Painting Company Financing up to $200,000
Nothing spruces up one’s home like a fresh coat of paint. Painting company business loans are available to business owners just starting out or for existing companies updating their equipment and paint inventory to meet the needs of their customers. With Merchant Cash Advance, you may be eligible for up to $200,000 with no obligations or effect on your credit score.
Painting company business loans are one way to get your business off the ground or expand your company to increase revenue. A successful painting service generates up to $120,000 per year for the owner, making it a lucrative industry to enter.
A painting company business loan can be the key to getting started on the path to success and are available for up to $200,000.
What Are Painting Company Business Loans?
Painting company business loans are loans exclusively given to someone that runs or wants to start a painting company. These business loans can help both commercial painter and residential painter companies with aspects of the business, from equipment to payroll to office space.
These business loans can be as small as $1,000 or as substantial as $200,000, depending on business needs and what avenue you take to attain the loan.
Uses for Painting Company Business Loans
There are endless uses for painting company business loans. Painting companies require a great deal of equipment for painting and transportation to work sites which can cost a lot of money. If you are just starting your painting company, there may be some expenses you have not considered.
Equipment: Yes, house painters need paint and paint brushes to run a painting business, but you will need a lot more than that.
There are many different kinds of paint brushes, paints, sealants, and other materials you will need that can be quite costly. But you often cannot start projects without all of these tools.
You will need quality ladders and a mode of transportation for your workers and their equipment. A painting company business loan can help you afford work vans or trucks to help you complete these jobs.
Advertising: Unless you already have a lengthy and loyal list of clients, you’ll need to work to get your name out there so you can start booking jobs.
Advertising can be an expensive endeavor, whether you opt for billboards, bus ads, newspaper ads, or internet ads. But going without this expense can mean an unsuccessful business.
The average small business owner spends roughly 1% of their total revenue on advertising. So a business that generates $100,000 per year will spend about $1,000 on advertising. But this statistic differs from industry to industry, and a business just starting often spends a bit more in its first year.
Payroll: Running a company all by yourself can be quite a challenge and you may need more working capital to cover all of your expenses. Even if you’re the only one painting, which is unlikely if you want to grow a successful business model, you will likely have a bookkeeper or accountant that you will need to pay.
Most home painting services have a staff of three to ten employees, which allows the business to tackle multiple projects at once. Painting company business loans can help you cover the cash flow needed for payroll until you start generating significant money to do so on your own.
Insurance: Believe it or not, painting can be a risky business, especially if your company does home exteriors and commercial projects. Atypical painting contractor business needs several kinds of insurance before safely starting operations.
To be cautious, most painting companies acquire the following types of insurance: general liability, contractor’s E&O, commercial auto, worker’s compensation, tools and equipment, and commercial property.
Not only do you want insurance to protect your tools and equipment, but you also want to protect yourself, your workers, and your customer’s property from any accidents that may occur.
Painting Business Loan Options
When considering a painting company business loan, there are a few options to explore. Consider your business needs and how to use that information to choose the right type of loan for you.
Small business loans are the most common type of loans given to companies just starting. Banks issue small business loans directly to the business owner. The loan amount, interest rate, and payment terms of the small business loan are determined by a risk assessment.
It is important to note whether you are applying for a secured or unsecured loan, as you may need collateral to qualify. Painting companies can benefit from a small business loan because these loans allow you the freedom to spend the money however you see fit.
Merchant Cash Advances are good options for new business owners looking for funding for startup costs. Merchant Cash Advances are what they sound like, an advance of cash given to the business owner based on prospective future sales.
A Merchant Cash Advance has no annual percentage rate (APR), meaning you will not accrue debt while you pay back the advance plus, you do not need excellent business or personal credit to acquire one of these loans. Paying back a Merchant Cash Advance is a little different in that you aren’t making monthly payments. Instead, an agreed-upon percentage is taken from each day’s revenue.
An equipment loan is one of the most valuable types of business loans for a painting company. Equipment loans are given to small businesses so they can buy the necessary equipment to complete painting projects and get the ball rolling.
The equipment needed for a successful house painting business can cost tens of thousands of dollars. When you are just starting a business, this can seem like an impossible cost to overcome. However, that is where an equipment loan can be a saving grace, helping you get the tools you need to start making money.
The Small Business Administration (SBA) can also be a good option, or you have the option to open a line of credit with a bank, to borrow what you need as you spend it.
Tips for Painting Companies Trying to Qualify for Financing
Qualifying for loan financing can be stressful if you are unfamiliar with the process. There are tips you can adhere to that will boost your chances of getting the loan you need to launch your painting company.
Create a Business Plan
One of the best ways to impress a bank is to have a complete and promising business plan. A business plan should detail expected growth and revenue and indicate how the loan funding will be applied to begin the business.
In your business plan, you should showcase your industry knowledge to present yourself as a capable and determined business owner.
You should never shrug your way through a loan interview or say you’re unsure about a number of business aspects. You want to show your savvy so that the loan officer will not determine lending to you is too much of a risk.
Choose the Right Loan
Before spending hours on loan applications and meeting with banks, you should assess what different types of loans offer and what you need to begin your business.
For example, if you already have all the needed equipment and require money to complete payroll, an equipment business loan would not be the right choice for your situation. Make sure you understand the ins and outs of the loan options available before you begin the application process.
Be Thorough
Do the work to find the correct answer if you aren’t 100% sure about an answer on a loan application.
Discrepancies or gaps on a loan application can automatically disqualify you. Therefore, it is worth the extra effort to search through old tax documents to ensure everything on your application is 100% correct.
In general, you should complete every loan application as thoroughly as possible. Vague answers or skipped questions and sections can reflect poorly on you and your business. For example, another applicant who leaves nothing blank may be a more appealing option to the bank or financier.
Understand Loan Processes
Loan requirements and stipulations can seem like a foreign language. Before you start applying for loans, it can be helpful to familiarize yourself with the loan process. Do your research to understand what qualifies as collateral, interest rates, and the importance of a good credit score.
Going into a loan application or interview blind is never a good look. Try to understand as much as you can beforehand, but never be afraid to ask questions about the specifics of each loan option.
Benefits of Painting Company Business Loans
While taking out a loan can be intimidating and risky, there are many benefits to encouraging you to borrow a loan for your painting company.
- Business loans typically have lower interest rates than personal loans.
- Allows you to attain all necessary equipment.
- You can protect yourself by purchasing proper insurance.
- You can hire workers to help you complete projects.
- A successfully used and paid loan can improve your credit score.
Other Industries We Finance
Frequently Asked Questions on Painting Company Business Loans
The higher your credit score and longer your positive financial history, the easier it will be to get the loan. But Merchant Cash Advances and other loans are available to those with less-than-ideal credit scores.
Starting a painting company is not as costly as starting other companies. You typically need between $500 and $5,000 to start, depending on what kind of painting services you plan to offer.
Equipment loans and lines of credit are the best options for professional painters.
Getting the funding you need can take as long as 90 days with traditional loans or can happen as quickly as 24 hours with Merchant Cash Advances. It simply depends on your loan type and how prepared you are.
Traditional banks typically require a minimum credit score of 720, which can be challenging for some to achieve and maintain.
Individuals with lower credit scores who want or need a loan for their painting company should turn to alternative types of loans, like Merchant Cash Advances.
Merchant Cash Advances can give people with credit scores as low as 500 the cash advances they need to launch their painting company. Perfect credit or excellent credit is not necessary. There are various reasons one’s credit score may be low, and it does not always mean they are irresponsible with money.
Painting Company Business Loans Can Grow Your Business
Painting company business loans can be the key to getting your painting company off the ground and being successful. Whether you’re a house painter just starting or looking to expand your existing business, a small business loan, Merchant Cash Advance, or equipment loan can be a massive help.
Does Your Business Need Funding Today?
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$5,000 – $1,000,000
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