HVAC Company Expands
Commercial Real Estate Financing HVAC Company Expands
Author: Valerie Mellema
Date posted: 07.18.24

A heating and air conditioning company on the West Coast had made a name for itself in servicing residential and commercial businesses across a large swath of the state. The company specializes in installing, repairing, and maintaining heat pumps, furnaces, air conditioners, hot water tanks, boilers, and more. The business was the go-to in town for its excellent service, experience, and competitive prices. Things were on the way up and everyone involved in the company was excited about that.

The Issue at Hand

Every year, this HVAC company was experiencing growth. This was a good thing, but it led to the need to make a decision. The current building the company was in was quickly becoming crowded and more growth would only exacerbate the issue. However, a fantastic building was discovered that would end those problems and leave plenty of space to grow in the future. Of course, the owner would need to find financing to get the building. In addition, there was only a short window to get this facility that would be perfect for the company’s needs.

 

Doing the Math

After checking out the building to ensure it would work, they needed to consider how to finance it. Firstly, it would cost just over $2 million to get the building desired, and there simply was no way to pay cash for it. Therefore, they would need financing. Moreover, it seemed well worth it since the building was much larger than the current facility. Not only would it be great for the present, but it would also foster future growth.

HVAC Company Expands

Choosing the Right Type of Financing

Everyone involved wanted to make sure the right decision was made. First and foremost, spending too much or choosing the wrong financing would cut into profits. However, they urgently needed financing quickly to avoid missing out on such a fantastic opportunity. Therefore, they started considering all sorts of business loans, but many were quickly scratched off the list for various reasons. Some wouldn’t provide large loans; others weren’t the right kind of loan. In the end, after careful consideration, it seemed clear that only a few financing options would work. After analyzing the pros and cons, the HVAC company finally decided to choose commercial real estate financing.

 

Reasons to Select Commercial Real Estate Financing

Commercial real estate financing is designed to finance property used for business. That made it a great choice for buying a new facility for an HVAC business. A traditional commercial mortgage, with a 15-year repayment period and reasonable interest rates due to the business’s exceptional credit, was available. The loan repayment options worked well, allowing the business to expand while paying off the building that would last as long as the company was providing assistance with heaters and air conditioners.

What Happened After Financing?

Once the business owner had the money in hand, they were able to buy the larger facility, which better suited the work they were doing and made things more efficient. This, in turn, allowed them to bring in more customers and make additional money. The building offers plenty of room for future company growth, which has been a common occurrence over the years. With this financing option, the owners, workers, and customers are happy with the new benefits. Within the year, the business was bringing in more revenue and payment on the loan has never been an issue. Growth will never be an issue moving forward.

HVAC Company Expands
About The Author | Valerie Mellema

Valerie has over 16 years of experience as a professional writer of blogs, eBooks, articles and press releases, with a focus on finance and alternative lending. Valerie resides with her family in Texas and is passionate about her horses.

What’s New

All Resources
All Resources