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Carpet Cleaning Van Financing | Navigation

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If you are the owner of a carpet cleaning business, you probably need equipment to get the job done, both to start your business and to maintain your business’s ability to serve customers with cleaning equipment. of premium rugs for years. to come. Financing a carpet cleaning van could help you with the capital you need to purchase essential equipment for your business.

How much does a van and carpet cleaning equipment cost?

There are many types of carpet cleaning equipment out there, from truck rack to carpet cleaner extractor, and none of them come cheap. You will also need to purchase smaller types of equipment, like hose reels, scrubbers, solution hoses, vacuum hoses, and cushioning tools if you are starting a new business, and replace them as needed. If you decide to expand and hire more carpet cleaners, you will need to duplicate those purchases, and this investment may take some time to pay off.

New equipment, of course, costs more. Truck mounting can cost anywhere from $ 10,000 to $ 20,000. Carpet cleaning scrubbers can cost anywhere from $ 500 to $ 2,000.

Used carpet cleaning equipment can save you boat cargo. A used carpet cleaning van can cost between $ 16,000 and $ 25,000. If you buy a new van and equip it, your costs will be significantly higher.

Determine if you need new equipment or if used carpet cleaning equipment would suffice before you start exploring financing options.

Carpet cleaning van Financing options for Your business

There are a variety of small business loans and lines of credit to consider when purchasing vans and carpet cleaning equipment. Let’s dive into it.

Bank loans

If you have excellent credit, working capital loans from lenders like banks, credit unions, or online lenders can provide you with financing to purchase new or used equipment or vehicles for your cleaning business. carpet.

SBA loans

Another option if you have good credit is a Small Business Administration loan. SBA loans offer low rates and long repayment periods, and you can use these loans to purchase equipment and for working capital.

Credit line

If you want money now, maybe to buy a pickup truck, and later, maybe to expand your operations with more equipment, getting a line of credit gives you access to cash when you need it. need, rather than a lump sum.

Equipment financing

There are loans specifically to help you purchase equipment for your business, called equipment loans. The van or carpet cleaning equipment you buy serves as collateral, which can lower the interest rates you pay.

Commercial lines

If there are carpet cleaning equipment suppliers that you buy from regularly, you may be able to open a line of credit with them and take 30-90 days to pay your bills, which will help free up cash.

Business credit cards

While you wouldn’t want to buy a van with a credit card, you can use business credit cards to buy cheaper carpet cleaning supplies and equipment. Look for a card with an introductory offer and 0% APR rewards.

Equipment rental

For many carpet cleaning companies, equipment rental makes sense. At the end of your lease, you can return the equipment or vehicle to the lending company and rent a brand new replacement. Your monthly payments may be lower than for a firm purchase.

Other equipment you can buy with equipment financing

None of the above options are specific to upholstery and carpet cleaning equipment, so you can also use them for other purchases, such as computers, mobile tablets and point-of-sale systems, and to buy office furniture.

What does it take to be eligible for equipment financing?

Each lender may have slightly different criteria for loan qualifications, so do your homework before you apply. Most will look at your personal or professional credit scores. The higher your scores, the better the interest rates you may be entitled to.

If you don’t already have business credit established, learn how to set up business credit so you have more options.

Lenders can also look at your annual income and cash flow, so make sure your finances are in order.

If you have a startup, be prepared to only qualify for higher interest funding, as most lenders want you to be in business for at least two years.

How to choose the best carpet cleaning financing option for you

The point is, only you can determine the type of carpet cleaning financing that is best for your business. But the point is, having access to working capital will make it easier for your business to run smoothly.

Look at new and used equipment and find the best prices. Next, look for the best financing you can qualify for with your credit situation.

This article was originally written on July 8, 2021.

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