There are a lot of options out there when it comes to loans for plumbers. There are business loans, startup loans, lines of credit, personal loans, and more. Figuring out which ones make sense for you can be confusing and time consuming.
Banks reject nearly as many loan applications as they approve, and they have strict requirements for applicants, including two years of tax returns and a track record of consistent growth. This can be frustrating for plumbers and plumbing businesses who need access to capital quickly. Alternative lenders, such as merchant cash advance providers, offer loans for plumbers and plumbing companies that have been rejected by banks.
The best loans for plumbers are ones that are tailored to their specific needs. Many plumbers need working capital, while others may need to pay for equipment, master plumber training, or other expenses related to their plumbing businesses. Different lenders have varying requirements for the loans they provide, including credit scores and debt-to-income ratios.
If you have excellent credit, a personal loan might be the right option for you. Some lenders, like LightStream, have low rates and no fees and also allow you to pre-qualify without a hard inquiry. Other lenders, like Upgrade, offer low minimum loan amounts and let you check your rate online without affecting your credit score.
Another option for those with poorer credit is a home equity line of credit (HELOC). This type of financing is secured by your house, which allows you to access funds as needed and only pay interest on what you use.
There are also loans for plumbers that are specifically designed to finance new tools and supplies. These types of loans often have higher interest rates than other loans, but they can be a good option for those who need to purchase new plumbing supplies and don’t want to wait to save up money or pay for them with cash.
Many plumbing equipment firms offer financing for their products, which can be helpful for those who need to replace older plumbing tools or get additional tools to increase productivity. These loans can help you grow your business and also give you peace of mind knowing that the tools you purchase are high-quality and will last for a long time. It’s important to remember that these kinds of financing are not always available for every situation, and they should be used as a last resort. It’s also a good idea to shop around to compare costs and terms for these types of loans to find the best one for you. With a bit of time, you can find the best loan for your plumbing business and its unique needs. You can even use a tool such as Figure to make the process easier by comparing offers from multiple lenders at once. Click here to get started.