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From extravagant tables and flooring to art pieces and the frames of houses, there is no shortage of purposes for wood. Throughout history, this material has made its inherent worth clear by the work product of carpenters worldwide. This value comes with a high cost of business for carpenters — especially when you think about the price of polishers, sanders, and other woodworking tools. However, these tools are a worthy investment since, without them, a carpentry company won’t be able to meet the ever-adapting demands of the industry.
Instead of risking the loss of customers, carpenters can invest in better machinery and more labour in order to gain a competitive edge in the marketplace. Even with ongoing contracts, it can take quite a while for carpenters to pay off the value of the loan — particularly when you consider the high price of the machinery itself. In order to pay for the equipment in a responsible way, many carpenters opt to get a business loan.
Thinking of leasing your equipment? Check out the advantages and disadvantages of equipment leasing.
With the high costs associated with both opening and running a carpentry business, getting a loan can offer many benefits. It can address the specific stresses placed on carpenters and make it easier to establish the business; to give it a foothold in the industry and enable the carpentry company to thrive long-term. There are many approaches to using a carpentry business loan, including:
Learn everything you need to know about starting a business in Canada.
Carpentry is a very equipment-reliant business, especially when you think about the sheer demand for tools. From sanders to spinners to polishers, there is no shortage of need for equipment. A loan can be used to either replace damaged equipment, which could result in workplace safety issues or to simply upgrade the tools in the workplace.
In order to remain competitive, companies must keep up with the times. This involves investing in new equipment, software, and technologies that you can leverage into an increased market share.
The cost of human labour is high; however, without an ample supply of this manpower, a carpentry company will be unable to complete contracts in a reasonable amount of time. Especially if the business seeks to set itself apart through efficiency, having enough workers is essential.
Hiring employees? Check out our guide on setting up payroll.
In order to keep your employees happy and working hard, the funds from your business loan can help provide health insurance and other benefits to your team. This incentivizes employees to continue working for your company, improving your staff retention and overall morale in the workplace.
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There are several approaches to getting a carpentry business, each offering a different set of benefits. Finding the right resources is essential to getting funding that suits your business needs. Potential lenders include:
Learn more about financing your business through these government financing options.
Amount | APR | Term (months) | ||
![]() | 1k-300k | Fee-Based: Starting at 9% | 12- 60 | Learn more |
![]() | 5k-300k | 8% – 29% | 6-18 | Learn more |
![]() | 1k-500k | +5.9% | 3-60 | Learn more |
![]() | Up to 300k | 8%-22% | 6-12 | Learn more |
![]() | 5k-500k | - | 6-18 | Learn more |
![]() | 100K + | 6.05% + | 60 | Learn more |
![]() | 5K-100k | 15%+ | 12-18 | Learn more |
In order to qualify for and access the right business loan for your carpentry business, there are several things you will need. These include:
You will need to provide the lender with information related to your credit file. This informs the lender about your creditworthiness as a borrower by highlighting your credit track record. Naturally, a higher credit score makes you a more desirable borrower.
In addition to your personal credit score, you will need to supply a credit report for your business. While the former showcases your ability to repay the loan as an individual, the latter highlights the business’ history. It shows that you are an established company that doesn’t have too much debt and will be able to make your regular payments.
Another factor you should consider is offering collateral, property which you can leverage to gain access to a loan, to improve your chances. In the event of default, this collateral secures the loan, meaning it would be seized if you could not repay the amount. Collateral ranges from equipment to real property, depending on the size of the business.
Check out what is considered as a business asset.
You will need to prove to the lender that your business has been operating successfully. This history is proved both by the credit profile and bank records. This informs the lender that your company has been operational for a while; that it is able to execute carpentry tasks effectively and is profitable.
Naturally, a lender will want to learn about your plans for the business, namely how you intend to use the funding and how this will contribute to turning a profit in the future. It is helpful to have purchase orders to substantiate the business’ viability. If you don’t have any, you can simply break down the specifics of how you will spend the loan money and the ways it will help your company grow.
Find out if your business a desirable candidate for financing?
Finally, you will need to provide substantiating documentation for all claims you make during the application process. These documents include:
If you are struggling to access funding, there are business loan alternatives that you should consider. These give you usable funds that you can put toward your business expenses. These options include:
A business loan for your carpentry business can give you a distinct edge over competing companies. You can use the funds to finance everything from equipment to labour, enabling you to help your company grow and thrive. So long as you do your research ahead of time and use all resources available to you, like a loan comparison site, you can get the best terms possible.
Do you own a carpentry business? Do you need additional funds to help grow your business? Loans Canada can help you compare lenders and loan offers to find you the best option based on your unique needs.
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