs to brand-new HVAC installations, this diverse opportunity empowers lenders to tailor their lending approach to meet the unique risk, budget, duration, and demographic desires of their portfolio.

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Market demand.

HVACs are an integral part of modern living, with homeowners and businesses relying on these systems to maintain comfort and productivity. In fact, 90% of homes in America have HVAC systems. Lenders therefore have the opportunity to take advantage of this steady demand for HVAC loans.

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Reduced default risk.

Essential HVAC upgrades, driven by the necessity for comfortable living conditions, generally exhibit lower default rates. Borrowers in this category are more likely to adhere to the loan terms, avoiding premature refinancing, and ensuring consistent repayment for lenders.

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Driving green initiatives.

By powering financing for eco-friendly HVAC upgrades, banks and credit unions can qualify for state and federal monetary incentives. Research your state’s green initiatives to learn how you can gain access to incentive funds and drive sustainable practices in your area.

HVAC contractor looking to grow your business?

We can help you too.

Access HVAC opportunities through MerchantLinQ.

How it works

merchantlinq platform match

Match with local HVAC businesses through the MerchantLinQ platform.

drive loan applications

Boost your loan portfolio as HVAC contractors drive loan applications through a branded portal.

scale deposits over time

Grow your business by generating new customers to scale deposits over time.

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Explore timely insights on embedded lending.

The opportunities are limitless.

Explore more of our compelling loan segments.

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