It’s safe to say you’re here because you’re looking for the best loan options for painting contractors. And maybe you’re just starting out, or you’ve already established the business and you’re looking to expand. Whatever the reason, you know you’re in financial need and you’re researching the best loan options for you.
So, as a painting contractor, there are many reasons you currently may not have all the funding needed. You’re likely thinking about expenses such as storage, transportation, supplies, equipment, and maybe even some real estate. And perhaps you can afford the majority of the costs, but you’re strapped for cash.
And there will certainly be a few of you who have all their finances together, but for those who don’t, you’ll need to get some financial assistance. Which can seem a bit intimidating, but fortunately for you, there are dozens of loan options out there when it comes to helping painting contractors get funding.
We’ll look at:
- Startup loans
- SBA loans
- Business lines of credit
- Equipment loans
- How to qualify for loans
Best loan options for painting contractors
Startup Loan Options for painting contractors
Startup loans offer unsecured personal and business funding (no collateral) for up to $350,000. You must have one guarantor and an ideal credit score of +660, but anything between 600 – 800 will be reviewed. There are 0% interest rates for up to 21 months.
SBA (Small Business Administration) Loan Options for painting contractors
You must have an established business with tax returns supporting good cash flow. The interest rates are 6% – 8% and have payback terms that go from 10 – 25 years. SBA loans are reviewed anywhere between 2 weeks and 2 months (14 – 60 days), but offer the most money with the best interest rates.
Important Note: SBA loans are government funds, so alternative financial institutions must be certified to provide them as an option.
Business Lines of Credit Options for painting contractors
Business express loans are non-SBA, have lines of credit up to $500,000, and will finance you in as a little as 1 – 2 weeks. However, you must have an existing business with revenue. Interest rate and loan terms will change based on the individual.
Important Note: Business Lines of Credit require interest payments on the money used and not the total money available in the lines of credit.
Equipment Loan Options for painting contractors
Equipment loans are easy to obtain, qualify for, and are used for equipment ranging from trucks, computers, tools, and so on. The equipment is the collateral and loan amounts, terms, and interest rates change based on the individual.
The Three Cs when looking at loan options for painting contractors
To determine whether you’re qualified, Finance Factory looks at the Three Cs: Credit, Cash flow, and Collateral. They’ll look at any credit between 600 – 800, a minimum account balance of $1,000 – $5,000 for monthly cash flow (but also look at annual revenue), and will accept collateral as an option. However, You only need one of the three Cs to qualify for a loan – meaning as long as you fit the credit and cash flow qualifications, you will be able to get an unsecured loan.
Interested in finding funding for your business? Finance Factory would love to help! If you’re looking to fund your business within the next 30 to 90 days for $25,000 to $500,00 and have a credit score of 660 or better, let’s chat! Get pre-qualified right now with our quick-step pre-qualification form! And don’t worry, this will not result in a hard credit inquiry of sensitive information. We just want to learn more about you and your business. Click below to get started!