If you’re considering acquiring or growing your HVAC business, chances are you’ve looked into small business loans. But if you’re hesitating to take the next step, you’re not alone. There’s a lot of misinformation out there about how small business loans work, especially when it comes to HVAC businesses.

Maybe you’ve heard that getting a loan is impossible without perfect credit or that only brand-new businesses qualify for financing. These myths can hold you back from getting the necessary funding to expand your team, invest in new equipment, or even buy another existing HVAC business.

It’s time to clear up some of the biggest misconceptions about small business loans so you can make informed decisions and take your HVAC venture to the next level.

Myth #1: You Need Perfect Credit

Many business owners believe they cannot get a loan if they don’t have a near-perfect credit score. While good credit certainly helps, it’s not the only factor lenders consider when approving small business loans.

Lenders look at multiple aspects of your business, including:

  • Your cash flow and ability to repay the loan.
  • Your business plan and industry experience.
  • The value of any assets you’re putting up as collateral.

Some lenders even offer alternative financing options that don’t rely heavily on credit scores, such as SBA loans, equipment financing, or revenue-based loans. Even if your credit isn’t perfect, options are still available to fund your HVAC business.

Myth #2: SBA Loans Are Impossible to Get

The Small Business Administration (SBA) 7(a) loan program is one of the most well-known financing options for small businesses, including HVAC companies. However, many think SBA loans take months to process and have unrealistic approval requirements.

While SBA loans have more paperwork than other financing options, they’re not impossible to get. Thousands of small businesses successfully secure SBA loans each year. The key is working with an experienced SBA lender who can efficiently guide you through the process.

Recent SBA rule changes have made it easier for those selling HVAC businesses to structure deals with buyers, allowing more flexibility in ownership transitions. These changes make SBA loans even more accessible to those looking to expand their business.

Myth #3: Only New HVAC Businesses Qualify

A common misconception is that small business loans are only for startups. In reality, many loan programs are designed specifically for existing businesses looking to grow.

If you already own an HVAC company, you can use financing to:

  • Upgrade or buy new equipment.
  • Expand into new service areas.
  • Hire and train more technicians.
  • Acquire another HVAC business.

Lenders often prefer working with established businesses because they have a track record of revenue and operations. So, if you’re already running an HVAC company and want to scale up, don’t assume you won’t qualify for a loan.

Myth #4: All Small Business Loans Have High Rates

Some business owners avoid loans altogether because they think they’ll get stuck with sky-high interest rates. The truth? Loan terms and interest rates vary widely, and not all business financing is expensive.

Factors that can affect your interest rate include:

  • The type of loan (SBA loans tend to have lower rates.)
  • Your creditworthiness.
  • The amount of the loan and repayment terms.

In many cases, the right loan can save you money in the long run. The key is to compare different lenders and choose a loan that fits your needs rather than assuming all business loans are too costly.

Myth #5: You Need to Have Cash Upfront

Another common myth is that you need a large down payment or a lot of money saved up before qualifying for a loan. While some loans require a small upfront cash, many financing options allow you to start with little or no money down.

For example:

  • SBA 7(a) loans allow for low down payments compared to traditional bank loans.
  • Equipment financing lets you buy HVAC tools and vehicles with little upfront cost because the equipment is collateral.
  • Working capital loans help cover day-to-day expenses if you need a cash flow boost.

If a lack of upfront cash has been holding you back, talk to a lender about options that fit your situation.

Myth #6: It’s Better to Wait and Save

Many business owners feel they should wait until they have saved enough money before making significant investments. However, waiting too long can slow growth and cost you opportunities.

Here’s why financing can be a smarter move:

  • HVAC businesses are highly competitive—a competitor might expand first if you wait.
  • Equipment wears out over time, and delaying replacements can increase repair costs.
  • A well-structured loan can help your business generate more revenue, making it easier to pay off over time.

If you have a solid plan and financing will help you grow, waiting might not be your best option.

Find the Right Loan for Your HVAC Business

Now that you’ve reviewed some of the biggest misconceptions about small business loans, you can make your next move with confidence. Whether you’re looking to start, grow, or acquire an HVAC business, financing can be a powerful tool—when used wisely.

Need help with acquisitions? Contact an HVAC business broker. They’ll have the most up-to-date list of HVAC businesses for sale in your region, and as an added bonus, they’re often well-versed in the SBA loan process.

The key is understanding your options, working with the right experts—lenders, brokers, and more—and choosing a loan that aligns with your goals. With the right financial strategy, you can set your HVAC business up for long-term success without unnecessary roadblocks.