Unlock new lending and growth opportunities with HVAC financing—powered by LoanStar’s convenient embedded lending solution.
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 This is an ongoing necessity; especially as older homes continue to require HVAC overhauls for their outdated systems.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.
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:
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.
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.
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.
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.
We can help you too.
How it works
Match with local HVAC businesses through the MerchantLinQ platform.
Boost your loan portfolio as HVAC contractors drive loan applications through a branded portal.
Grow your business by generating new customers to scale deposits over time.
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