Microf, Carrier Provide ‘Rent-to-Own’ HVAC Financing

Aug. 25, 2015
Microf now offers its rent-to-own solution through Carrier’s extensive distributor and dealer network.  

  Homeowners who are unable to obtain financing through traditional channels, will now be able to obtain much-needed heating and cooling products, thanks to a “rent-to-own” option offered by Microf, LLC and Carrier.

     In July, Carrier and Microf ­— a provider of financing solutions to the HVAC  industry — signed a strategic agreement to provide an alternative to traditional financing for qualified Carrier heating and air conditioning customers. Microf now offers its rent-to-own solution through Carrier’s extensive distributor and dealer network.

    “Carrier is pleased to work with Microf to provide a rent-to-own HVAC option to our customers,” said Matthew Pine, vice president, marketing, Carrier residential HVAC. “This strategic business relationship benefits customers and dealers by giving them the broadest range of options to meet their heating and cooling needs.”

     Microf will support dealers and their customers with a quick, user-friendly application process, a flexible product offering and specialized HVAC expertise. The rent-to-own option will be available for customers who meet minimum financial standards. Microf’s alternative to traditional financing enables more customers to enjoy improved comfort and air quality with an affordable monthly payment.

    “We at Microf are excited about working with Carrier and the opportunity to expand our dealer network and customer base,” said Jay Kimbro, Microf co-founder. “Our unique rent-to-own concept will ensure more consumers are able to meet their heating and cooling needs with an affordable monthly payment.”

     “Until Microf came along, there was no way to finance customers with lower credit scores or no cash reserves,” says Jesse Barrack, Microf chief marketing officer. “They  started with a couple dealers in a pilot program in south Georgia. It worked very well. The territory manager for Mingledorff’s, who is the Carrier/Bryant distributor in Georgia found out about it from those dealers, and that relationship snowballed from there. It’s an exclusive agreement with Carrier. From our standpoint we’ll only deal with Carrier’s distributors and dealers, and they’ll deal only with Microf as a rent-to-own partner," Barrack said.
“We purchase the system from the contractor, including labor. We create a rental agreement and rent the system to the homeowner, for some kind of flexible payment term, from 24 to 58 months. We actually own the system until the homeowner makes the final payment. From the contractor’s perspective, it’s still the same. We pay the contractor after installation just like a traditional finance company.”

     In May 2015, Microf entered into an agreement with Rotunda Capital Partners, LLC (Rotunda Capital), a lower-middle-market private equity firm, and with BrandBank, a full service bank with strong roots in the Atlanta area, for a combined $28 million debt and equity raise that will provide Microf with the funding needed to continue its expansion in the HVAC market.