Contractors (all trades)
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Funding for plumbing contractors
Service plumbing is paid at the door; construction plumbing is paid when the general contractor is paid. Most plumbing companies do both, which is why they need two different tools rather than one big one.
How the money moves in this trade
Service calls and repipes generate card and check revenue within days. New-construction rough-ins and top-outs are billed per phase to a general contractor who pays on the owner’s draw schedule, often 30–60 days after your invoice and minus retainage. Your truck stock (fittings, water heaters, fixtures) is bought on supplier terms. The gap opens when construction work grows faster than service work: you are stocking and staffing for GC jobs on a payment calendar you do not control.
Two worked scenarios
Scenario A: three rough-ins billed, GC pays in 55 days
A hypothetical shop invoices $48,000 for three rough-ins and needs $22,000 to cover the crew and materials until the GC pays. Invoice financing against those invoices (hypothetical 2% per 30 days, 80% advance) advances about $38,400 and costs roughly $1,760 if the GC pays on day 55. The cost tracks the GC’s slowness, which is the actual problem.
Scenario B: second service truck
A stocked service truck is an asset with resale value. Finance it as equipment over its life (hypothetically about $720 a month on a $38,000 truck at 11% over 5 years) rather than taking a 6-month advance that debits weekly whether or not the truck is busy.
Hypothetical numbers, labeled as illustrations; not quotes.
What fits what
| Need | Usually fits | Usually doesn’t |
|---|---|---|
| GC receivables and retainage | Invoice financing | Daily-pay advance |
| Trucks and jetters | Equipment financing | Advance |
| Truck stock and water heaters | Supplier terms; small line | Advance |
| A one-week payroll gap | Line; short advance only with an exit | Stacking |
Questions specific to this trade
- Does the GC contract allow assignment of receivables (needed for factoring)?
- What is the retainage percentage and release condition on each job?
- Will the supplier extend terms on a large water-heater order for a multi-unit job?
- Does a lien on my trucks conflict with an existing equipment loan?
Watch for. Pay-when-paid clauses can stretch GC receivables beyond what a factor will advance; read them before bidding.
What Fast Mula is and isn't. Fast Mula helps you compare business-funding structures and submit one inquiry. Nothing on this site is an offer, approval, guaranteed rate, or guaranteed timeline. Any funding depends on a provider's own review, and terms vary by state.
Common questions
Can a plumbing company factor invoices to a general contractor?
Often yes, if the contract permits assignment and the GC is creditworthy. Retainage is typically excluded from the advance.
Related
Invoice financing
Financing vs. factoring.
Payroll funding
Crew pay before the draw.
HVAC contractors
Installs, shoulder seasons, distributor limits.
Electrical contractors
Switchgear deposits, retainage, bonding.
Plumbing contractors? See what fits your jobs
Tell us about the work, the billing cycle, and the gap.