What Are the Best Loans For Plumbers?

The plumbing industry makes up one of the most diverse and reliable segments of America’s economy. It provides jobs for 380,000 professional plumbers and has room for growth. However, growing a business from a startup to the next level requires more capital than what the average plumber can save over time. That’s why it’s important for plumbers and plumbing companies to have access to a wide range of loan options that help them cover all their costs, including working capital loans for small businesses.

What are the Best Loans for Plumbers?
Having the right tools for the job is crucial to any plumbing company. However, purchasing and repairing these tools can be costly. In order to keep a steady flow of customers and maintain the quality of service, many plumbing companies look to purchase equipment financing. This allows them to get the tools they need without having to pay up front and instead make payments over time.

Another popular source of plumbing financing is a personal loan. This type of lending is unsecured and only uses the borrower’s credit score to determine eligibility. A personal loan can also provide flexible repayment terms, so if the borrower is struggling with their finances this type of lending could be helpful.

A home equity line of credit (HELOC) is a form of plumbing finance that works like a credit card. The HELOC lender will hold the equity of your house as collateral, meaning if you fail to make the payments, they can use the equity in your home to pay back what you owe. This type of plumbing finance is useful if you’re unsure how much money you will need for a particular project because it’s easy to access and can be used as needed.

The simplest type of plumbing finance is a short-term working capital loan. These are ideal for working capital needs because they typically have low interest rates and quick approvals. They’re most effective for small- to medium-sized plumbing businesses that have a good business credit score and two years of consistent revenue.

If your plumbing business is looking to buy out a partner or take on an employee, an SBA Express loan may be the best option for you. These loans can provide up to $106 million in funding for a new or existing plumbing business. The funds can be used for a variety of purposes, such as buying out a partner, expanding into new markets or upgrading equipment.

Offering customer financing can increase your bottom line, especially if you’re selling high-ticket items such as water heaters. One plumbing service company saw a significant jump in their standard and tankless water heater conversion rate after implementing better training and integrated customer financing. Integrated customer financing is made easier with ServiceTitan Mobile, which automatically displays the available loan options to the customer when the plumbers are selecting products for their job. This gives the customer a convenient, seamless experience and makes it more likely they will buy your product.