Growth requires capital - new trucks, additional tools, marketing investment, and hiring. Bootstrapping works to a point, but most contractors eventually need financing to scale past $500K-1M in revenue.

Equipment Financing

Buy trucks and major tools with 0-10% down and finance over 3-7 years. The equipment itself serves as collateral, making approval easier than unsecured loans.

Options:

  • Dealer financing (Ford, Chevy, Ram commercial programs)
  • Equipment-specific lenders (BalBoA Capital, Crest Capital)
  • SBA 7(a) loan for larger purchases

Rates: 5-15% depending on credit and down payment.

Business Line of Credit

A line of credit gives you flexible access to $25K-250K that you draw on as needed and only pay interest on what you use. Perfect for covering seasonal cash flow gaps, materials purchases, and unexpected expenses.

Options:

  • Community banks (often the best rates and relationships)
  • Online lenders (Kabbage, Fundbox, BlueVine)
  • SBA Community Advantage loans

Rates: 7-25% depending on credit and lender.

SBA Loans

SBA loans offer the best rates for established contractor businesses (6-9%) with terms up to 10 years. The SBA doesn't lend directly - they guarantee loans from participating banks, making banks more willing to lend.

Best for: Contractors with 2+ years in business, strong financials, and a clear growth plan.

Customer Financing

Offering customer financing on large projects (HVAC installations, remodels, panel upgrades) increases average ticket by 20-40%. Customers who can't afford $8,000 upfront can afford $150/month.

Options:

  • Wisetack - integrated with ServiceTitan, Jobber, and Housecall Pro
  • GreenSky - home improvement financing from major banks
  • Synchrony - consumer financing with promotional rates

Customer financing costs you nothing or a small merchant fee. The customer pays the financing company, and you get paid immediately.

Explore financing options

Get Started

Building Business Credit

1. Get a business credit card and use it for business expenses

2. Open a business bank account separate from personal

3. Establish trade credit with supply houses (net 30 terms)

4. Pay everything on time - business credit builds slowly

5. Check your business credit (Dun & Bradstreet, Experian Business)

Strong business credit gives you access to better rates and higher credit limits as you grow.

Worked Example: Customer Financing Impact

HVAC installation business. Without financing: average ticket $4,500, close rate 35% = 14 installs/month × $4,500 = $63,000. With Wisetack financing offered: average ticket increases to $5,400 (customers choose better equipment when they can finance), close rate increases to 45% = 18 installs × $5,400 = $97,200. Revenue increase: $34,200/month = $410,400/year. Wisetack merchant fee: 3-5% on financed amount. If 40% of customers finance: $97,200 × 40% × 4% = $1,555/month. Net revenue gain: $32,645/month. ROI: massive.

What Not to Do

  • Don't bootstrap past $500K if growth requires capital. Using cash flow to fund equipment purchases and hiring slows growth and creates cash flow risk. A $50K equipment loan at 8% costs $4,000/year - if it helps you complete $50K more in jobs, it's paid for itself.
  • Don't take on high-interest debt without a clear ROI. A 25% merchant cash advance to cover payroll is an emergency measure, not a growth strategy. Plan ahead with a line of credit at 7-12%.
  • Don't skip customer financing. If you sell installations and don't offer financing, you're losing 20-40% of potential revenue. Customers who can't afford $8,000 today can afford $150/month.
  • Don't neglect business credit building. Start building business credit from day one. Separate business and personal finances, establish trade credit with suppliers, and pay everything on time.

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