Facility Services
Business Funding for Flooring Companies
Flooring companies carry significant material costs on every job. Hardwood, tile, carpet, and luxury vinyl plank must be ordered and paid for before installation begins. Material costs typically represent 40 to 60 percent of the job total, and suppliers often require payment on delivery or within 15 days. Commercial flooring projects for office buildings and retail spaces amplify this problem because the material orders are larger and the payment terms are longer.
Common Uses
What Flooring Companies Use Funding For
- Purchase flooring materials including hardwood, tile, LVP, and carpet for active projects
- Buy or lease installation equipment like floor sanders, wet saws, and carpet stretchers
- Cover subcontractor and installer wages during busy periods
- Maintain showroom inventory and displays to attract residential customers
Funding Options
Best Funding Types for Flooring Companies
Supplier Financing
Some flooring distributors like Shaw, Mohawk, and Dal-Tile offer trade credit programs. Qualifying for extended terms with your primary suppliers reduces the cash flow squeeze, but you usually need 6 to 12 months of purchase history first.
Business Line of Credit
A revolving line lets you order materials for multiple jobs simultaneously without waiting for previous jobs to pay. Flooring companies often have 3 to 5 jobs in various stages, and a credit line funds the material purchases across all of them.
Equipment Financing
Finance dust-containment systems, commercial floor grinders, and installation tools. The equipment holds value and the loan payments are predictable, which helps with job costing and margin calculations.
What Lenders Look For
Qualification Notes for Flooring Companies
Related Industries
Related Facility Services Funding
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