HVAC, plumbing, roofing working capital needs?

May 05, 2025
by a searcher from New York University - Leonard N. Stern School of Business in New York, NY, USA
I have been looking for reasonably priced HVAC companies in the NY/ NJ area, but came across a business that does A/R financing for small/medium-sized businesses. They pay ~98% of the A/R today and receive 100% of the A/R when it's paid by the customer.
A growth area they identified is providing A/R financing for essential service companies e.g. HVAC, plumbing, roofing, etc. and I know the cashflow conversion cycle can be painful in the industry. The cost for the service is a little higher than a bank line of credit, but the service is faster, easier, and only used as needed.
My question is: Do any current owners/ operators of HVAC or similar service businesses use A/R financing to solve their cash flow or working capital needs? Happy to have a chat with anyone with a view or experience here. Thanks in advance!
from Columbia University in Oakland, CA, USA
from University of Illinois at Urbana in Chicago, IL, USA