Hazelgrove Lending Group helps plumbing, heating and air-conditioning contractors in Redding, CA and Shasta County compare business loans: equipment financing for service vans and tools, inventory financing for water heaters and HVAC units, lines of credit and working capital. Shasta County counted 68 such contractors in 2023. This page covers their cash cycle, a stock example and partner review.
| Plumbing and HVAC employers, Shasta County, CA (2023) | 68 |
|---|---|
| Under five employees | 54.4% |
| In ZIP 96001 | 12 |
| No-payroll firms (2024) | 55 |
| Needs this page covers | Vans, tools, units and parts, payroll |
| Structures to compare | Equipment and inventory financing |
Service work and project work: two cash cycles
Service calls may be paid at the door, but need a fully stocked truck and a technician on call. New construction and replacement projects are bigger and slower: the contractor buys water heaters, condensers, furnaces, ductwork and pipe up front and is paid on completion or in draws. A shop can do both, and the project side is where the cash gap can open.
Working capital for HVAC and plumbing firms can cover crews and stock for project work, while service work funds day-to-day running costs.
Plumbing equipment financing and service vans
Plumbing equipment financing covers service vans and box trucks, jetters, camera inspection systems, pipe threaders and press tools; HVAC adds recovery machines, vacuum pumps, leak detectors and lifts for rooftop units. Vans and trucks can be the biggest single item for a shop, and partners weigh their resale value. See equipment financing for loan, lease and EFA differences.
Inventory: water heaters, condensers and parts
Keeping replacement units and common parts in stock lets a crew finish installs without waiting on the supply house. Buying them ahead of the jobs that will use them is an inventory financing question, or a line of credit question if the purchases repeat every few weeks.
Business loans for HVAC and plumbing by purpose
| Need | Structure | Why it fits |
|---|---|---|
| Service vans and specialty tools | Equipment financing | Secured by the vehicle or tool |
| Units and parts ahead of installs | Inventory financing | Backed by the units on the shelf |
| Crew payroll on project work | Working capital | Closed by the project payment |
| Repeat stock and payroll gaps | Line of credit | Draw and repay job by job |
Illustrative example: stocking units for a project
Hypothetical figures, not an offer. A contractor wins a job replacing heating and cooling in a small commercial building and needs 6 condensing units at $2,900 each, $17,400 in equipment, plus duct materials and two weeks of crew wages. The building owner pays on completion. Financing the units as inventory, and covering wages from a line, keeps the shop's own cash for service calls.
The check before asking: when does the project pay, and do the units and wages add up to more than the shop's normal cash cushion?
Maintenance agreements and warranty callbacks
Service agreements, where customers pay yearly or monthly for inspections and priority calls, give a plumbing or HVAC shop recurring revenue. Show agreement revenue separately from one-time jobs when you apply.
Warranty callbacks cut the other way: a return visit on a recent install costs labor and sometimes parts without new revenue. A shop with frequent callbacks will see it in margins, and partners may ask about it if margins look thin. Tracking callbacks by installer and by equipment brand helps you fix the cause and explain it.
Own it or rent it: jetters, cameras and lifts
Specialized tools such as hydro-jetters, sewer cameras and rooftop lifts are expensive and may sit idle between jobs. Before financing one, count how many jobs a month would use it and what renting would cost for those jobs. Equipment financing makes sense when the tool works most weeks; occasional use may be better rented and billed to the job; compare the total dollar cost both ways.
Plumbing and HVAC contractors in Shasta County, CA
County Business Patterns counted 68 plumbing, heating and air-conditioning contractors (NAICS 238220) with employees in Shasta County in 2023. 37 of them (54.4%) had fewer than five employees, a lower small-firm share than painters or electricians, and 12 had a ZIP 96001 address. Nonemployer Statistics separately counted 55 plumbing and HVAC firms without employees in 2024. The programs and years differ, so the figures are not added together.
What partners usually review
- Bank statements showing service and project deposits
- Open project invoices and payment terms
- Quotes for vans, tools or units
- Existing vehicle and equipment payments
- A summary of service versus project revenue
This trade sits under the construction and contractor page. Related trades: electrical contractors and finishing contractors. County data: Redding, CA page.
