When a plumber wants to purchase the best equipment for their business, they usually need working capital. This is money that goes into the business and comes out to pay for things like plumbing supplies, equipment rentals, advertising, labor costs, and other business expenses. Working capital loans are great for a plumber because they allow them to buy what they need to grow and improve the quality of their work.
Loans for plumbers are available through a variety of different sources. Some of these include credit cards, personal loans, and home equity lines of credit. In addition, there are some larger plumbing companies that offer customer financing options directly.
In order to get the best plumbing financing rates, it is important for a plumber to have an excellent personal credit score and a solid history of business. Some lenders will even require a business to be in operation for at least six months in order to qualify for plumbing financing. While this isn’t always an issue for experienced plumbers, it may be for newer or smaller plumbing businesses.
There are many different lenders that can provide financing for plumbing, and each lender will have its own terms, interest rates, and qualifications. For example, LightStream offers a line of credit to plumbers with good credit and the ability to save. The company will look at a plumber’s credit history (credit cards, auto loans, etc.), ability to save, stable income, and a repayment history with no delinquencies or problems.
One of the best plumbing financing options for homeowners is a Home Equity Line of Credit, or HELOC. This is a second mortgage that is secured by the equity in a homeowner’s home. The equity is then revolving, meaning the borrower can draw from it again and again. The downside of a HELOC is that, if a homeowner fails to make payments on time, the bank can foreclose on the home and take control of the assets in the house.
While a HELOC is a great option for a plumber, most homeowners are reluctant to put up their home as collateral for plumbing financing. A personal loan can be a better option for these situations, as it is unsecured and typically requires only income verification and a simple online application to approve. Companies like GreenSky and Service Finance have made this process even easier, allowing customers to submit their income information and find out in just a few seconds whether they are approved for plumbing financing.
Providing customers with easy plumbing financing is a great way to boost your sales and encourage repeat business. A recent study found that customers who purchase plumbing products from a company that integrates financing into their mobile app are more likely to return for future repairs and recommend the business to others. For this reason, many plumbing services are integrating financing into their mobile apps to give their customers the option of buying what they need today and paying for it over time.
