Lines of Credit for Mechanical, Electrical and Plumbing Contractors
Commercial MEP contractors buy materials and run crews weeks before a general contractor pays, then wait again on retainage. A revolving line sized to billed receivables and cash flow covers that cycle. We prepare the package and place it with banks and private credit funds that understand specialty trades.
An MEP contractor line of credit is a revolving facility sized off billed receivables, work-in-progress reporting and operating history. Contractors draw for materials and payroll between progress payments and repay as general contractors pay. Unbilled work, backlog and future awards are not used to size the facilities we place.
Discuss your contractor line of credit
Tell us what you need, your timeline, and the context behind your transaction.
- A review of your business and capital needs
- Placement options aligned with your transaction
- A clear conversation about the next steps
Specialty trade contractor lines: what lenders generally look for
General market observations used by banks and private credit funds at this size.
| Benchmark | Typical range |
|---|---|
| Contractor profile | Commonly 3+ years operating and $5M+ in annual revenue |
| Sized off | Billed receivables, cash flow and operating history |
| Not used for sizing | Backlog, future awards or unbilled work |
| Key reporting | Work-in-progress schedule and receivables aging |
| Retainage | Often excluded or limited in the borrowing base |
| Pricing basis | Spread over SOFR or Prime, plus fees |
Educational ranges only. Independent capital providers set eligibility, pricing and terms.
Who a specialty trade line fits
- Mechanical, HVAC, electrical and plumbing contractors on commercial work
- Firms with steady general contractor and owner relationships
- Contractors with clean work-in-progress and billing records
- Businesses whose material and payroll costs run ahead of progress payments
Outside what we place
- Funding sized off backlog, awards or unbilled work
- Newly formed contractors without completed-job history
- Mobilization advances on individual jobs
Illustrative example: a $1.5M line for an electrical contractor
A $16M-revenue commercial electrical contractor carries $2.4M of billed receivables, including $500K of retainage. General contractors pay in 45–75 days, while payroll runs weekly.
Excluding retainage and receivables past 90 days, eligible receivables are about $1.8M. At an 80–85% advance, a line of roughly $1.5M covers materials and payroll between payments. Illustrative only — the capital provider sets eligibility and terms.
Documents to prepare
- Two to three years of financial statements or tax returns
- Current work-in-progress schedule
- Accounts receivable aging, with retainage shown separately
- Accounts payable aging
- Schedule of existing debt and equipment loans
Frequently Asked Questions
Common questions about specialty trade contractor lines.
Usually only partly, if at all. Many lenders exclude retainage or limit it, because it is paid only after project milestones. Billed, current receivables carry most of the weight.
Get a confidential placement review
Tell us what you need, your timeline, and the context behind your transaction.
- A review of your business and capital needs
- Placement options aligned with your transaction
- A clear conversation about the next steps
Tzortzis Capital evaluates and arranges capital placements. Independent capital providers determine eligibility, pricing, documentation and closing timing. Published ranges are indicative, not approvals or commitments.