Business Loans for Plumbing Companies: Trucks, Equipment and Growth
Explore financing options for plumbing businesses including service vehicle loans, equipment financing, and working capital for commercial projects.
Financing for Plumbing Business Growth
Plumbing companies operate in a recession-resistant industry—people always need working pipes. However, growing a plumbing business requires substantial capital investment in vehicles, equipment, and workforce. Whether you are an owner-operator looking to hire your first employee or a multi-truck operation expanding into commercial work, the right financing supports sustainable growth.
The plumbing industry generates approximately $130 billion in annual revenue in the United States, with thousands of small businesses competing for residential and commercial work. Lenders view established plumbing companies favorably due to the essential nature of services and recurring maintenance revenue.
Common Financing Needs for Plumbers
Plumbing businesses require capital for various operational and expansion purposes.
- Service vans and trucks equipped with pipe racks and storage
- Pipe threading machines and drain cleaning equipment
- Hydro-jetting systems ($15,000-$40,000)
- Video inspection cameras and locating equipment
- Excavation equipment for underground work
- Working capital for commercial project payroll
- Inventory of common parts and fixtures
- Training and certifications for new specialties
Best Loan Products for Plumbing Companies
Different financing products address specific plumbing business needs.
| Loan Type | Best For | Amount Range | Typical Terms |
|---|---|---|---|
| Equipment Financing | Vehicles, major equipment | $10,000-$250,000 | 3-7 years, 6-15% |
| Business Line of Credit | Working capital, parts inventory | $25,000-$200,000 | Revolving, 8-24% |
| Term Loans | Expansion, multiple hires | $50,000-$500,000 | 2-7 years, 7-18% |
| SBA 7(a) Loans | Major expansion, acquisition | $100,000-$5,000,000 | 10-25 years, 7-10% |
| Invoice Factoring | Commercial receivables | 80-95% of invoice | Fee: 1-5% |
| Vehicle Loans | Service vans and trucks | $30,000-$80,000 | 4-6 years, 5-12% |
Qualification Requirements
Lenders evaluate plumbing businesses based on several key factors.
| Factor | Minimum Requirement | What Helps Your Application |
|---|---|---|
| Credit Score | 600+ | 680+ qualifies for best rates |
| Time in Business | 1 year | 2+ years significantly helps |
| Annual Revenue | $100,000 | $250,000+ opens more options |
| Licenses | State/local plumbing license | Master plumber license |
| Insurance | General liability | Full coverage + bonding |
| Banking History | 6 months statements | Consistent deposits, positive balance |
What Lenders Look For
Beyond basic qualifications, lenders evaluate plumbing companies on industry-specific factors.
- Mix of residential vs. commercial work (commercial provides stability)
- Service agreement and maintenance contract revenue
- Customer concentration (relying on few large customers increases risk)
- Journeyman and master plumber credentials
- History of on-time project completion
- Reviews and reputation in the market
- Seasonal revenue patterns and cash reserves
Building a portfolio of recurring service agreements—water heater maintenance, commercial building inspections, drain cleaning contracts—creates predictable revenue that lenders value highly.
Example Scenario: Growing from Residential to Commercial
Mike runs a 3-year-old residential plumbing company generating $450,000 in annual revenue with two service vans and three employees. He wants to pursue a commercial contract requiring a dedicated van, additional equipment, and a fourth plumber.
| Financing Need | Amount | Product Used | Monthly Payment |
|---|---|---|---|
| New service van (outfitted) | $55,000 | Equipment loan, 5 years, 8% | $1,115 |
| Hydro-jetting system | $25,000 | Equipment loan, 4 years, 10% | $634 |
| Working capital (3 months) | $40,000 | Line of credit, 12% | Interest only until drawn |
Total financing: $120,000. The commercial contract worth $180,000 annually covers the debt service while providing profit. Mike can pay down the line of credit as contract payments arrive.
Ready to Grow Your Plumbing Business?
Whether you need a new service truck, specialized equipment, or working capital for larger projects, financing options exist for plumbing companies at every stage.
Apply in minutes to explore your options. We match you with lenders who understand the trades and can move quickly on equipment and working capital needs.
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Read more →Important Disclosure
Not Financial Advice: The information provided in this article is for general informational purposes only and does not constitute financial, legal, or professional advice. You should consult with qualified professionals before making any financial decisions.
No Guarantee of Financing: Liminal Lending Co. is a business loan marketplace that connects borrowers with third-party lenders. We are not a lender and do not make credit decisions. Submitting an application does not guarantee approval or funding. Loan terms, rates, and availability vary by lender and are subject to borrower qualifications and lender criteria.
Third-Party Lenders: All loan products are offered by independent third-party lenders. Liminal Lending Co. is an Independent Sales Organization (ISO) and receives compensation from lenders for successful referrals. Terms and conditions of any loan are between you and the lender.
Rate Information: Rates, terms, and fees mentioned in this article are estimates based on publicly available information and may not reflect current market conditions or specific lender offers. Actual rates depend on creditworthiness, business financials, and lender policies.
Information May Change: Financial markets, lending regulations, and economic conditions are subject to rapid change. While we strive to keep our content accurate and up-to-date, information in this article may become outdated. Always verify current rates, terms, program availability, and regulatory requirements with lenders and official sources before making financial decisions.