Gat pre-qualified before you apply for a garment loan. 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.
A garment loan is a loan made to provide funding for the purchase of garment making equipment, supplies and materials. This can include fabric, sewing machines, mannequins, and other equipment needed for a garment business. The borrower of a garment loan is usually a small business owner that is need of this financing specifically designed for garment equipment, materials and supplies.
Providers of Garment Loans
Any lender that provides business loans makes this special purpose loan. A bank, finance company or other private lender can be used for obtaining a garment loan. These loans are specifically written for the purchase of garment equipment, materials and supplies. The terms and conditions of a garment loan are expressed in the loan agreement. The loan agreement is the contract between the borrower and the lender.
Interest Rates for Garment Loans
The interest rates on garment loans depend on the credit worthiness of the loan borrower. A borrower with a good credit score will be able to receive a loan with favorable loan interest rates. A borrower with low, poor or bad credit will receive a loan with a higher interest rate. Loans with higher interest rates translate in higher monthly costs for the borrower.
Acquiring a Garment Loan
A garment loan can be part of a larger business loan that a borrower acquires. This includes loans made by the U.S. Small Business Administration (SBA) or other non-governmental lenders. A garment loan however is custom tailored to meet the needs of a business owner that is financing the cost garment-related materials.
Credit is the lifeblood of your business, especially for small or new startup companies. BusinessFinance.com assists entrepreneurs to get started purchasing equipment, building your inventory and expanding your business.
Some important items to know to finance your are:
- How much money do you really need?
- Do you know your exact FICO scores?
- How do you plan to repay the loan?
- Who is going to borrow the money? You personally or another legal entity?
- What assets can you pledge to secure your loan?