Invoice Finance for HVAC Companies

HVAC contractors (heating, ventilation, air conditioning, and refrigeration) work on some of the most expensive M&E packages on any construction project. An air conditioning installation for a commercial office can be £50,000-£200,000. Chillers, AHUs, ductwork, and controls are ordered weeks before installation, paid for upfront, and billed to the main contractor on 45-60 day terms. Construction factoring advances 80-90% of each certified application within 24-48 hours.

The HVAC Cash Problem

HVAC has the highest materials-to-labour ratio of any M&E trade. A VRF system for a 10-storey building might cost £80,000 in equipment alone, before a single engineer steps on site. Manufacturer payment terms are typically 30 days — but your application to the main contractor won't be certified for another 4-6 weeks after installation. You're carrying the equipment cost for 2-3 months.

Factor in F-gas certified engineers at £200-£350/day, specialist tools, and commissioning time, and even a mid-sized HVAC contractor can be £100,000+ out of pocket across active projects.

What Makes HVAC Different

• Equipment lead times. Chillers and AHUs have 8-12 week lead times. You may need to order (and pay for) equipment months before you can invoice the main contractor. For the ordering phase, ask about purchase order finance to bridge until installation.
• Commissioning delays. HVAC systems can't be invoiced until commissioned and signed off. Delays in other trades (no power, no access, building not watertight) push your billing date back — extending the cash gap further.
• Maintenance contracts. Ongoing maintenance and service contracts provide steady recurring revenue that's ideal for factoring. Monthly maintenance invoices to FM companies or building managers are clean, predictable, and low risk.