Furniture Store Remodels

The Need to Fund a Larger Catalog


Witnessing one’s business flourish is a universal desire, serving as a testament to a business owner’s competence. This principle holds true for furniture stores as much as for any other type of company. The furniture store experienced sustained growth over an extended period, reaching a point where embracing new products became imperative for progress.


Moreover, this growth necessitated comprehensive furniture store remodels, creating an environment conducive to showcasing the freshly introduced merchandise. However, given the store’s reliance on seasonal business for most of its revenue, the pragmatic owners were aware that securing a traditional loan might prove challenging.


How Much Financing Is Enough?


To renovate the building and incorporate new stock, the owners had no option but to seek financing, and they prioritized finding a flexible and affordable method with reasonable interest rates.


Once the research was complete, the store identified the necessity of $500,000 to facilitate the process, ensuring its continued growth and scalability in response to the ongoing influx of customers. Armed with these figures, the next step involved evaluating various financing options.

Furniture Store Remodels

An Asset-Based Loan Fits the Bill


The store had various avenues to explore in search of financing; nonetheless, they emphasized the need for cost-effectiveness and flexibility. Given the furniture store’s array of assets that could potentially serve as collateral, the right financing solution held significant potential.


Following an assessment of alternatives such as merchant cash advances, SBA loans, and business lines of credit, the owners ultimately settled on opting for an asset-based loan.

Reasons to Choose an Asset-Based Loan


Asset-based loans, originating from banks or other financial institutions, leverage a business’s assets as security. These encompass a broad range of items, spanning from accounts receivable to equipment and inventory. Moreover, the financing extends to cover up to 85% of the asset value.


Integrating collateral within the equation results in a loan characterized by a favorable interest rate coupled with manageable monthly payments. This option held considerable appeal for the furniture store. Despite the potential 90-day duration for securing funds, the timeline was not a concern. While pressing forward remained paramount for the owners, there was no immediate rush to achieve it.

What Happened After?


This store used the asset-based loan several times as the store continued to grow. Eventually, the brand was able to expand and bring its products to other cities and states. It was challenging to deal with the seasonal nature of the brand alongside the high amount of growth. However, the asset-based loan went forward and the company saw great things happen.


Through a long set of obstacles and accomplishments, the furniture store has an even brighter future in store for it. If all goes well, the company could continue to branch out into new locations and change the world of home decorating for the better.

Furniture Store Remodels

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