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.
HVAC contractors use construction factoring to advance 80% to 90% of each certified application within 24 to 48 hours, funding expensive M&E equipment ordered upfront while main contractors pay on 45 to 60 day terms. More detail + scope
Summary
HVAC contractors work on some of the most expensive M&E packages on any construction project, with commercial air conditioning installations of £50,000 to £200,000. Chillers, AHUs, ductwork and controls are ordered and paid for weeks before installation, then billed to the main contractor on 45 to 60 day terms. Construction factoring advances 80% to 90% of each certified application within 24 to 48 hours.
This page covers
Construction factoring for UK HVAC contractors, M&E equipment costs, advance rates and main contractor payment terms
Not covered here
Specific provider reviews (see /providers/), general invoice finance education (see /guides/), wider construction (see /industries/construction/)
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.
Founder & Managing Director, Muswell Rose, founder and PSC of Best Business Loans Ltd
Adam is the founder and managing director of Muswell Rose and a founder of Best Business Loans Ltd, the company behind Market Invoice. He spent over three years as managing director of Penny, a UK invoice finance business, and his career runs through insurance, mortgages, commercial finance and fintech lending. He writes the Market Invoice library.
Last reviewed: 18 June 2026