If I were a betting man, I’d wager that you’re here reading this because you’re wondering how to finance your roofing business. That’s awesome, and starting your own business is an exciting thing. However, it doesn’t come without a few challenges. While it is exciting, it can also be pretty scary. The whole process of figuring out how to finance your roofing business has its stresses. You may not always have the funds needed right at the start, but it doesn’t mean there aren’t ways you can get them.
As a contractor, there are a ton of reasons you might not have all the money to finance your roofing business. There are expenses you need to consider like supplies, storage, and employees. And maybe you can afford a lot of those things, but you’re a little strapped for cash when it comes to getting everything you need to be successful. Whatever the reason, running a small business means you need money.
You might be sitting on a lot of money that’s already available, but for those who aren’t, you’ll likely need to get funding from an alternative source. Fortunately for you, and for all business owners in today’s economy, there are a ton of options when it comes to getting the money needed to finance your roofing business.
Here are a few tips on how to finance your Roofing Business.
Loan options for running a Roofing Business
I get it. When you think of loans, you think of stress and banks and interest rates and maybe even how it might impact your credit. It’s exhausting, to say the least. But luckily for you, loans have become pretty diverse over the last few years. And if we’re being completely honest, they’re a necessary part of getting things rolling. They don’t have to be as intimidating or restrictive as they are with banks.
Banks and other traditional financial institutions pretty much operate exclusively on collateral. You have to get secured loans that put yourself at risk of losing a car, home, or even business assets. Fortunately, there are plenty of alternative companies out there that can finance your roofing business without demanding some form of collateral. These are called unsecured loans and they are becoming the fastest, safest, and easiest way to get startup and small business loans.
These alternative companies typically only need to know the three Cs to see if you’re qualified: your credit, monthly cash flow, and collateral. And the benefit of the three Cs is that you only really need one of them to qualify for a loan.
Lines of credit to Finance your Roofing Business
As a general rule, it’s probably a good idea to always keep a little bit of extra cash to cover and surprise expenses. Getting lines of credit can be really useful, and ideally, you should apply for one before you need the money as a “just in case” form of funding.
A business line of credit pretty much works like a credit card – with a specific amount of money available and interest charged only to the money taken out. After you pay the money back, you can simply withdraw more from the full amount of credit available
This line of credit is unsecured, which basically means no collateral. You can get business lines of credit from a lot of different places and they pretty much look exclusively at your revenue to see if you qualify.
Equipment loan options to Finance your Roofing Business
As I’m sure you know with any contracting business– and especially a roofing business– you’ll need supplies like ladders, trucks, and tools and maybe even a storage location depending on the size to be successful. However, you might not have enough money to finance your roofing business’ equipment. Luckily, equipment financing is the easiest loan to get since the equipment ends up being the collateral in the worst case scenario.
It’s pretty easy to qualify for equipment financing and you can usually get them along with startup and small business loans.
Why Finance Factory is a great choice when it comes to Financing your Roofing Business
Finance Factory has a team of highly trained professionals who guide and educate clients so they can make the best and most informed decisions possible when looking at loans. They help you every step of the way and give you all of the information for your application. Their specialty is making and building relationships between small business owners and vetted lenders while offering great rates and affordable terms for everyone.
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!