Invoice finance · Plumbing businesses
Invoice finance for plumbing businesses
Plumbing finance is asset and cash-flow lending for plumbing contractors, funding fitted-out service vehicles, jetters and camera equipment, and the materials and wages carried between invoicing and payment.
How invoice finance works for plumbing businesses
Plumbing subcontractors invoicing builders and commercial property managers can fund each invoice as it is raised rather than waiting out 45-day terms. This works best where the debtor book is commercial and reasonably concentrated in reliable payers; domestic service work paid on the day is not what invoice finance is for. Progress claims with certification and retention are harder to fund than straight trade invoices, and the retention portion is generally excluded from the advance.
The cash-flow pattern we plan around
Fast payment on domestic service work alongside 30–45 day progress claims on construction jobs, with trade account materials due on 30-day terms regardless.
What plumbing businesses typically fund
- Fitted-out service vans and utes
- Jetters, drain cameras and locators
- Pipe relining equipment
- Materials and trade accounts between invoices
- Apprentice wages and licensing costs
Invoice finance for plumbing businesses: the numbers
| Typical amounts | $20,000 – $5,000,000 |
|---|---|
| Term | 1–12 months |
| Indicative rates | 8% – 18% p.a. |
| Repayments | Settled when the customer pays each invoice |
| Speed | 24–48 hours per invoice once set up |
| Documents plumbing businesses usually need | ABN and plumbing licence details · 6 months of business bank statements · Quote for the vehicle, fit-out or equipment |
Rates are indicative, change without notice and depend on the lender, product, asset, term and your credit profile at the time of application. They are not an offer of finance. Comparison rates, where shown, are true only for the example given.
Key terms
Plumbing equipment finance
Plumbing equipment finance is secured lending for the tools of the trade — jetters, CCTV drain cameras, relining rigs and vehicle fit-outs — usually written over two to five years against the equipment.
Trade account gap
The trade account gap is the period between a plumbing supplier’s 30-day account falling due and the client paying the invoice for the job those materials were used on.
What is invoice finance?
Invoice finance (also called debtor finance or receivables finance) advances a percentage of an unpaid invoice’s value now, with the remainder paid when the customer settles, minus the financier’s fees.
Invoice finance vs invoice factoring
Factoring sells the invoice to the financier who collects from your customer; invoice discounting keeps collections with you and is usually confidential. Both are forms of invoice finance.
Questions from plumbing businesses
Can a plumber finance a fitted-out van or ute with the fit-out included?
Yes. Racking, drawers, pipe tubes, roof racks, a canopy and signage can be financed with the vehicle when quoted together, so the whole working vehicle settles at one rate. Plumbers with two years of ABN history are usually approved on low documentation within a day.
Can jetters, cameras and locators be financed?
Yes. Jetting units, drain cameras, pipe locators, excavation equipment and trailers are financed as equipment over three to five years, and several items can be bundled into one contract. A jetter and camera set-up often pays for itself in a few months of drain work.
How do plumbers fund materials on construction jobs paid in arrears?
Invoice finance against progress claims and a line of credit cover trade account materials and wages while builders take 30 to 45 days, and domestic service income keeps day-to-day cash moving. A broker sizes the facility to your mix of service and construction work.
Can a plumber get finance without tax returns?
Yes. Plumbers with an ABN of two years or more and clean credit are commonly approved for vehicles and equipment on low documentation up to around $150,000 to $250,000, and unsecured loans are approved on six to twelve months of bank statements. Larger amounts use financials.