How to Finance Your Carpet Cleaning Business

Running a carpet cleaning business is a lucrative career choice. However, if you plan to start your own carpet cleaning business, you’ll need enough money upfront to cover your startup fees.

If you haven’t saved any startup capital, you may wonder, “how can I start a carpet cleaning business with no money?” For most business owners, the answer is to obtain financing through an online lender or financial institution.

Find out what it costs to start your carpet cleaning business as a DryMaster affiliate and how to get carpet cleaning financing.

What Does it Cost to Start a Carpet Cleaning Business?

Starting a carpet cleaning business requires an upfront investment. On the high-end, starting your carpet cleaning business can cost anywhere from $56,000 to $80,000. However, our affiliate programs allow you to start your carpet cleaning company for between $2,030 to $12,595.

These carpet cleaning business startup costs cover expenses related to carpet cleaning equipment, marketing supplies, office supplies, business registration fees, and business insurance.

Equipment

Carpet cleaning equipment is by far your most significant expense in starting your business. Portable hot water extraction equipment and low moisture carpet cleaning equipment cost several thousands of dollars each and are necessary for your business to function.

Office supplies

While you may not require a large amount of capital for office supplies, you will likely need to include funds for basics like a printer, a work computer, accounting software, and paper in your startup costs.

Marketing

Marketing is essential for getting the word out about your new carpet cleaning business. You should plan to spend about 5% to 8% of your projected gross revenue on marketing your business, so if necessary, factor this amount into your financing amount.

Insurance

As a small business owner, you’ll need to obtain business insurance. General liability insurance offers basic coverage and costs anywhere between $500 to $1,500 per year.

You might also consider purchasing professional liability insurance, commercial property insurance, commercial vehicle insurance, and worker’s compensation insurance if you plan to hire technicians as you expand.

Business registration

To start your carpet cleaning business, you have to register it with your state. The most common carpet cleaning business entity formation is a limited liability corporation (LLC). An LLC costs between $40 to $500 to register, depending on your location.
Additionally, you can register your business as sole proprietor which is the lowest cost of about $20 to $40.

How Do You Finance a Carpet Cleaning Business?

After getting a good idea of your carpet cleaning business startup costs, it’s time to obtain financing. There are numerous solutions available for carpet cleaning business financing. Common financing options include small business loans, traditional bank loans, online financing, lines of credit, or credit cards.

Bank loans

You can apply for a traditional loan through a bank or credit union to finance your carpet cleaning business. This type of loan is ideal if you have excellent credit and are willing to wait for loan approval and fund dispersal.

Bank loans tend to take longer to process, but you will benefit from having a fixed rate loan with recurring monthly payments if you are approved.

Small business loans

Some financial institutions have different requirements for small business loans. These typically allow you to apply and seek faster approval to get your business started. Because these loans are meant for small businesses, they have different underwriting and collateral procedures.

Another option for small businesses is an SBA loan. These loans are backed by the U.S. Small Business Administration and reduce the risk for lenders, allowing you to obtain a loan at a low interest rate and low monthly payment amount.

Online financing

When financing carpet cleaning equipment and other startup expenses, you can work with an online financing company. Some online lenders specialize in equipment loans.

This type of financing is a practical solution if you cannot get a loan through a traditional bank or credit union. The equipment you buy goes up as collateral for these loans, allowing these lenders to approve more lenient terms.

DryMaster works closely with an equipment or business start up cost financing companies called QuickSpark and Clicklease. QuickSpark and Clicklease provide affiliates with a quick, convenient way to obtain carpet cleaning equipment financing.

Filling out an application with these financing companies is simple; however, you should speak with DryMaster before completing your paperwork to ensure you have accurate pricing information.

Line of credit

A business line of credit is midway between a loan and a credit card. Lines of credit allow you to borrow a flexible sum of money while making regular payments at a fixed rate.

This arrangement is beneficial because it helps you avoid taking out a lump sum of money and lets you take out only the necessary amount to start your business. You’ll likely need a credit score of 500 or higher for a business line of credit approval.

Credit cards

While not ideal, credit card financing is an option for your carpet cleaning business. Depending on your startup costs, a credit card may help you finance your carpet cleaning equipment.

For example, the DryMaster affiliate program lets you get started with a one-time equipment package purchase that typically costs under $10,000. This is a manageable balance that you can easily pay down when you begin making between $5,000 and $8,000 per month with your carpet cleaning business.

If you go with a credit card, apply for a business credit card with 0% APR, if possible, so you are not charged interest on your startup purchases.