HVAC Company Heats Up
Asset-Based Loan HVAC Company Heats Up
Author: Valerie Mellema
Date posted: 04.07.23

Located in the Midwestern United States, a well-known HVAC company had become a big-name brand known for quality in the suburbs of a large city. They were the clear choice for many residents and even newcomers quickly saw their ads and heard about them from colleagues. Things couldn’t have been going much better and the future was already looking bright. But success can be just as challenging as failure in some ways. When things are going well, the only direction to move is up. The HVAC company owners were soon put in that position and had a choice to make.

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 as the HVAC Company Heats Up. 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 to further enhance how the HVAC Company Heats Up. Opening a small office on the other side of the city could generate new business and boost the brand’s popularity, necessitating suitable financing.

HVAC Company Heats Up

The Cost to Bring on New Customers

 

The main idea was a new office, but the owners knew it involved more. They’d need workers for the new location. They’d also require 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 for a comprehensive start without skimping on any aspect.

 

Which Financing Is Right?

 

Research quickly indicated that there were a ton of financing options. The owners decided to choose something that utilized collateral. 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. This was 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, 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.

 

HVAC Company Heats Up
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.

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