How to Offer Finance for Air Conditioning Systems

Why Offer Finance for Air Conditioning Systems?

Installing air conditioning is a significant investment for many UK businesses and homeowners. By providing finance options, you can:

• Make systems more affordable for your customers
• Increase conversion rates and average order value
• Differentiate your business from competitors

"Flexible payment options can be the tipping point for a customer sitting on the fence."

Types of Finance Options

Here are the most popular finance models used in the air conditioning sector:

1. Interest-Free Credit (0% APR)

• Customers pay in instalments with no added interest.
• Attractive for short or mid-term repayment periods (usually up to 24 months).

1. Interest-Bearing Credit

• Regular finance over longer terms (2-10 years) with competitive APR.
• Useful for higher-value or commercial installations.

1. Buy Now, Pay Later

• Customers can defer their first payment (often 6-12 months).
• Great for those managing cashflow.

1. Leasing (Commercial Customers)

• Businesses pay a fixed amount each month to rent the system.
• Ideal for commercial clients who want flexibility and tax benefits.

Quick Tip:
Providing multiple finance options caters to different customer needs and budgets.

How to Set Up Customer Finance for Air Conditioning Systems

Follow these steps to start offering finance to your customers:

1. Find a Trusted Finance Broker or Lender

• Choose a UK FCA-authorised finance broker (like Kandoo).
• Consider brokers with experience in the HVAC industry.

2. Get FCA Authorisation (If Required)

• Some finance options require your business to be authorised by the Financial Conduct Authority (FCA).
• Check if your finance partner offers a regulated route where authorisation is not needed.

3. Integrate Finance Into Your Sales Journey

• Train staff to introduce finance options early in conversations.
• Integrate finance calculators and application forms on your website.
• Add point-of-sale finance to in-home quotes or sales tools.

4. Set Up Documentation & Reporting

• Ensure clear contracts explaining terms, repayments, and rates.
• Stay on top of compliance paperwork and financial reporting.

Case Study:
After introducing point-of-sale finance, a Midlands-based air conditioning installer increased sales conversion by 18% in just six months.

Compliance & Customer Protection

Dealings in consumer credit are regulated by the FCA to protect customers. You must:

• Use clear, jargon-free language in all documentation
• Present all key terms and APRs openly
• Only recommend suitable, affordable agreements
• Ensure GDPR compliance when handling personal data

"Openness and transparency build trust, helping customers feel comfortable choosing finance."

Advantages for Your Business

• Boosted Sales: Customers are more likely to buy when they can pay monthly
• Larger Orders: Finance encourages add-ons (smart controls, maintenance packages)
• Immediate Payment: Get paid upfront by the finance provider, even as the customer pays over time
• Customer Loyalty: You’ll be remembered for making major improvements affordable

Marketing Your Finance Offer

Ways to showcase your finance options:

• Feature them on your website homepage and product pages
• Use an online finance calculator to show example repayments
• Mention finance on social media and in advertising
• Train your sales and installation teams to explain the benefits

Common Customer Questions

Q: Will applying for finance affect my credit score?
A: Most lenders only do a "soft search" at the initial stage, with a full check before signing.

Q: Can self-employed or limited company directors apply?
A: Yes! Many finance providers cater to both consumer and business customers.

Q: Is it complicated to apply?
A: The biggest finance brokers offer an online process that takes just minutes.

Remember: Partner with a broker who provides support to both you and your customers every step of the way.

Get Started Today

Adding finance options to your business could transform your sales and keep you ahead of the competition. Partner with a reputable finance broker who understands the HVAC industry, and let your customers enjoy the comfort of air conditioning sooner.

Ready to learn more? Contact Kandoo for a free consultation on offering air conditioning finance.