Loan Options for Home Remodelers


Jeffrey Bumbales

If you are in the business of remodeling homes, you have the skills required to take a structure down to its bones and then rebuild from that point, creating something amazing from it. The business itself is similar, but instead, home remodelers need a solid foundation of funding to build off of.

Finding funding quickly and with the right terms for your needs is one of the most important things you can do to support your business. When you begin a remodel, you don’t have 30 to 90 days to wait for the working capital required to move forward with demolition or reconstruction.


Remodeling Funding Needs Include:
  • Making payroll and paying subcontractors. Whether you have employees or you hire sub-contractors, you retain good, qualified help only if you are able to pay them on time.
  • Making payments to your material suppliers. You may have a deposit from your client, but you won’t see the balance due until mid-point or at the conclusion of the project. Suppliers need to be paid and you need working capital today to do so.
  • Those unexpected disasters along the way. Remodeling can uncover issues with a structure nobody anticipated. Once your client approves the added expense to address the unexpected, you must be able to purchase extra materials and pay for added labor right away.
  • Daily operation expenses add up. From equipment to office expenses, you need to keep your business running smoothly each day.

There are a few loan options to help you meet current expenses and take on the unexpected issues that happen during a remodel. The bottom line is you need a funding solution that can provide the money you need quickly and effectively.


Rebuilding with a Bank

According to an article at, businesses with less than 20 employees and or those owned by women or minorities are have a difficult time obtaining small business loan approvals from conventional lenders.

Essentially, unless you have excellent credit, a long sparkling history of financial business success and valuable collateral, your chances are slim that you will be approved.

Other Drawbacks:

  • If you do have all the credentials, funding is not quick. It may take 30-60 days to receive the cash you need.
  • You risk your personal property. Bank lenders often require personal guarantees from the small business owners.
  • Start-ups are not typically approved. Banks turn away requests for start-up loans because they require three years of business financial data as backing.


Small Business Association (SBA)

The SBA understands the needs of small businesses today. According to, the difficulties of securing conventional loans are the reason they offer several alternative options for start-ups and growing small businesses.

For example, their microloan program will lend up to $50,000 to help with start-up cost, cash flow, purchasing supplies and overall expansion. The route of this loan is not typical either. The SBA, a government agency, provides funds to their designated lenders, which are nonprofit community-based organizations with experience in lending and technical assistance. These organizations then administer this microloan program to applicants that meet their criteria.

Microloans can be used for:

  • Working capital to keep your business running smoothly
  • Inventory or supplies to keep the remodeling project on schedule
  • Machinery or equipment to help you get the job done

The Drawbacks:

  • Your credit rating is important in loan approval.
  • It is not a fast solution. The government is involved and the application process and approval can take 90 days.
  • The average microloan is only about $13,000.
  • An SBA microloan cannot be used to pay existing debts or to purchase real estate.
  • The SBA microloan may require you to fulfill training or planning requirements before your loan application is considered. The purpose is to expand your skills and help your business succeed.


Remodeling with Alternative Lenders

If you are a creative thinker, you can appreciate finding alternative solutions to get the funding you need quickly and easily. Alternative lenders create specialized loan solutions to fit just about every need. These custom-design options include small business loans and lines of credit, often with more flexibility and ease than banks or the SBA.

Alternative lenders offer:

  • A quick, easy application process to secure your loan.
  • An approval process that takes into account your business potential, what you need the funding for, and the overall health of your business.
  • Less importance is placed on your credit history, or in other words, approval is possible even when your credit score is less than perfect.
  • Speed in getting answers, approval and the cash you need.

The Drawbacks:

  • Interest rates may be slightly higher than a bank, but you stand a greater chance of approval and fast access to funding.



It’s not uncommon for home remodelers to need extra funding. Whether the money is needed for everyday expenses or for special equipment or building materials, you should take some time to research the various working capital solutions available. Put simply, when seeking the perfect loan for your business, it pays to know your options. To learn more about creative funding options, contact Credibly today!