Like all types of businesses, starting a flooring business requires cash just to launch. Your expenses don’t end then, however. You need ongoing access to cash to purchase inventory, advertise your company, pay the rent for your retail space, purchase equipment, meet payroll, and much more. While the industry continues to enjoy upward growth, it’s always a good idea to explore your loan options to ensure that your flooring company can remain competitive.

Bank Loans

While bank loans typically come with the lowest interest rate and the ability to receive a high-dollar loan, they also have a reputation as being difficult to obtain due to stringent lender requirements. Examples of documentation you must have include:

  • Two to three years of business tax returns, a requirement that immediately disqualifies newer businesses.
  • A personal financial statement and guarantee that you will repay the loan with your own finances should the business fail.
  • Financial statements such as profit and loss, balance sheet, and a budget forecast.
  • Schedule of all debts.

If you find that a bank loan won’t work for you or you can’t qualify, the good news is that you have plenty of other loan options to consider.

Small Business Association (SBA) Loans

The Small Business Association (SBA) is a government organization that provides a range of services to small business owners to help them succeed. When it comes to loan options, the SBA backs business loans rather than offering them directly. What this means is the SBA promises to repay the lender a large percentage of the loan if you default on repayment. Typical documentation required for an SBA loan includes:

  • Business financial statements
  • Business tax returns
  • Debt Schedules
  • Personal financial statement
  • Personal tax returns

Finance Company Alternative Loans

Perhaps you have not yet established credit for your business or have the documentation that banks require to process a loan. Many new small business owners find it simpler to work with a finance company as requirements are less stringent and payment terms are often more flexible. Please contact Coastal Commercial Lending today to learn more about alternative financing loan options for your business.