Why the Company Needed Financing


Lots of businesses get financing to try to dig themselves out of a problem, but that wasn’t the case in this situation. Instead, the owners of the HVAC company realized that there was only so much work they could do with a single location. They were happy to say they were successful but wondered if they couldn’t take things to the next level.


After meetings and conversations, the owners decided to look into opening a new location. A small office on the other side of the city would open up new business and potentially make the brand more popular than ever. However, doing so would mean finding the right means of financing.

The Cost to Bring on New Customers


The main idea was to have a new office, but the owners knew that this undertaking would involve more than that. They’d need workers for the new location as well as tools, equipment, and other items related to the job. Additional marketing would also be useful to ensure people were aware of the new location.


After looking into options and considering what direction to move in, the owners determined they’d need about $300,000 to move forward. This would provide them with everything needed to get started without needing to skimp on any part of the undertaking.


Which Financing Is Right?


Research quickly indicated that there were a ton of financing options. The owners decided to choose something that utilized collateral since they had a thriving business and access to equipment and tools. It only made sense to select a financing model that took that into account.


After going over the various options, the company saw the potential of an asset-based loan. It seemed like the perfect option. It would be flexible with monthly payments and a reasonable interest rate due to access to collateral. The owners moved forward as soon as they all agreed this was the way to go.

Reasons to Choose an Asset-Based Loan


The HVAC company easily met all the requirements to apply for an asset-based loan. They had been in business for several years, had a great credit score, and brought in significant revenue each year. On top of that, they had assets to use as collateral, which made this type of loan possible.


Interest rates were lower for this loan and the possible amounts went up into the millions so it fit the company’s needs. Funding would take a bit longer than some other financing options but that wasn’t a big deal in this case.


How Is the Company Doing Today?


After the money rolled into the company’s account, they moved forward with nailing down an office and bringing in new workers for it. Since then, they’ve advertised the location and started work. Right now, the HVAC company is doing better than ever before. It’s expected that things will only improve over the next few years as news of the new branch makes it across the city.


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