Home decor financing is a type of loan that home décor business owners can use to pay for any company related expenses. There are certain types or funding or loans that can only be used for certain operations. For example, inventory loans or funding may only allow companies to buy inventory. While a general business loan can usually be used for any business expense. Loans and funding can have a variety of repayment terms.

Home decor financing will work differently depending on the type of loan you are getting, but a few general rules apply.

The first step will be qualifying or applying. Most lenders will want to see a good credit score and a reliable business history. Others may use inventory or other assets as collateral. If you are not able to qualify under these terms, you may look at alternate loans which come with higher interest rates.

Once you qualify, the loan will be funded. It will need to be paid back with interest on a daily, weekly, or monthly basis. However, other loans may offer more flexible payment terms.

Funding is another option for home decor businesses that need funds. Funding can be raised by businesses from private backers that may offer more flexible repayment terms than traditional lenders. To secure funding you’ll typically need to create a profile and get connected with backers. There are platforms online that can help make funding easy.

There are several types of home decor businesses that use financing. These include:

Home Decor Manufacturers: Home décor manufacturers make home decor products and sell them to businesses and, sometimes, individuals. They will need home decor financing for equipment, staff, materials and more.

Home Decor Retailers: A home decor retailer sells home decor products to the public. They may do so via an online store or a brick-and-mortar location. They will need funding for staff, renovations, expansions, website expenses and so on.

Designers: Interior designers also fall under the home décor umbrella. They will need funding for redecorating and remodeling products and equipment, marketing, staffing, etc.

The items you need funding for will vary depending on the type of home decor business you are running but may include:

Inventory: If you are a home decor retailer, you will need funding for inventory to stock your store.

Marketing and advertising: Every company needs a strong marketing and advertising team. This will require home decor brand financing such as marketing materials, marketing software and a marketing team.

Renovations and Expansions: If you are working out of a brick-and-mortar location, you will need funding for rent, mortgage and for future renovations, expansions, and repairs.

Staffing: Payroll is typically one of the largest business expenses a company owner deals with. Funding may be necessary to hire and pay staff or keep cash flow healthy enough to do so.

There are several home decor brand financing options to choose from. These include the following:

Bank Loans: Banks can provide funding for home decor businesses. However, they may require business history and a good credit score which can be difficult for startups to provide. They also tend to take a month or two to fund. While you may be able to find single digit interest rates and generous loan terms, bank loans can still be expensive.

SBA Loans: The Small Business Administration (SBA) is an independent agency of the federal government. Their mission is to help small businesses obtain loans. With an understanding that businesses often fail, they are more forgiving to businesses that default on loans. If you want an SBA loan you will need to find a bank or financial institution that is authorized to offer them. The application process can be lengthy.

Line of Credit: A line of credit is a type of bank loan. Unlike a term loan, that’s paid in one lump sum, businesses can access the amount of money they need at any time. Interest is charged immediately on money drawn. The money can be paid off right away or over time.

Advance Credit: Advance credit is based on a business’s future earnings. It does not look at credit score and business history, but it comes with hefty fees.

Inventory Loans or inventory funding: Inventory loans use the business inventory as collateral. Credit scores and business history is not considered, but if the company defaults on the loan, they could lose their inventory.

Alternative Loans: Alternative loans are an option for business owners with low credit scores and little or poor business history. However, they come with high interest rates.

Try Kickfurther

Home decor brand financing comes with its share of advantages and disadvantages. Here are some to consider:

Pros:

• Access the funds you need to grow your home decor brand
• Borrow money without giving up equity in your business
• Take advantage of perks offered by lenders such as business advice

Cons:

• Borrowing money is not free
• Loans may be hard to qualify for and time consuming
• Loans can take a long time to fund

Here are some tips that can help your home decor brand get funded:

Improve your credit score: You can improve your credit score by paying off outstanding debts. You can also look over your credit report to find any mistakes that may be bringing down your score and have them corrected.

Establish your brand: It’s important to establish your brand before making a loan or funding pitch. You can do this by getting a clear business plan together, launching a website and, if possible, making some money. The more of a business history you have to show, the better.

Find the right funding option: It’s important to understand the different ways to borrow money. It’s also important to know who can offer funding. Do plenty of research before moving forward with a business loan or funding.

Different lenders will require different qualifications. Some will want to see a strong credit score of at least 700. If your score is lower, you may be able to support it with a reliable business history. But if your score is below 600, alternate lenders may be your best option.

Some lenders will also want to see that you have been in business for 1-2 years and earn a profit that ranges from $50,000 to $250,000.

If you don’t meet these requirements, you may want to look into an inventory or asset-based loan or inventory funding. If you sell a physical product with $400,000+ in sales, you may be able to get affordable inventory funding at Kickfurther.

Kickfurther funds up to 100% of your inventory costs on flexible payment terms that you customize and control. With Kickfurther, you can fund your entire order(s) each time you need more inventory and put your existing capital to work growing your business without adding debt or giving up equity.

why Kickfurther?

No immediate repayments: You don’t pay back until your new inventory order begins selling. You set your repayment schedule based on what works best for your cash flow.

Non-dilutive: Kickfurther doesn’t take equity in exchange for funding.

Not a debt: Kickfurther is not a loan, so it does not put debt on your books. Debt financing options can sometimes further constrain your working capital and access to capital, or even lower your business’s valuation if you are looking at venture capital or a sale.

Quick access: You need capital when your supplier payments are due. Kickfurther can fund your entire order(s) each time you need more inventory.

Kickfurther puts you in control of your business while delivering the costliest asset for most CPG brands. And by funding your largest expense (inventory), you can free up existing capital to grow your business wherever you need it – product development, advertising, adding headcount, etc.

Developing a successful business requires a little risk taking. Getting funding or borrowing money can be risky, but if it’s a calculated risk, it can offer plenty of reward. Are you ready to access affordable inventory funding quickly?

Discover affordable home decor inventory financing. . . create an online account today!

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