HVAC companies often face significant Accounts Receivable (AR) challenges that can impact cash flow and overall financial health. As a professional collection agency, we specialize in helping HVAC businesses navigate these issues effectively.
We understand your industry quite well and based on our experience, here are the main reasons of your unpaid invoices. By partnering with a specialized collection agency like ours, you can overcome these obstacles efficiently and ethically. We’re committed to helping you improve your cash flow, reduce bad debts, and enhance your overall financial stability.
The numbers are brutal:
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The 90-Day Drop: An unpaid invoice is worth only 87% of its value after 90 days. By 120 days, it plummets to 33%. Waiting to collect is literally expensive.
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Restoration “Float”: The average restoration job takes 30-90 days to get paid by insurance. But if that check goes to the homeowner and they spend it, your wait time becomes indefinite.
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HVAC Insolvency: Financial mismanagement due to cash flow gaps is a leading cause of the 95% failure rate for new contracting businesses within 5 years. High overhead + low margins (often 6-12% net) + unpaid invoices = bankruptcy.
We are the industry specialists. Our highest recovery rates are for HVAC and Restoration companies because we understand the unique pressure points of your trade—from Mechanics Liens to insurance intercepts.
Recovering for HVAC Clients Nationwide: Contact Us
Understanding the unique challenges of the HVAC industry allows us to offer tailored solutions that address your specific issues.
Things you can do yourself:
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Seasonal Demand Leverage – Use peak heating/cooling seasons to encourage clients to clear dues for priority service.
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Equipment Repossession/Disablement – For leased systems, include clauses allowing repossession or remote shut-off if unpaid.
- Maintenance Plan Suspension – Pause or revoke ongoing service/maintenance agreements until overdue balances are cleared, giving customers incentive to pay quickly.
How we handle Collections for HVAC Companies
- Customized Collection Strategies: We develop strategies that align with your business model, whether you’re dealing with large commercial projects or a high volume of small residential accounts.
- Efficient Dispute Resolution: Our team is skilled in resolving billing disputes quickly, minimizing delays in payment and preserving client relationships.
- Advanced Skip Tracing: We utilize cutting-edge skip tracing techniques to locate clients who have changed addresses or contact information, ensuring no account falls through the cracks.
- Credit Risk Assessment: We assist in conducting thorough credit checks on new clients to mitigate the risk of future bad debts.
- Regulatory Compliance: Our processes are fully compliant with industry regulations and laws, protecting your business from legal complications.
- Flexible Payment Arrangements: We negotiate payment plans that consider your clients’ financial situations, increasing the likelihood of recovering debts.
- Enhanced Communication: Our professional approach ensures clear and respectful communication with your clients, which can improve payment rates and client retention.
- No Recovery, No Fee Policy: Our services are contingency-based—you incur no costs unless we successfully recover the owed amounts.
The Specific Challenges You Face (And How We Fix Them)
1. The “Insurance Check” Heist (Restoration)
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The Stat: 100% of restoration companies report revenue loss due to payment delays or disputes, and 34% take more than a month to recover financially from significant cash flow disruptions.
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The Fix: We don’t just send letters. We use skip-tracing to locate homeowners who cashed your insurance check and leverage Theft by Conversion statutes to force repayment.
2. The “Job Complete” Dispute (HVAC)
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The Stat: 27% of invoice delays in trade services are due to disputes over quality or terms.
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The Fix: We separate legitimate warranty issues from bad-faith stalling. If they signed off on the work, we enforce the contract—often utilizing Confession of Judgment clauses (where legal) to bypass frivolous disputes.
3. The Customer Acquisition Cost (CAC) Trap
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The Stat: Acquiring a new HVAC customer costs $200–$350. Losing just one customer to a bad collection experience wipes out the profit from 5 future service calls.
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The Fix: Our “Diplomatic” Phase 1 retains customers. We recover the funds without burning the bridge, allowing you to keep that hard-earned client for future maintenance contracts.
4. The “90-Day” Profit Killer
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The Stat: An invoice that is 90 days overdue is worth only 87% of its face value. By 120 days, it drops to 33%.
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The Fix: We offer a Flat-Fee Early Intervention service (approx. $15/account) that targets accounts at Day 60, recovering funds while they are still highly collectible—at a fraction of the cost.
5. The “Seasonal” Cash Flow Gap
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The Stat: HVAC companies that manage seasonal cash flow poorly are 30% more likely to fail.
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The Fix: We structure payment plans that bridge the gap. During “shoulder seasons” (Spring/Fall), we secure consistent monthly payments from past-due accounts to smooth out your revenue peaks and valleys.
6. High Failure Rates for New Contractors
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The Stat: 95% of new restoration and contracting businesses fail within 5 years, largely due to cash flow mismanagement.
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The Fix: We act as your back-office safety net. By outsourcing collections, you reduce overhead and ensure that every completed job actually turns into revenue, keeping you out of that 95% statistic.
Common AR Challenges Faced by HVAC Companies
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