plumber business loan

Business Line of Credit for Plumbers

Although there are close to half a million licensed plumbers in the U.S., small businesses dominate the industry, with 60% of plumbing companies employing one to four employees. With a low barrier to entry and lots of opportunity—an annual growth rate of 4% expected through 2029—working as a plumber or even starting a plumbing business is an attractive option.


Since consumers have plenty of choice when it comes to hiring a plumber, simply relying on skill alone may not be enough to be successful. Strong, consistent advertising is a must, as is having the appropriate manpower, a reliable fleet and a fully stocked inventory—and all of that requires capital. Securing a business line of credit for plumbers may be appropriate to survive during a slow period or simply continue to grow the business.


What To Consider Before Applying for a Plumber Business Loan 

Plumbers with existing businesses will find it easier to get funding than those just starting out. They have a track record that can help predict cash flows and assets to pledge such as parts, vans or a physical location. Those looking to start a new business will have to fund startup costs such finding a building, obtaining permits and even investing in inventory—and without a track record may be asked to pledge personal assets to secure a loan.  


Why Business Line of Credit Loans Work Well for Plumbers

The beauty of a business line of credit for plumbers is that they get access to a pool of funds up to a set amount whenever capital is needed. Plumbers have the ability to draw out funds and repay them (with interest) over and over again—the line of credit is there to address cash flow gaps, a need for additional working capital or any other emergency or opportunity.


What Other Business Loans May Plumbers Want to Consider

While a business line of credit has plenty of benefits, there are other business loans that may be right for plumbers, including:

  • Traditional term loans—A lump sum of capital that is paid back with regular installments at a fixed interest rate
  • Working capital loans—A loan that can assist with the daily costs of operating the business
  • Merchant cash advances—An upfront sum of cash received against the business’s future credit and debit card revenues and repaid by a predetermined daily percentage of those revenues
  • SBA loans—The hardest type of loan for which to qualify, providing cash to expand a business, increase or replace inventory, advertise, consolidate debt and even pay taxes


The Bottom Line


Opportunities abound for plumbers and are only going to increase as time goes by. Whether you seek to start a plumbing business or expand your existing business, not having the funds to move forward should not be a reason for you to stagnate. There are plenty of options out there to secure the funding you need to get “unclogged” and operate a successful plumbing business.


Clear Skies Capital has helped many plumbers determine the business loan that’s best for them and get the financing they need in a timely fashion. Contact us today at 800-230-9822 to discuss your company’s needs.