Carpet Cleaning Van Financing

Carpet Cleaning Van Financing

Carpet Cleaning Van Financing

If you’re the business owner of a carpet cleaning business, you likely need equipment to get the job done, both to start your business and to maintain your business’s ability to service customers with top-of-the-line carpet cleaning equipment for years to come. Carpet cleaning van financing might help you with the capital you need to purchase the equipment critical to your business.

How Much Does a Carpet Cleaning Van and Equipment Cost?

There are many types of carpet cleaning equipment, from a truckmount to a carpet cleaner extractor, and none of them come cheap. You’ll also need to buy smaller types of equipment, like hose reels, scrubber, solution hoses, vacuum hoses, and upholstery tools if you’re starting a new business, and replace those as necessary. If you decide to expand and hire more carpet cleaners, you’ll need to duplicate these purchases, and it may take a while for that investment to pay off.

New equipment, naturally, costs more. A truckmount can cost anywhere from $10,000 to $20,000. Carpet cleaning scrubbers can run from $500 to $2,000. 

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

Consider whether you need brand 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 to purchase carpet cleaning vans and equipment. Let’s dive in.

Bank Loans

If you’ve got 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 carpet cleaning business.

SBA Loans

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

Line of Credit

If you want some cash now, maybe to purchase a van, and more later, maybe to expand your operations with more equipment, getting a line of credit gets you access to cash when you need it, rather than a lump sum.

Equipment Financing

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

Trade Lines

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

Business Credit Cards

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

Equipment Leasing

For a lot of carpet cleaning companies, equipment leasing makes sense. When your lease is up, you can return the equipment or vehicle to the lending company and lease a brand new replacement. Your monthly payments may be lower than with an outright purchase.

Other Equipment You Can Purchase 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 Qualify for Equipment Financing?

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

If you don’t yet have established business credit, learn how to establish business credit so you qualify for more options.

Lenders may also look at your annual revenues and cash flow, so make sure your financials are in order.

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

How to Choose the Best Carpet Cleaning Financing Option for You

The fact is: only you can determine what kind of carpet cleaning financing is best for your company. But the fact is: having access to working capital will make it easier for your business to run smoothly.

Look at both new and used equipment, and shop around for the best prices. Then shop around 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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ABOUT AUTHOR

Susan Guillory

Susan Guillory is a Senior Content Writer for Nav. She’s written books on business and travel, and blogs about small business on sites including Forbes and AllBusiness.

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