The best business loan broker for HVAC and plumbing contractors (2026)

Name: Bay Street Lending
Address: 11 Broadway, Suite 1131, New York, NY, 10004, US
Price range: $25K-$10M

Full disclosure: we are Bay Street Lending, a broker, so we're biased. We say plainly below where your bank, a marketplace or a specialist lender is the better choice for a contractor, and every competitor fact links to its source.

Updated October 2026 · Competitor facts checked October 2026

Financing options for HVAC and plumbing contractors at a glance

Option	Best for	Smallest request	Fastest funding (as stated)
Bay Street Lending	Established shops, $25K–$2.5M, one advisor	$25,000	As fast as 6 hours (working capital)
Your own bank	Shops with 2+ years of returns and good credit	Set by the bank	Usually weeks
A subordinated-debt lender	Larger shops that already have a bank loan	Set by the lender	Set by the lender; your bank usually has to consent
Lendio	New shops and small requests, self-serve	$1,000 (line of credit)	"As soon as 24hrs"
Fundera	Small shops that also want cards and banking tools	$5,000	Not published

What lenders look at for HVAC and plumbing contractors

Seasonality first, then job mix, then the payments you already carry.

Bank statements: 6–12 months, so the underwriter sees both peak and shoulder seasons
Deposits: Average month and your slowest month, not just your best one
Job mix: Service calls, replacement installs, and commercial work on net terms
Existing payments: Van and truck notes, plus any short-term working capital still running

For most HVAC and plumbing shops, revenue follows the weather: cooling calls in hot months, heating and frozen-pipe calls in cold ones, and thinner shoulder seasons in between. A shop that deposits $150,000 in July may deposit half that in April. Funders who work with contractors expect the swing. What hurts a file is a slow month with no explanation, or an account that runs to zero every shoulder season. Send 12 months of statements if you have them, and say in one line which months are seasonal.

Job mix comes next. Residential replacement installs are often paid at or near completion, sometimes through a consumer financing program. Commercial and new-construction work is typically billed on net terms set by the customer's contract. Underwriters read a heavy commercial mix as slower cash, and a large base of maintenance agreements as steadier cash.

Then the stack. Many shops already carry notes on vans, and some still have a short-term advance from last summer. A new funder weighs your total weekly or monthly payment against your slowest month. If the payments only work in July, the right answer is usually a line of credit, not another term advance.

HVAC working capital: uses, costs and qualification →

1. Bay Street Lending

This is us. Our pick for established shops that need $25K to $2.5M and one advisor.

Best for: Shops 6+ months old with $25K+/month in deposits needing $25K–$2.5M
Product fit: Line of credit for seasonal swings; working capital for a dated gap; equipment financing for vans; factoring for commercial invoices
Cost to you: No fee from us; the funder pays us if you fund
Reviews: 5.0 on Google from 45 reviews

Bay Street Lending is a broker, not a lender, founded by an investment banker and a partner who has spent his career in commercial finance. You apply once (a soft credit pull, about two minutes), one named advisor works the file, and it goes only to the funders among our 100+ partners whose criteria it meets. Every option comes back priced side by side, with total cost, payment and term in writing before you sign, and no obligation to accept.

Contractors are a large part of our book. In 2026 we arranged $433K for a plumbing and air company, $330K and $200K for two HVAC companies in April, $305K for an AC contractor in June, and three fundings between $40K and $148.5K for one mechanical contractor. If you find yourself needing capital every season, ask us about a line of credit (from $25K, 650+ credit, one year in business) before another short-term advance.

Where we fall short: we do not serve shops under six months old or requests under $25,000, working capital needs $25,000+ a month in deposits, and we have fewer public reviews than the bigger brokers and marketplaces (45 on Google, rated 5.0). Short-term working capital costs more than a bank line. Use it for a gap with a clear payoff, like a pre-season equipment order that turns into installs within weeks.

Plumbing business financing and working capital →

2. Your own bank or an SBA preferred lender

Better and cheaper if you qualify and can wait.

Best for: Shops with 2+ years of tax returns, good credit and clean books
Products: A revolving line sized to the slow season; SBA 7(a) for buying another shop
Speed: Weeks for a line; SBA loans commonly 60–90 days
Trade-off: More paperwork; lines can carry annual renewals and covenants

If your bank will give you a line of credit sized to your slowest two months, take it before you call any broker, including us. It is the cheapest seasonal money a contractor can get, and you pay interest only on what you draw.

Expect a bank to ask for business tax returns, financial statements and a personal guarantee. Some shops miss on timing rather than credit: the season moves faster than the bank. If you are buying a competitor or a building, an SBA loan is the right tool: the SBA lists changes of ownership and real estate among 7(a) uses, and its 504 program offers long-term, fixed-rate financing for buildings and major equipment. We arrange SBA loans too ($50K–$5M, typically 680+ credit and two years in business), but a bank that already holds your deposits may move just as well.

Seasonal business financing, explained →

3. A lender that specializes in subordinated debt

Better for bigger shops that already have a bank loan.

Best for: Established shops with a bank line that need more capital behind it
Structure: Junior debt that sits behind your bank, usually over several years
Uses: Buying a competitor, a large commercial contract, a fleet expansion
Trade-off: Costs more than the bank line; your bank usually has to consent

Some HVAC and plumbing companies outgrow short-term money. A shop with a bank line, a fleet of vans and a commercial backlog that wants to buy a competitor or take on a multi-year service contract usually needs patient capital, not another advance with a weekly payment.

If your shop already has a bank line and needs more capital behind it, a lender that specializes in subordinated debt is the better choice. We do not offer subordinated debt. That lender sits behind your bank, so expect it to want reviewed financials and a subordination or intercreditor agreement with your bank.

Talk to your bank first. Your loan agreement may limit additional debt, and some banks will tell you which junior lenders they have worked with before.

4. Lendio

Better for new shops and requests under $25,000.

Best for: Shops under 6 months old and requests under $25K
Amounts: Line of credit from $1K; equipment $5K–$5M
Cost to you: Free to apply; lenders pay Lendio
Reviews: Trustpilot 4.5 (21,906), BBB A+

Lendio is an online marketplace, not a lender. It lists lines of credit from $1,000, equipment financing from $5,000 and startup loans up to $150,000, so a newly licensed plumber or a two-van HVAC shop can get offers we cannot arrange. Finder cites a revenue bar of about $8,000 a month.

The trade-off is reach. Its privacy policy says it will share your file with "lenders, business financing providers, banks, and brokers," who may keep it even if you never take an offer. Its own grid shows lines of credit priced from 8% to 60%, so compare total cost, not just approval.

Lendio products and amounts ↗

5. Fundera (NerdWallet)

Better for small shops and requests from $5,000 to $25,000.

Best for: Small shops, requests from $5K, owners building business credit
Minimums: Not published; Finder cites 600 credit and $60K+ revenue
Cost to you: Free; lenders pay Fundera
Reviews: Trustpilot 4.8 (1,214), BBB A+

Fundera is NerdWallet’s small-business loan marketplace. Its application starts at $5,000, a Funding Advisor reaches out, and its marketplace lists equipment financing, invoice financing and business credit cards. For a shop below our $25,000 minimum, such as a one-truck plumber buying a tool package, Fundera is the better fit.

Read the consent before you apply. It lets Fundera share your information with NerdWallet and its partners and permits autodialed calls and texts, even to numbers on a Do-Not-Call list. Finder lists excessive solicitation as a con.

How Fundera works ↗

Our pick

For most established HVAC and plumbing shops, start with your bank for a seasonal line of credit. If the bank is slow or says no, or you need $25,000 to $2.5M for a dated gap, Bay Street Lending is built for that: one advisor, a short list of priced options, and your file kept to funders that fit.

Choose a lender that specializes in subordinated debt if you already have a bank loan and need more capital behind it. Choose Lendio or Fundera if your shop is new or the request is under $25,000.

What we'd do today

Pull 12 months of business bank statements and mark your two slowest months.
List every current payment: van and truck notes, any advance still running, and your line of credit balance.
Name the use and the payoff: a pre-season equipment order, a new technician, or a commercial job on net terms. Match the product to it.
Ask your bank first for a line sized to the slow season. If it says no or needs months, apply with a broker that limits who sees your file.
Compare offers on total payback and on the payment in your slowest month.

Questions

What do lenders look at for an HVAC or plumbing company?

Six to twelve months of bank statements, average deposits and the slowest month, the mix of service, replacement and commercial work, existing payments on vans and equipment, and time in business. Credit weighs most for bank and SBA loans.

Is a line of credit or a term loan better for a seasonal contractor?

A line of credit in most cases. You draw in the slow season, repay at peak, and pay only for what you use. A term loan or short-term working capital fits a one-time cost with a clear payoff.

Can a plumbing company with commercial accounts use invoice factoring?

Yes, if the invoices are owed by creditworthy commercial customers on net terms. Factoring advances 80 to 95 percent of the invoice. It does not help with residential jobs paid at completion.

Does Bay Street Lending lend the money?

No. Bay Street Lending is a broker. A funder makes the loan and pays us if you fund. You pay us no fee and are under no obligation to accept an offer.

What is the smallest amount Bay Street Lending arranges?

$25,000. For less, a marketplace such as Lendio, which lists lines of credit from $1,000, or Fundera, whose application starts at $5,000, is the better fit.

See what Bay Street Lending can do for you

One application, one named advisor, and every option priced side by side. Your file goes only to funders that fit, we never sell your information to other lenders, and there is no obligation to accept.

Start your application

Sources

We checked every competitor fact on this page in October 2026. Terms change; confirm on the provider's site before you apply. Bay Street Lending is a broker, not a lender.