Industry guide
The cash-flow picture, the calendar of pressure points, and the right funding page for the problem in front of you.
✓ Checking what you qualify for does not affect your credit score.
At Merchant Fund Express, this guide sets out how the money moves in plumbing and HVAC contractors, when cash gets tight and which funding structures tend to fit each need.
A plumbing or HVAC contractor can be profitable and still have an empty account on a Thursday. Reading the two sides of that equation is the first step in choosing the right capital.
Peaks in extreme heat and cold; slower in mild shoulder seasons.
The right capital depends on which gap you are actually filling. Here is the usual pattern of pressure for a plumbing or HVAC contractor:
These are the needs we see most often, with the structure that tends to fit each one.
Usually fits: a line of credit or working-capital advance.
Usually fits: equipment financing.
Usually fits: a short working-capital draw.
Underwriting for revenue-based business funding reads bank activity: deposits, average daily balance, negative days and any open advances. For a plumbing or HVAC contractor, the lines that matter are:
The usual trap: carrying too much seasonal inventory and equipment payments into the mild months. If this is your situation, say so on the application; it is better read as context than discovered as a surprise. See the published requirements for the exact thresholds. The minimum FICO is 500, and the better your credit, the better your offer.
Take a plumbing or HVAC contractor with about $100,000 in monthly revenue asking for $60,000. These figures are an illustration of how the published terms work, not an offer; your offer shows the actual amount, schedule and total cost before you sign.
| Illustration | Figure |
|---|---|
| Request | $60,000 |
| Monthly revenue assumed | $100,000 |
| Line of credit: 2.49% fee on a single draw of that size | $1,494 |
| Term loan cap: 15% of annual revenue | $180,000 (this request fits under it) |
| Merchant cash advance at an example 1.30 factor: total payback | $78,000 |
| … spread over about 26 weeks: weekly remittance | $3,000 |
| … or about 126 business days: daily remittance | $619 |
Compare any offer on total dollars repaid and on the rhythm of payments, not on a single rate. See the factor-rate calculator to run your own numbers.
Every page below is written for plumbing and HVAC contractors. Start with the problem you have this month.
Yes. Plumbing and HVAC contractors are an eligible industry. Sole proprietors can apply, the minimum FICO is 500, and the better your credit, the better your offer. Details are on the plumbing or HVAC contractor qualification page. Merchant Fund Express shows the exact amount, schedule and total cost in your offer before you sign.
A person reviews your revenue, time in business and bank activity, and a decision is typically same day. Approved files are usually funded the next business day. Merchant Fund Express publishes its terms and thresholds before you apply.
It depends on the need. For equipment and inventory for the season, a line of credit or working-capital advance tends to fit; for service vans and tools, equipment financing. The structure follows the problem, so start from what the money is for.
Deposits and their consistency, average daily balance, negative days and NSFs, and any open advances. A mix of daily service deposits and larger installation payments.
Apply with Merchant Fund Express: same-day decision, and applying takes a few minutes without affecting your credit score.
