Balancing Back-to-School, Rising Costs, and Vital HVAC Upgrades: Why Financing Matters More Than Ever

Ask any HVAC contractor about their customers’ biggest hurdle, and they’ll likely mention the struggle to make major purchases at times when budgets are stretched thin. This time of year, for some families, this can mean college tuition payments and housing bills, plus other necessities as they send their kids back to school.

Now add in the rising costs of daily life, and it’s easy to see why some homeowners may be hesitant to pile on more financial burdens in the fall. That is one reason some may ultimately decide to delay a new HVAC upgrade or other major home improvement purchase.

But now, many will no longer have to make these tough choices. That’s because more and more contractors are easing this decision-making process by offering financing. I work with thousands of contractors and regularly hear firsthand how flexible financing is eliminating the need for homeowners to lay out several thousand dollars up front for a new system. Now, with the choice to spread payments over time, they can move forward on these projects without jeopardizing priorities like tuition, mortgages, or other bills.

In Synchrony’s last Major Purchase Study, 75% of shoppers making a big-ticket purchase said they are comfortable financing through a retailer’s credit program. Consumers are also taking charge by proactively researching financing options before buying, with 78% beginning their research online. What this tells us is that shoppers are not just embracing financing, they are making it a key criterion for selecting a contractor and using it to make major purchases like high-efficiency systems, advanced filtration and extended warranties.

And consumers aren’t the only ones who benefit. Contractors who showcase their financing, including on their websites, are likely to close more deals and drive higher average order values. Our study found that Synchrony cardholders spent an average of 155% more on their home improvement projects than customers who paid another way.

Contractors are also realizing stronger margins while boosting customer loyalty. Our study found that, in addition to spending more with businesses that accept credit, 49% of big-ticket shoppers said they are likely to shop at the same store again, and 50% said they are extremely likely to reuse the card. In other words, financing isn’t just a tool to close deals, it’s a way to build long-term customer relationships and ongoing revenues.

Beyond these benefits, financing also helps smooth out the peaks and valleys of the HVAC business. The industry is naturally seasonal, with demand surging during periods of hot and cold weather and then dipping in the other months. That’s when profit margins dip and businesses can sometimes struggle to retain employees. With financing programs, contractors can maintain steady cashflow by helping families move forward with upgrades when they might otherwise wait.

Financing makes it possible for families in the Midwest to replace furnaces before winter rather than risk a system failure by the time the kids make it home for the holidays. It enables cash-strapped parents in the Sunbelt to invest in reliable cooling while also making tuition payments. And it gives contractors the confidence to expand crews once financing-driven projects begin flowing more steadily.

Looking ahead, financing won’t just support growth — it will drive it. Homeowners are becoming more informed and selective, and many expect financing options as part of the service, so they no longer need to delay major purchases. Contractors who make financing simple, transparent, and fair will stand out, earning loyalty, referrals, and resilience even in volatile markets.