Flooring Business Loans up to $300,000
For as long as humans live in homes, the flooring industry is a relevant one. Flooring business loans can provide funding business owners need to get started. See if you can be approved for up to $300,000 and get approved within 48 hours!
A flooring business can be profitable with a good business plan in place. Worth over $388 billion globally, the flooring industry is expected to grow by over 6% by the end of the decade. If you want to start one, however, you may need a loan to get your business off the ground.
By reviewing your available financing options, you can create a business plan that outlines how you’ll cover the costs of opening a flooring business.
What Are Flooring Business Loans?
A flooring business loan is financing that provides a business owner the funds they need to open the business. These funds may include the cost of renting a building or storage facility. It may also include the cost of hiring and training new employees.
Uses for Flooring Business Loans
A few common uses of flooring financing include:
- Hiring and training new employees
- Renting a building to meet customers and show them inventory
- Renting a storage facility for inventory
- Tools and supplies
- Ordering inventory to sell
- Hardwood floor (Bruce, Carlisle, K.D. Woods Company, Lauzon, Mirage, Mullican)
- Carpet (Shaw Flooring, Mohawk Industries, Dupont, Stainmaster)
- Engineered (Johnson Hardwood, Kährs, LM Flooring, Mohawk, Mullican)
- Laminate flooring (Pergo TimberCraft, Mannington Restoration Collection)
- Ceramic tile (American Olean, Laufen International, Monarch Tile, Marazzi Tile)
- Natural stone
- Registering the business with the state
- Marketing to the local community
- Creating a website where customers can order flooring
- Fulfilling flooring orders
- Paying and training flooring installation contractors
Funding Options Available to Flooring Businesses
There is a variety of funding options available for flooring businesses. Let’s take a look.
One option is an equipment loan. Equipment financing covers the cost of machinery and equipment that is essential to the company. This includes purchasing equipment necessary for loading and unloading flooring, countertops, cash registers, or point-of-sale systems. It may also include commercial trucks for making deliveries. If you plan to offer installation, you may also need tools and equipment for removing outdated carpet and floors.
Small business loans may be available to some flooring companies. You generally need good credit to qualify for this loan, as many lenders require a credit score of 700 or higher. In addition, you must register your business in your state of operation, and lenders may require that you show solid cash flow from an existing flooring business.
A merchant cash advance may be available if you have less-than-perfect credit and limited financing options. A merchant cash advance provides you with funds that you pay back through credit card sales. For example, each time a customer uses a credit card to buy flooring, the lender takes a percentage of the sale. They continue to take a percentage of credit card sales until you repay the loan. This financing option is great for businesses that are just starting out or who need funds quickly, as the traditional loan application process typically takes much longer than a merchant cash advance.
Invoice financing works similarly to a merchant cash advance, except that your invoices are collateral. Essentially, you receive a cash advance to fund your flooring business based on the value of your invoices. Then, the lender collects from your invoices as repayment.
Tips for Flooring Business Owners Trying to Qualify for Financing
You may find it easier to qualify for a flooring loan if you have a good credit score. Try to work on your credit by paying down debt before applying for financing.
A good business plan that lays out your short- and long-term goals can help improve your chances of getting financing. If you’re not familiar with writing business plans, it may be helpful to work with a professional.
Spend some time pricing out the items you need for your flooring business, like storage space, inventory costs, installation tools, and how you’ll attract customers and fulfill sales. If you have previous experience working in flooring, either as a sales representative or handyman, include this in your business plan. Lenders prefer when business owners have prior experience.
Flooring Business Loan Pros and Cons
Knowing the pros and cons of getting a flooring business loan is crucial to getting the best rate and terms. Some of the pros and cons include:
With various options to fit your flooring business’s needs, a flooring loan can be a great way to fund your venture. While some business owners choose to bootstrap their business, it can be challenging to do well.
For example, without financing, you may be limited on the quality and quantity of inventory options you can stock in your flooring warehouse. When customers visit, they may decide to go to another flooring company with more or better quality options.
When you have access to a lot of capital, you can better train your employees with quality skills and flooring knowledge to help them close sales. In addition, many flooring business loans have low-interest rates, making them easy to pay off.
With ample capital for hiring employees, you can focus on more essential parts of the business. For example, your time may be best spent targeting customers or negotiating deals with flooring suppliers. If you have to spend all day working in the flooring business, you may not have time to do these things.
Of course, there are also some cons to consider with flooring loans. Most loans have a long list of prerequisites to qualify. If you don’t have good credit or proven success in the flooring industry, you may find it challenging to get a loan.
Your interest rates are also often dependent on your credit history. If you have poor or no credit, you could pay a lot for a flooring loan.
Most flooring lenders prefer established businesses. If you’re new to the industry, you may find it difficult to get a loan. Some lenders require collateral that could potentially put your flooring business at risk.
FAQs About Flooring Business Loans
Here are some frequently asked questions about flooring business loans:
Why Does a Flooring Business Need Financing?
If you plan on opening a flooring business, you’ll need: a showroom to show potential customers your inventory, a quality supply of merchandise that caters to your potential customers’ needs, to cover the cost of training and hiring employees to deliver and install, marketing (designing a website, creating ads, and even writing direct mailers), a fleet of commercial trucks, and liability insurance.
What Does It Cost to Start a Flooring Business?
The cost of starting a flooring business varies based on your location, the size of your showroom, how much inventory you will need to buy, and how many employees you will need to hire. However, on average, start-up costs for flooring business are around $19,000.Other factors, like the quality of your inventory and what services you offer, also can affect how much it will cost to open your new business.
What Credit Score Is Required to Qualify for a Flooring Business Loan?
The required credit score will depend on the type of loan and the lender. For example, a traditional bank typically wants to see at least a 720 or higher credit score to qualify a new business for a loan. Merchant cash advances, on the other hand, known for working with business owners with less than perfect credit, may approve credit scores as low as 500.
What to Look for When Choosing a Lender for Your Flooring Business
There are a few things to look for when choosing the right lender for your flooring business. For one, you want a credible lender. Choose a lender that has been around for a while and has a good reputation with its borrowers. You also want to consider the potential terms of the loan. Some loans may have higher interest rates or will require you to put your business up as collateral. Be sure to compare lenders with each other.
Can a Flooring Business Loan Be Used to Hire New Employees?
Yes, you can use a flooring business loan to hire and train your new employees. Flooring businesses require employees to show their customers the products, close sales, answer questions about flooring, and deliver and install the flooring.
Funding Your Business Is Our Business
Flooring Business Loans Can Grow Your Business
Whether you want to open a small flooring business or you have big dreams to open a large flooring business that caters to builders and investors, the right loan can start the process.
It doesn’t matter if you go with traditional banks from brick and mortar institutions or online lenders, flooring business loans can help grow your business by helping you stock your warehouse with the best hardwood flooring, carpeted flooring, luxury vinyl tile, and more, hire employees, pay rent on your showroom, and cover the unexpected costs of a business.
Don’t Allow a Lack of Funding
to Hold your Business Back
It’s Time To Move Your Business Forward!