Everyone needs furniture to turn their house into a home, and that is never going to change. There’s absolutely no shortage of shoppers in the market for home accents and furniture. As you can see, the furniture industry is competitive, so your business must find effective ways to stay on-trend. That’s why you need to find the perfect business funding for your furniture store.
Whether you’re an established furniture store owner looking to expand to new locations or a new business owner just starting in the industry, AdvancePoint Capital can assist. Our small business lenders are here to help you prepare and apply for furniture store business loans.
Our online marketplace is overflowing with outstanding business financing options for a furniture store in any phase of business. Contact us to get your free, no-obligation quote and find the best furniture business loans from a trusted alternative lending source. We’ll match your furniture store with the best business funding product, so you can continue growing your business and serving customers with high-quality furniture.
The 5 Best Business Loans for Furniture Stores
Short-Term Business Loans
Are you looking to take quick control of your cash flow challenges but lack a solid credit score? A short-term small business loan might be your best option. You’ll receive a lump sum of money upfront, with the option to make automatic fixed payments for a few months following. Short-term funding is great for people with a poor credit history that need cash for their business now.
Highlights of a Short-Term Loan
- Repayment period of 6 to 18 months
- Relaxed credit requirements
- Loan amounts from $10,000 to $500,000
- Limited paperwork
- Lower revenue requirements
- Same-day funding
Long-Term Business Loans
Long-term loans are similar to their shorter-term counterparts, but there are some distinct differences. Approval for a long-term loan requires a great to excellent credit score and a substantial amount of time in business before you are eligible. Long-term loans are a prime choice if you need access to working capital for significant projects or furniture business expansion.
Highlights of a Long-Term Loan
- Repayment period of 2 to 7 years
- Monthly payments
- Low interest rates
- Large loan amounts
- Stricter credit requirements
Small Business Administration (SBA) Loan Programs
Although the Small Business Administration (SBA) is not a lender like a bank or credit union, this government agency aims to assist small businesses with access to different funding options and loan programs. This federal agency offers a guarantee for SBA-approved lenders to take on more risk when providing funds.
SBA loan programs are popular for their excellent interest rates and terms. There’s plenty of flexibility for using your SBA loan funds, but first, you will have to secure an excellent credit score. We’ll help you explore every SBA loan program before deciding on a product that will work well for your furniture store’s needs.
Primary SBA Loan Programs
SBA 7(a) Loan Program – As the SBA’s primary program, 7(a) loans are designed to give businesses that have a good track record the financial assistance they need for working capital, business expansion, and acquisitions.
SBA 504 Loans – This term loan is a powerful loan program for economic development, providing businesses with avenues for obtaining funding while simultaneously promoting equity and economic growth.
504 Loans are typically used for significant working capital needs and can only be put towards fixed assets such as construction or commercial and mixed-use real estate purchases. This program is perfect for expansion or financing any outstanding debts on your furniture business.
Economic Injury Disaster Loans (EIDL) – EIDLs assist small businesses after natural disasters like tornadoes, wildfires, or floods, as well as during nationwide disasters like COVID-19. Congress offers small businesses access to relief options through this emergency loan.
Paycheck Protection Program (PPP) –Established in response to the COVID-19 pandemic, the SBA’s Paycheck Protection Program is a relief option that provides disaster loans to small businesses financially affected during the crisis.
Business Lines of Credit
Business lines of credit work similarly to the credit cards in your wallet. You can draw cash on demand, 24 hours a day, up to the agreed-upon limit. A business line of credit for a furniture business is beneficial for meeting payroll demands, making emergency purchases, and more. This revolving funding option gives your furniture store tons of flexibility.
Highlights of a Business Line of Credit
- No limits on the use of funds
- Flexible monthly payments
- Lower interest rates than business credit cards
- Great for seasonality
You’re going to need heavy machinery and vehicles to move and deliver furniture. With equipment financing, you can purchase everything necessary to keep things moving. Since the equipment you buy acts as collateral, you can think of these small business loans as an investment instead of a business loan.
Highlights of an Equipment Loan
- Low risk
- Costs based on principal and interest rates
- Financing for up to 60 months
- Fast approval
How to Use Your Furniture Business Loans Today
Quickly Access Capital
Operating a small business can be an exciting venture, but there is also a lot of uncertainty. Seasonality, location changes, trends, holidays, and increased competition can all impact cash flow to your business. Various business loans can help your furniture store quickly stabilize its cash flow. With access to more working capital, your company will be back on its feet in no time.
Invest in Inventory
It doesn’t look too great to potential customers when your sales floor is lacking furniture. Furniture store business loans are a fantastic way to invest in inventory to fill up your showroom with plenty of unique options. Purchase readily available best-selling items or trendy, seasonal pieces like patio furniture and holiday decor. Now, you’ll never have to worry about low store inventory again.
Spruce Up Your Showroom
Once you have all of your inventory on hand, think about the aesthetics of your showroom. Utilize business funding for interior decorations and additional items for your retail furniture store. Merchandise the furniture on your sales floor with pillows, throw blankets, bedding, wall decor, and life-like layouts of dinner and cookware.
Buy the Best Equipment
Running a furniture store requires some heavy lifting. Equipment like forklifts, dollies, and vehicles are needed to move and deliver large items like sectionals and beds. Plus, power tools can help your team assemble any unfinished furniture. You’ll also need computers and other office machinery to maintain orders and invoices. Use your business loan to invest in equipment and keep things running smoothly.
Expand Your Operations
Furniture store business loans can also help you grow an entire furniture empire. Use the working capital from different business loan options to renovate your existing space or expand into a new location. With all of the practical financing products available in the marketplace, you can start considering opening multiple furniture store locations.
Ramp Up Marketing Efforts
These days, everywhere you turn, it seems like a new sale or seasonal promotion is happening at local furniture stores. For your furniture business to stand out from the competition, you must implement a robust marketing strategy. Utilize business funding to boost marketing efforts for your furniture store, including in-store signage, tv and radio commercials, print ads, digital marketing, and more.
Qualifying for a Furniture Store Business Loan
Banks, credit unions, and alternative lenders alike are going to need a little bit of information about you and your business before approving your loan application. Prepare to answer questions and provide personal and business information, including:
• Time in business
• Debt obligations
• Personal and business credit score
• Bank statements
• Borrowing history
• Funding use
• Tax returns
• Income statements
• Profit and loss
• Cash flow forecast
This all might seem like a lot to keep straight, but there’s no need to stress. AdvancePoint Capital is by your side every step of the way, helping you find furniture store financing. Get your free quote today.
Invest In Your Future and Apply for Furniture Business Financing Now
At AdvancePoint Capital, we’ve been funding small businesses in the furniture industry for years. We have an impressive amount of experience as an alternative online lending source. We’ll work closely with you to find the best business loan for your furniture.