Funding for home services

HVAC, plumbing and roofing funding with costs up front

Vans, stock and techs get paid for before peak season pays you back. Compare offers for your HVAC, plumbing, electrical or roofing business with every cost shown side by side.

The cash cycle

Busy and slow months

BusySlowSteady

Summer is peak for AC and roofing work, while the slow stretch depends on trade and location: spring and fall for HVAC, winter for roofers in cold states.

How money moves

Where the cash gets stuck

Service calls pay by card or check the day of the job, while bigger installs usually take a deposit up front and the balance at completion. Parts, equipment and permits get paid before the invoice goes out, and homeowner financing programs pay you after the job, minus a dealer fee. Tech payroll runs weekly or biweekly whether calls come in or not.

What owners use funding for

Underwriting

What funders check in home services

Know what they'll look at before they look.
  • Deposits across your busy and slow months
  • Average job size and how customers pay: card, check or a financing program
  • Trade licenses and insurance
  • Existing vehicle and equipment loans
  • Commercial receivables, if you do contract work
  • Service agreement revenue that repeats each month

Watch out for

A mild summer with fixed debits

HVAC calls follow the weather, and a cool summer or a warm winter can cut volume sharply. Fixed debits don't adjust, so prefer split funding or a line you draw only when you need it.

Insurance-claim jobs pay in stages

On storm and insurance work, the carrier often pays part of the claim up front and the rest after completion, and checks may need the mortgage company's endorsement. Don't size a payment on money that's still in an adjuster's queue.

Bank covenants and new liens

A bank line of credit often forbids other liens or debt. An advance with a blanket UCC-1 can put that line in default, so read your bank agreement before you sign anything new.

In depth

Funding the season before it starts

Home service shops spend on stock, trucks and hiring before peak demand pays, so time funding to arrive early and end with the season.

A spring order of condensers, a new tech's first weeks of pay and a marketing push all go out before July's calls come in. That's a real funding need, but it's a seasonal one. Build the plan from last year's deposits: when calls picked up, and how many weeks passed between buying stock and getting paid for installs. That gap is the term you need.

Match the term to it. An 8-month advance taken in April debits through November, well into the shoulder season when HVAC calls thin out. A line of credit drawn in spring and paid down in summer, or a shorter term that ends with your peak, keeps you from paying for July's money in October.

Openbook Capital lays out each offer's total payback, cost in dollars, payment schedule and estimated APR side by side, so you can see what a season's funding really costs before you sign. The compare offers tool does the same for quotes you already have.

Service vans: finance, lease or pay cash

A van earns money every day for years, so finance it over years and keep your cash for the season.

Equipment financing covers vans, box trucks and upfits like shelving, ladder racks and inverters. The vehicle is the collateral, so the cost is usually lower than unsecured funding, and the payment stays fixed.

Leases can keep the down payment low, but check mileage limits and wear rules, since service vans pile on miles. A $1 buyout lease works much like a loan, while a fair market value lease leaves you choosing at the end. Our financing versus leasing guide compares both.

Get the van and the upfit on 1 quote if you can, since some lenders finance the whole package and others only the vehicle. If the van is for a new tech, time the purchase to their start date so payments don't run for weeks before they bill. Paying cash can look thrifty, but it drains the cushion you need when a compressor order and a slow week land together.

Service tickets, installs and commercial terms

Your mix of card-paid service calls, financed installs and commercial invoices decides which funding fits.

Card-paid service tickets settle within days, so a shop that runs mostly service can handle split funding without much strain. Installs pay in pieces: a deposit, then the balance, often through a homeowner financing program.

Commercial and new-construction work often pays on terms, weeks after the invoice. If that's a growing share of your revenue, invoice factoring or a line suits it better than a daily debit. Knowing your mix lets you pick the payment structure before a funder picks it for you.

Electricians and plumbers who sub on new construction also face progress billing and retainage. Our construction funding page covers how that timing works.

Can I finance a used service van?

Yes, many lenders finance used vehicles, though age and mileage limits vary. Expect a larger down payment on an older van.

Do homeowner financing payouts count as revenue?

The net payout that lands in your bank account counts as a deposit. The dealer fee never reaches you, so funders see the lower figure.

Is supplier financing a better deal on equipment?

Sometimes. Distributor programs can be cheap, but compare the total cost against an outside offer, including any discount you give up by not paying cash.

Can a new HVAC or plumbing business get funding?

Openbook can usually help once you have 6 months in business and $10,000+ in average monthly deposits. Before that, vehicle and equipment financing are usually the first options to open.

Do service agreements help my application?

Yes. Recurring maintenance agreements show predictable revenue, which can help a funder size an offer. Have a count of active agreements and their monthly value ready.

One application, many funders

Know the cost. Then decide

Tell us what you need in about 3 minutes. We compare funders that fit and show every offer with its total payback, dollar cost, payment and estimated APR.

  • About 3 minutes. No SSN and no bank login to start, so checking doesn't affect your credit.
  • 4 months of bank statements. A specialist contacts you within 1 business day and asks for them through a secure link.
  • You approve every funder before your file goes out. No cost to apply, and no obligation to accept.