SBA Loans for Roofing Companies
Businesses in the roofing industry install roofing and skylights for residential and commercial customers. In addition, roofing companies can perform roofing treatments such as coating, spraying, painting, etc… IBIS World notes that the roofing industry has struggled over the past several years. This is due to various factors including a decrease in housing starts and residential construction. Moving forward, we can expect a slight increase in industry revenue, however, profit may continue to decline. This may be alarming if you are looking to start, purchase, or expand a roofing company. Thankfully, the Small Business Administration has several SBA loans for roofing companies to help you succeed! By securing an SBA loan for a roofing company, you can focus on maximizing the success of your business.
Whether you are starting, buying, or expanding a roofing company, SBA loans are an effective and affordable financing option. To obtain an SBA loan for a roofing company, it is important to work with a reputable SBA lender. As a professional business appraiser, Peak Business Valuation works with dozens of SBA lenders across the country. We are happy to connect you with an SBA lender that meets your roofing company’s needs! In addition, Peak can provide you with an SBA business valuation and discuss any questions you may have on SBA loans for roofing companies. Get started with Peak Business Valuation by scheduling a free consultation below!
Benefits of SBA Loans for Roofing Companies
SBA loans offer several unique benefits for those looking to start, expand, or buy a roofing company. For example, SBA loans generally have lower interest rates and longer repayment terms than traditional loans. In addition, SBA loans for roofing companies offer lower down payments and flexibility in the use of the finances. The Small Business Administration also guarantees a portion of the loan. As such, lenders are more likely to approve the SBA loan if you meet basic requirements. To learn more, see Requirements for an SBA Loan.
Buying a Roofing Company with an SBA Loan
There are many benefits that come with purchasing a roofing company. For instance, buying an existing company is a quick way to establish a strong customer base and cash flow. However, buying a roofing company can come with high expenses. As such, you may consider securing an SBA loan for a roofing company. SBA loans for roofing companies have as little as a 10% down payment making it very affordable to buy a roofing company. They are guaranteed by the Small Business Administration. If you have limited access to funds for buying a roofing company, SBA financing is ideal. These loans can cover inventory expenses, closing costs, supplies, equipment, etc… In addition, SBA loans have lower interest rates and longer repayment periods. By securing an SBA loan for a roofing company, you can focus on establishing a roofing company.
SBA 7(a) Loans for Roofing Companies
The SBA 7(a) loan is one of the most common loans offered by the SBA. This SBA loan can finance various needs at a roofing company. For instance, you may use the SBA 7(a) loan to buy a roofing company, buy out a partner, refinance debt, etc… With the SBA 7(a) loan, you can borrow up to $5 million in financing. This loan program also offers lower interest rates than conventional loans. Additionally, this loan program can be used for up to 10 years. This is ideal if you need help financing any aspect of your roofing company. Schedule a free consultation to learn more about SBA loans for roofing companies.
Expanding Roofing Companies with an SBA 504 Loan
If you are looking to expand a roofing company, you may consider the SBA 504 loan. This SBA financing option can provide you with access to funds for real estate that may otherwise be difficult to obtain. For example, expanding a roofing company often involves purchasing commercial real estate. This can be an expensive ordeal. As such, roofing company owners may use an SBA 504 loan to finance the real estate purchase.
SBA Equipment Loans for Roofing Companies
There is a wide variety of equipment involved in roofing. This includes ladders, scaffolding, hammers, nails, underlayment, nail guns, etc… If you are expanding your roofing company, you will likely need to acquire roofing equipment. By securing an SBA loan for a roofing company, you can alleviate the financial burden of purchasing or leasing equipment. This allows roofing companies to have more financial flexibility when expanding operations. When securing an equipment loan, the lender may request an SBA equipment appraisal. Peak Business Valuation is a machinery and equipment appraiser and can assist. Schedule a consultation to learn more.
SBA 7(a) Line of Credit for Roofing Companies
Last, the SBA 7(a) line of credit is similar to a home equity loan. It allows roofing companies to finance a variety of needs. This often includes financing business expansion, inventory, or hiring new employees. The SBA 7(a) line of credit is ideal for roofing companies that need quick access to funds. This SBA loan is also ideal for cyclical working capital or short-term needs. There are a variety of SBA loans for roofing companies. To learn more, schedule a free consultation with Peak Business Valuation.
Conclusion
If you are looking to start, purchase, or expand a roofing company, obtaining an SBA loan for a roofing company can help you succeed. The Small Business Administration has a variety of financing options designed to help you access the funds you need to scale your roofing company. To learn more, check out How to Obtain an SBA Loan. As part of the SBA loan application process, SBA lenders may request a business valuation for a roofing company. Peak Business Valuation, business appraiser, is happy to help!
At Peak Business Valuation, we work with many roofing companies throughout the nation. We are happy to provide you with an SBA-compliant business valuation. In addition, Peak works with over 80 reputable SBA lenders throughout the country! We can connect you with an SBA lender and answer any questions you may have about SBA loans for roofing companies. Schedule a free consultation with Peak Business Valuation today to get started!
