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Carpet Cleaning Financing: How Can You Secure a Loan?
November 09, 2021
Our Guide to Carpet Cleaning Van Financing

Carpet Cleaning Financing: How Can You Secure a Loan?

Carpet cleaning can be a lucrative business, especially once you get your operations up and running. However, like with most other ventures, you need to invest in equipment upfront so that you can operate and grow.

That’s where carpet cleaning equipment financing comes in. It can provide you with the working capital you need to pay for costly equipment. In this blog post, we’ll explain how carpet cleaning business loans work and what business owners should consider prior to applying.

What Is the Cost of Carpet Cleaning Equipment?

There’s no shortage of carpet cleaning equipment on the market. The type you need will depend on how you choose to set up your business and whether you’d like to serve residential clients, commercial clients, or both.

If you have a commercial carpet cleaning business, you’ll likely need more powerful and expensive equipment than you would if you clean carpets in homes. In most cases, however, you’ll need a van to store equipment, such as:

  • Truck mounts
  • Carpet cleaner extractor
  • Scrubbers
  • Solution hoses
  • Hose reels
  • Upholstery tools

Keep in mind that if you decide to expand your business and hire more carpet cleaners, you’ll need to purchase multiple vans and even more equipment.

Don’t forget that in addition to equipment, you may need increased cash flow to pay for other business costs. These may include licensing and registration, insurance, marketing, and payroll.

7 Carpet Cleaning Financing Options

When it comes to a carpet cleaning business loan, there are many options you can choose from including:

1. Traditional Bank Loans

Banks, credit unions, and online lenders offer working capital loans that can help you finance new and used equipment for your carpet cleaning business. While you may be able to lock in low interest rates and favorable terms, you’ll probably need good to excellent credit. You can also expect to wait a bit before you get approved and receive the funds.

2. Small Business Loans from Alternative Lenders

Many business owners turn to alternative financing lenders to ensure that they can receive faster financing. Although banks provide leasing and loan options to carpet cleaning business owners, their application process is lengthier. In addition, they typically have stricter requirements for their loan applicants.
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3. SBA Loans

If you qualify for an SBA loan, it can be a great way to finance your carpet cleaning venture. Just like with bank loans, you’ll need good or excellent credit in order to qualify.

Depending on the SBA loan you choose, you may also need to go through an extensive application process. If you do get approved for an SBA loan however, you can expect low rates and long repayment periods. Part of your loan will also be guaranteed by the SBA.

4. Lines of Credit

A business line of credit may make sense if you’re unsure of exactly how much money you need to fund your carpet cleaning business. It can also be a smart option if you’d like to buy some equipment now and more later on as you build your clientele and grow your business. Rather than a lump sum of cash, a line of credit will give you access to funds that you can use as much or as little as you want up to your set credit limit.

5. Carpet Cleaning Equipment Loans

Equipment financing programs are ideal for carpet cleaning businesses because you’ll need to buy equipment in order to succeed. These loans are specifically designed to help you buy equipment for your business. Often, business owners in the service industry seek van financing in order to afford vans.

If you don’t have the best credit score, this type of carpet cleaning van financing may be the way to go. Since your loan will be secured by your equipment and less risky, lenders may be more lenient.

6. Equipment Leasing

Depending on your carpet cleaning business plan, equipment leasing may be a good alternative to purchasing. An equipment lease works a lot like a car lease. When your lease is up, you’ll return your equipment or vehicle and may lease replacements if you’d like. The benefit to this option is that you’ll enjoy lower monthly payments than you would if you buy the equipment.

7. Business Credit Cards

Although business credit cards won’t help you buy a van or afford other large equipment costs, they can help you fund smaller, less expensive equipment purchases. If you go this route, be sure to look for cards that offer 0% introductory offers and rewards like cash back and travel points.

Conclusion: Consider Your Carpet Cleaning Business Loan Options

Because there are numerous carpet cleaning equipment financing packages to choose from, it’s in your best interest to consider all of your options. When you do find a small business loan option that you like, don’t sign on the dotted line until you’ve read the fine print and know exactly what you’re committing to.

Fora Financial

Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved, or otherwise endorsed by any of these entities.

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Fora Financial is a working capital provider to small business owners nationwide. In addition, the Fora Financial team provides educational information to the small business community through their blog, which covers topics such as business financing, marketing, technology, and much more. If you’d like to see a topic covered on the Fora Financial blog, or want to submit a guest post, please email us at [email protected].