As a small HVAC company, you do have access to business loans to help you grow your company. Granted, banks can be somewhat stringent when it comes to lending terms for smaller companies, and so that is why more and more HVAC contractors are looking to alternative and online lenders for funding solutions. In applying for a commercial loan you want to be sure that you're prepared, that you have your financials in order, and also that you avoid making the following mistakes…
Don't Wait Until It's Too Late
In other words, if you find yourself in a situation in which you need cash ASAP, then you've probably waited too long to apply for funding. Be strategic; anticipate your needs and plan your timeline accordingly. If you wait too long or until you are struggling to apply for a loan you could run into some major issues. This could also limit the choices you have as far as financing. Not to mention, depending on how long the loan approval takes, you simply might not have that kind of time.
Don't Ignore Your Credit Score
As a small business owner, your score is almost always going to be factored into the loan decision. They are going to evaluate several factors such as revenue, years in business, and cash flow among others. But not knowing where your score stands and not being aware of what may appear on your credit report is a costly mistake. There are places you can check your credit score/report for free. Go over it carefully; look for any inaccuracies and address any mistakes that you might see on it. Additionally, if your score is not up to par, you want to start taking steps to build that FICO back up.
Don't Lose Control of Expenses
During your busier season especially, keeping those expenses under control is critical. If you are looking to take out a business loan during the offseason, you need to have the funds available to make payments on said loan. This is why keeping track of exactly what is going out and coming in during those busier times is so important.
If you have an HVAC business and require additional capital to weather a slower time or for a project that you have coming up, we would love to talk to you. First Union Lending's business loan programs are fast, flexible and designed with the small business owner in mind. Speak with a specialist to find out how we can help!