A home’s plumbing system can require a major repair, which could be very costly. For homeowners with bad credit, it may be difficult to find financing for plumbing work, and even more challenging to make the payments.
While many people turn to their bank or credit cards for plumbing financing, these options often come with stringent requirements and high interest rates. The best option for a homeowner with bad credit who needs plumbing repairs is to seek out a loan from a trusted financing company.
There are a few different types of personal loans that can provide plumbing financing for bad credit. The most popular is the personal home improvement loan, which can be obtained from many financial institutions and lenders. These loans are based on the borrower’s credit score, income, savings history, and other factors. Many lenders also offer a variety of personal loan terms and repayment options to meet the needs of every customer.
Another type of plumbing financing for bad credit is a line of credit, which works like a credit card and can be used to pay for expenses. This type of plumbing financing is usually offered by banks and other financial institutions, but it can also be accessed through a few independent companies. The borrower’s credit score, savings patterns, career trajectory, and other factors are considered when a lender approves a line of credit for a homeowner.
Other types of plumbing financing for bad credit include an unsecured personal loan and an alternative lending solution called a merchant cash advance (MCA). The latter is not technically a loan, but rather an advance on your business’s future credit or debit card sales that will be paid back in a predetermined daily percentage of your business’s revenues. Unlike a business line of credit, an MCA is available to startup and pre-revenue plumbing companies, and offers a faster and simpler online application process.
Providing plumbing customers with financing options helps them afford their needed repair and improve their financial situation in the long run. It also increases the likelihood that a plumber will get paid in full. For example, a service company that integrates its customer financing with its workflow and dispatch software can automatically offer tiered payment options to standard and tankless water heater customers. The service tech simply selects the good-better-best options from the app, and the financing options are shown to the customer on a tablet.