Canyonhill Advances, a small-business funding service in Mankato, Minnesota, covers business loans for plumbing and HVAC contractors: service van and equipment financing, parts and unit stock, working capital for commercial and new-construction jobs, buying an HVAC business and what partners review. Blue Earth County, MN had 31 such contractors with employees in 2023 (CBP).
At a glance
- Plumbing, heating and AC contractors, Blue Earth County, MN
31 (CBP 2023)
- Employees, March 2023
392 (CBP 2023)
- Share under five employees
45.2% (CBP 2023)
Van stock for service calls, draws for installs
A plumbing or HVAC company can run two kinds of work. Service calls are short, paid on completion, and depend on a stocked van. Installation work, such as new construction rough-ins, system replacements or commercial projects, involves larger material and equipment orders and payment on a builder's or owner's schedule. Each has its own cash pattern.
Plumbing contractor business loans: what Mankato, MN owners should know
Partners reading a plumbing contractor's request look at the split between service and installation revenue, the receivables from builders and commercial clients, and the van fleet. A company whose revenue comes mostly from a few builders will be asked about that concentration, because one slow payer can stretch the whole business.
- Separate service and installation revenue in the books.
- Keep receivables aging by customer.
- List vans and equipment with balances owed.
Plumbing financing options for Blue Earth County, MN businesses
| Cost | Structure that fits |
|---|---|
| Service vans and their shelving | Equipment financing |
| Jetters, cameras, pipe threaders | Equipment financing |
| Parts and replacement units on hand | Inventory financing or line of credit |
| Payroll on builder and commercial jobs | Working capital or line of credit |
| Shop expansion or a second location | Term loan |
HVAC financing options: what Mankato, MN owners should know
HVAC companies carry costly units, from furnaces and air handlers to condensers and rooftop units. Buying units ahead of installation ties up cash; distributors may offer terms that reduce the gap. A line of credit can carry units between purchase and the customer's payment, and working capital can cover payroll on longer jobs.
HVAC equipment loan in Mankato, MN
Tools and equipment for HVAC work include recovery machines, vacuum pumps, combustion analyzers, lifts and the vans that carry them. These are financed through equipment financing on one itemized quote or unit by unit.
Illustration only, invented figures: two outfitted service vans at $52,000 each plus $6,400 of diagnostic tools make a $110,400 request (our arithmetic: 2 x $52,000 + $6,400).
Commercial HVAC loan around Mankato, MN
Commercial HVAC jobs mean larger equipment orders, longer schedules and progress billing, often with retainage. The general contractor or owner may pay 30 days or more after each invoice. A partner reviewing a commercial job request will ask for the contract, the schedule of values and the payment terms. Size the funding to the costs carried before the first payments arrive.
Customer financing for homeowners
Offering financing to homeowners for a system replacement is a separate arrangement, usually through a consumer finance company that pays the contractor and collects from the homeowner. It can help close jobs but comes with fees the contractor pays. It does not fund the contractor's own business costs, which is what Canyonhill's partners consider.
How much does it cost to buy an HVAC business?
Canyonhill does not publish valuations. The price of an HVAC business depends on its service agreements, its technicians, its equipment and vans, and how much of its revenue repeats. Recurring maintenance agreements can be a valued part, because they bring customers back for repairs and replacements. A business that depends on the owner's own selling is worth less if the owner is leaving.
- Count active service agreements and their renewal rate.
- List technicians, their licenses and who plans to stay.
- Inspect vans and equipment.
- Split revenue by service, replacement and new construction.
A term loan can fund the purchase, often with a seller note for part of the price.
Plumbing and HVAC in the Blue Earth County, MN Census counts
Plumbing, heating and air conditioning contractors had 31 employer establishments in Blue Earth County, MN in 2023, with 392 employees and $29.8 million in annual payroll; 14 of them, or 45.2%, had fewer than five employees (CBP 2023, NAICS 238220). ZIP 56001 had 22 of the 31 (ZBP 2023). Our arithmetic from those totals: an average of about 12.6 people per contractor, and around $76,125 in payroll for each of them.
Nonemployer Statistics counted 18 plumbing and HVAC businesses without paid employees in 2024, with $2.3 million in receipts. It is a separate program from the employer count.
Licenses on the request
Plumbing and HVAC work in Minnesota involves licensing, and a partner may ask for license numbers as part of its review. The Minnesota contractor license lookup guide explains where to find license records.
Parts stock and the van shelf
Each service van carries a stock of fittings, valves, filters and parts. Across a fleet, that stock is a significant amount of money, and it shrinks if it is not tracked. A company that counts van stock regularly can show a partner exactly what it holds, which matters for an inventory or line of credit request.
Maintenance agreements as recurring revenue
Service agreements, in which customers pay a set amount each year or month for inspections and priority service, give a plumbing or HVAC company revenue it can count on. They also bring repair and replacement work. A partner reading a request will value an expanding base of agreements, so keep a count of active agreements and renewals by month.
Records a partner may request for a plumbing or HVAC company
- Bank statements and tax returns.
- Revenue split by service and installation.
- Receivables aging by builder and client.
- Van and equipment list with balances.
- Service agreement counts.
Related: the contractor business loans page, the painting business page, county figures on the Mankato, MN page and all trades under funding by industry.
By Canyonhill Advances ยท Updated