Whether it’s to repair an emergency leak or upgrade an outdated plumbing system, homeowners and business owners often need financing for the work. Fortunately, loans for plumbers can help provide the cash needed to fund these projects.
Using a personal home improvement loan to finance plumbing projects can be a great way to avoid paying interest fees, and because most of these loans are unsecured, they don’t require homeowners to put up their homes as collateral for the debt. In addition, many online lenders offer low rates and flexible terms, so it’s possible to find a lending solution that fits your needs.
While credit cards can be a helpful tool for covering small gaps in working capital, they typically come with high-interest rates and require you to pay off the entire balance at the end of each month. Because of these limitations, they’re not the best option for large-ticket plumbing repairs and upgrades.
A home equity line of credit (HELOC) is a second mortgage that allows you to borrow against the equity in your home. While HELOCs offer lower interest rates than other forms of credit, they can be a risky form of financing for plumbers because, if you fail to make your payments, you could lose your home.
As a result, HELOCs are generally only suitable for homeowners with substantial equity in their homes who are comfortable putting up their property as collateral. In contrast, a business line of credit is a short-term loan that provides you with a maximum credit limit from which you can withdraw funds at any time. Business lines of credit also don’t require you to pay back the full amount at the end of each month.
If you own a plumbing company, offering customer financing can help to grow your business. By providing a superior customer experience, your customers will be more likely to give you top reviews and word-of-mouth referrals. In addition, offering competitive financing options will make it easier for your customers to work with you.
Some traditional lenders offer business loans for plumbers, but it’s important to compare the various offers before choosing a lender. Some companies, such as LightStream and ServiceTitan, offer online loans that allow you to check rates without affecting your credit score. These online loans are a good option for plumbing companies because they offer flexible terms, low rates, and no hidden fees.
Other lenders, such as GreenSky and Upgrade, offer unsecured installment loans that are ideal for plumbing companies. These loans don’t require tax forms or homeownership paperwork, and you can get approved within seconds by entering information in just a few fields. These options can be used to fund plumbing projects and equipment purchases, as well as other business expenses.