Skilled Trades Business Debt Relief
Answer-first: Skilled trades businesses, plumbers, electricians, HVAC contractors, landscapers, locksmiths, welders, face project-based revenue, inventory/tool carrying costs, and customer payment lag that makes MCA debt particularly dangerous. BDA helps trades business owners settle MCA debt before default affects licensing or bonding.
Why MCAs hit skilled trades harder
Trades work on job completion milestones. Residential service calls generate revenue same-day to 30 days. Commercial projects often pay Net 30-60. Emergency repairs pay immediately. But MCA daily withdrawals don't adjust for customer payment patterns.
Truck inventory and tool costs add pressure. A plumber or electrician carries thousands in parts on their truck. Depleting that inventory to make daily MCA payments creates callback failures, trucks arrive at jobs without needed parts.
Licensing requirements in most trades add stakes. A plumbing or electrical license is often the owner's single most valuable asset, and while licensing bodies don't review commercial debt directly, judgments and public lawsuits can trigger reviews.
What do trades owners typically come to us with?
- Single-owner trades (plumber, electrician, HVAC tech) with $30,000-$80,000 in MCA debt
- Small trades shops (2-10 techs) with $75,000-$250,000 in stacked MCAs
- Landscape and lawn care operations with seasonal revenue challenges
- Specialty trades (locksmiths, welders, ironworkers, painters) with unique equipment/inventory profiles
How does BDA's settlement process fit skilled trades businesses?
Settlement programs for trades businesses typically structure around receivables turn. Commercial trades (especially those working on new construction or property management) have predictable 30-60 day customer payment cycles that we align with program payment timing.
Residential-focused trades (emergency service plumbers, HVAC service calls) have faster customer payment cycles but more volatile daily revenue, so program structures for these businesses often average across rolling 60-day windows rather than snapping to rigid monthly calendars.
FAQ
Will settlement affect my trade license? No. Licensing is tied to professional conduct and competency, not commercial debt. Judgments filed publicly might be reviewed, but pre-default settlement avoids this.
Can I continue taking new jobs during settlement? Yes. Settlement doesn't affect operations.
What about my bonding if I'm a bonded contractor? Bonding reviews financial records. Pre-default settlement is confidential; a public judgment might affect bondability. Acting before default preserves bonding capacity.
Do you work with single-owner operations? Yes. $30,000+ minimum applies. Many of our trades clients are owner-operators.
What if my truck is under a UCC-1 from the MCA lender? Common. Truck liens are addressed during settlement, typically released when the settled amount is paid.
Can seasonal trades (landscape, snow) afford settlement? Seasonal revenue patterns are accommodated in program structure. Heavier payments in peak season, lighter in off-season.
Keep your license and your business
Schedule a Free Consultation →Trade-specific MCA settlement playbooks
Specific guidance for your trade, including the cash flow patterns, lender mix, and lawsuit exposure that apply to your business specifically:
