T.A.G. Business Funding
T.A.G. Business Funding
HVAC Guide
Application timing is the single biggest leverage point for HVAC companies. The same business can qualify for $14K or $108K depending on when they apply.
HVAC Funding Center
This is why timing is the most important HVAC approval factor. Same company, same ownership, same credit — different 3-month statement windows produce wildly different results:
Underwriters use the 3 most recent bank statements. For HVAC, this means the months on your statements matter more than any other factor. Applying after peak season means your 3 recent months include August–October — your highest revenue window of the year.
| Application Window | Statements Included | Expected Advance | Rating |
|---|---|---|---|
| August–October | 3 peak/post-peak months | 150% of 3-month avg | Best |
| June–August | 2+ peak months | 100–130% of avg | Good |
| January–February | Post-heating, pre-AC | 100% of heating avg | Acceptable |
| March–April (dead season) | Lowest 3 months | 75% of low-season avg | Worst |
For HVAC, the 3-month average that determines your advance amount is entirely period-dependent. A $50K/month peak season HVAC company with a $12K/month dead season averages very differently depending on which 3 months are evaluated.
| Avg Monthly Deposits | Advance Range | Rating |
|---|---|---|
| Under $12,000 | Difficult to qualify | Low |
| $12,000–$30,000 | $9,000–$45,000 | Acceptable |
| $30,000–$65,000 | $22,500–$97,500 | Good |
| $65,000–$130,000 | $48,750–$195,000 | Strong |
| Over $130,000 | $97,500–$250,000+ | Excellent |
For HVAC, NSF frequency is evaluated in the context of when they occurred. An NSF in March (dead season) raises far more concern than one in July — because a July NSF may be an isolated exception, while a March NSF suggests the business is not managing its off-season cash flow correctly.
| NSF Pattern | Underwriter View | Rating |
|---|---|---|
| 0 NSFs across all 3 statements | Clean — best rates available | Excellent |
| NSFs only in dead-season months | Pattern concern — explain proactively | Flag |
| NSFs in peak months | Severe concern — cash management issue | Problem |
| NSFs across multiple months | Near-automatic decline or very high rate | Critical |
Stacking is riskier for HVAC than non-seasonal businesses because daily ACH payments continue through dead-season months when daily deposits are minimal. An HVAC company that can easily cover a $400/day payment in July may struggle with it in March.
| Active Positions | Concern Level | Rating |
|---|---|---|
| 0 positions | None — full capacity available | Best |
| 1 position with dead-season sustainability | Low — if daily payment ≤25% of dead-season avg daily deposits | Acceptable |
| 1 position but tight in dead season | High — daily payments may fail in March/April | Risky |
| 2+ positions | Likely decline or very small advance | Critical |
Apply after peak AC season when your statements reflect your highest revenue. 48-hour decisions.