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 a 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 shown are indicative ranges observed across our lender panel for the period stated. They are not an offer or quote. Your rate depends on your business, the lender, the amount, the term and the security offered. The lender makes the final credit decision.
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.