Roofing Business Loans Up to $500,000
Applying for a roofing business loan doesn’t have to be complicated. We’ve approved thousands of companies, just like yours, for up to $500,000 within 24 hours. Apply now, no obligations, no fees, and no impact on your credit score.
Roofing business loans are a method of financing that helps business owners access additional working capital to overcome operational challenges, increase growth, and cover unexpected gaps in cash flow. While a bank loan is just one available option, alternative methods of financing like merchant cash advances, invoice financing, and business lines of credit may better serve those who haven’t yet developed strong credit and business histories.
What Are Roofing Business Loans?
Roofing business loan options are a type of small business financing used to help cover operating expenses and keep day-to-day activities running smoothly. When used strategically, roofing business lending can give company owners fast access to cash to increase working capital, bid on more jobs, and fund time-sensitive opportunities for growth.
What Can Roofing Company Loans Be Used For?
Except for SBA 504 loans, most roofing company loans may be used for any business-related expenses and activities. This often includes bidding on new projects, purchasing roofing equipment, hiring contractors, purchasing roofing supplies and materials, covering employee payroll, acquisitions and growth strategies, advertising costs, paying taxes, and other expenses associated with operating a roofing company.
Ways Roofing Businesses Can Get Funding
Depending on the reasons for borrowing and individual financing needs, there are various small business loan options available for companies in the roofing industry to choose from. For new roofing contractors just starting out or those with a less than ideal credit history, merchant cash advances and invoice financing are alternative ways to access working capital quickly.
Merchant cash advances can be funded to your bank account by the next business day. Cash advances are an alternative method of business funding where a lump sum cash payment is delivered upfront in exchange for a percentage of future revenue. Approval is based upon your company’s health and profitability, not solely on your credit history. MCAs offer merchant cash advances for those with a minimum credit score of 500.
Traditional installment loans include small business loans, Small Business Administration loans, equipment financing, and personal loans. Equipment loans are easier to get than conventional loans and use purchased equipment and machinery as collateral to secure the loan. Repayment for all installment loans is satisfied through fixed-rate monthly payments until the total cost of the loan plus any added interest and fees is made whole.
To maximize your chances of getting approved by a traditional lending company, you should be able to show proof of good credit history, minimum of two years in business, profitability (profit/loss statements and revenue projections), a valid purpose for borrowing, and availability of collateral. Traditional lenders typically like to see credit scores of 670 or higher.
A credit card and business line of credit are based upon the same lending concept. With both types of credit, funds are continuously revolving, with interest charged only on the portion of funds that are used. As an account balance gets paid down, the funds once again become available for use.
How Do Roofing Business Loans Work?
Small business loans work the same way for all borrowers regardless of industry. First, a loan application is filed by a business owner on behalf of the roofing company with one or more lenders. The lender then makes a determination for approval based upon a review of credit history, length of time in business, company financial statements, collateral, and purpose for borrowing. If approved, a loan agreement is signed and funds are transferred to the borrower. Once the money exchanges hands, the borrower is legally obligated to repay the lender in fixed-rate monthly payments until the total cost of the loan, including any fees and interest, is satisfied in full.
Qualifying for Roofing Company Loans With the Best Rates
In general, most conventional lenders will have the same requirements for potential roofing business borrowers: a satisfactory business history of at least two years, good credit history with credit scores above 670, proof of income via profit/loss statements, availability of collateral, and reasonable purpose for borrowing. Therefore, meeting most or all criteria for lender applications will maximize your chances of obtaining the best rates and loan terms for your roofing small business loan.
Where to Get a Roofing Business Loan
Loans for your roofing business can be obtained through traditional brick-and-mortar lenders like banks and credit unions or alternative online lenders. Deciding which lender to use will heavily depend on your personal needs, length of time in business, and credit history.
How to Apply for the Best Roofing Business Funding
To be approved by MCashAdvance, you must meet the following requirements:
- U.S. citizens and legal residents only
- 18 years old or older
- Your business must be at least six months old
- A credit score of 500 or higher is required
In order to be eligible to receive funding for your roofing business, the financial health of your company is evaluated, but you may be eligible for up to $500K.
Typically, repayment periods range from 1 to 5 years but can vary depending on the funded amount and volume of sales of your roofing business.
Pros and Cons of Loans for Roofing Companies
Taking out a loan can make it much easier for business owners to invest in extra staff, equipment, marketing campaigns, and time-sensitive growth strategies to fuel rapid business expansion. In addition, loans tend to be associated with lower interest rates and better terms, making it a desirable mode of financing if you can meet the strict eligibility criteria. Finally, equipment loans are among the most accessible types of loans as purchased equipment secures the loan through collateral.
Due to a lack of time in business or bad credit history, aspiring entrepreneurs and new businesses with excellent public service offerings are often denied funding from traditional lenders. Usually, the applicants most in need of funding cannot gain loan approval. Fortunately, alternative financing options like merchant cash advances are available up to $500,000 by the next business day for those who qualify.
Frequently Asked Questions for Roofing Business Loans
How Can Roofing Companies Fill Gaps in Pay Between Projects?
If your company is young and you’re working to bring in a steady flow of jobs, you may struggle to cover financial gaps between pay. Unsecured personal loans are a potential option to provide you with enough cash to make it to the next job. Unsecured loans are less risky since there is no collateral but often come with higher interest rates.
Can a Roofing Business With Bad Credit Get a Loan?
Yes. Bad credit history does not automatically exclude you from the ability to obtain roofing financing. Alternative lending options like merchant cash advances and invoice financing rely much less on credit history and more on your business’s overall health and earning potential.
What Credit Score Is Needed to Get a Roofing Business Loan?
Traditional financial institutions like to see a minimum credit score of 600 for small business loans. If you don’t meet this requirement, merchant cash advances are an alternative solution and require a minimum credit score of 500.
How Much Funding Can a Roofing Company Receive?
The amount of funding approved through a roofing business loan depends on the type of lender you choose, application strength, and reason for borrowing. Merchant cash advances are available in amounts up to $500,000 while SBA loans reach high into the seven figures.
Can a Roofing Company Get a Loan to Acquire Another Company?
Yes. Acquisitions are an approved reason for funding with various small business loans. Funds from SBA loans and traditional bank loans are often used for business acquisition and expansion activities.
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