Whether you’re a homeowner facing a clogged drain that can’t be unblocked by do-it-yourself measures, or a plumber who needs financing to cover unexpected costs or project expenses, there are many loan and financing options available. Depending on the type of financing you choose, there may be different requirements and conditions, including credit score and income verification, to determine eligibility.
Loans for Plumbing Professionals
There are 110,000 plumbing businesses in the United States, employing more than half a million people and generating $93 billion in revenue. As skilled professionals, plumbers are in high demand. However, business isn’t always steady, and cash flow can fluctuate. To grow their firm or help weather rough patches, plumbing companies need working capital loans and equipment financing.
For plumbing professionals who own their own company, an unsecured business line of credit can be a great choice. This type of financing is based on your own personal or business credit, with some lenders offering same-day loan approval and funds in just five days. You can use your business line of credit to finance a variety of business expenses, including equipment and inventory purchases, and interest is only charged on what you draw from your credit limit each month.
Another financing option for a plumbing business is a home equity line of credit, or HELOC. These are second mortgages that allow you to borrow against the equity in your home. The interest rates on HELOCs are lower than credit cards, and since it’s secured by your home, you’ll only pay on what you draw, and you won’t be required to make a full payment each month. However, the downside is that if you fail to repay your debt, or your home’s value falls, you could end up owing more than your house is worth.
A home equity line of credit can also be used as a financing tool for major plumbing projects or renovations, such as replacing pipes or fixtures. It’s best for larger repair or installation projects that require the services of a professional, such as repairing corroded copper pipes, replacing a water heater or sump pump, or installing that Jacuzzi tub that’s been on your wish list for years.
While you may be tempted to use a credit card to finance your next big plumbing project, these aren’t good options for financing a plumbing repair or purchase. Their high interest rates and credit card limits often result in you paying more than the original price of your products or service. Plus, you may wind up with a credit card balance that’s hard to pay off. A personal or unsecured loan, with a reasonable credit score and income verification, may be a better choice for your next plumbing project. This type of financing is easy to get online, and the approval process can be as quick as a few minutes. Personal loans also offer flexible repayment terms that are suited to the needs of many plumbing companies. loans for plumbers