So, you’re here because you’re looking into the best loan options for your roofing business. Maybe you’re looking to create a startup up, or perhaps you’re already established and looking to expand the business. Whatever your reasons, you’re reading this because you need financial assistance.
As a contractor in the roofing business, there are a ton of reasons you may not have the cash you require. There are costs such as supplies, storage, tools, transportation, equipment, real estate, and more.
And while there is likely a great deal of you reading this who have their finances squared away, for anyone who doesn’t, you’ll need to look into potential loan options. Lucky for you, there are plenty of loan options for your roofing business.
The 4 Best Loan Options For Your Roofing Business
- Startup loans
- SBA loans
- Business lines of credit
- Equipment loans
We’ll also look at how you can qualify at Finance Factory
Loan Options For Your Roofing Business: Startups
When it comes to personal and business funding, startup loans offer up to $350,000 in unsecured (no collateral) loans. In order to apply for a startup, you must have at least one guarantor with a credit score ranging between 680 and 800. However, the ideal score financial institutions like to see is +660. There are also 0% interest rates for up to 21 months.
Loan Options For Your Roofing Business: SBAs (Small Business Administration)
In order to qualify for an SBA loan, you just have an established business with proof of good cash flow. When it comes to interest rates, you’re looking at 6% – 8% with payback terms running anywhere between 10 – 25 years. The typical review period for SBA loans can range from 2 weeks to 2 months (14 – 60 days), but provide the highest amount of financial assistance with the best rates.
Important Note: Since SBAs are government finances, alternative institutions must be certified in order to provide you with SBA options.
Loan Options For Your Roofing Business: Business Lines of Credit
Business Express Loans, or business lines of credit, are non-SBA. And they offer funds within 1 – 2 weeks after your submitted application and provide up to $500,000. However, in order to qualify, you must have an established business with proof of revenue. interest rates and loan terms will vary between individuals.
Loan Options For Your Roofing Business: Equipment Financing
Equipment Financing is the easiest loan to obtain for those in the roofing business. This type of loan is used for equipment such as supplies, tools, transportation, storage, computers, and so on. It’s important to remember, though, that with equipment financing, the equipment itself is the collateral in the case of a default. The loan amounts, interest rates, and terms will vary depending on the individual.
Loan Options For Your Roofing Business: The Three Cs of Qualifying
In order to determine whether you qualify, Finance Factory looks at the Three Cs: Credit, Cash Flow, and Collateral. Although the ideal credit score is 660+, they’ll look at anything between 680 – 800. As for cash flow, they like to see account balances of $1,000 – $5,000, minimum, but also look at monthly and annual revenue. And when it comes to collateral, Finance Factory primarily focuses on providing unsecured loans; however, they will accept collateral. It’s important to know that you only need to provide one of the Three Cs in order to qualify.
Finance Factory helps you find the best loan options for your roofing business
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!
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