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A furniture loan is usually secured through a retail outlet where you purchase your furniture.  For major office remodels and redecorations however, you might need specialized funding to furnish your office space.

Advantages to Furniture Loans

The main advantage of furniture loans is they are typically available at a low interest rate. The seller wants to give you incentive to purchase the furniture, and they will offer you a cheap loan as a result. It is not uncommon for a lender to provide 100% financing, meaning you do not have to put money down, and no interest for a short period of time. They are also typically very short loans, meaning you can pay off the loan in a year or two. Whenever you pay off a loan, your credit score will increase substantially. 

Risks of Furniture Loans

Furniture loans are almost always secured against the asset. This means you do not own the piece of furniture until you have paid off the lender in full. This type of loan is a little riskier for you, because the asset can be seized if you do not meet the loan terms. Another major risk is, if you do not pay off the loan in time, the interest rates will usually skyrocket. Paying off the loan on time and making all your payments is very important with these types of loans.

Some important items to know to finance your are:

  1. How much money do you really need?
  2. Do you know your exact FICO scores?
  3. How do you plan to repay the loan?
  4. Who is going to borrow the money? You personally or another legal entity?
  5. What assets can you pledge to secure your loan?

Make sure you know you are pre-qualified before you apply. Our free business capital search engine will allow you to see the funding programs and lenders that are available to you and then you choose those you wish to apply for.


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