Why Business Furniture Financing is a Smart Investment for Your Growing Company

When you’re building a new business, you have a lot on your mind. From day-to-day operations to long-term goals, you’re usually thinking about cold, hard numbers but you shouldn’t get so focused on the numbers that you overlook some of the more abstract or aesthetic parts of your company for instance, office furniture.

One study suggests the right office furniture can increase employee productivity by as much as 32%, but the benefits of furniture are often less tangible and quantifiable. The right furniture can give your employees a boost, but it’s not a small purchase. Business furniture financing can help your business afford high-quality furniture.

In this article:

• The benefits of having the right office furniture for your small business.
• Financing solutions like furniture store loans, working capital loans, and more.
• How to get business furniture financing.

What are the benefits of quality office furniture?

The right office furniture can have a number of benefits for your workplace, from employee health to establishing the right brand identity. Some of the key benefits include:

• Increased productivity: Employees perform better when they’re happy and comfortable. So ergonomically designed, supportive furniture like office chairs reduces the risk of back pain and posture-related issues and promotes employee well-being.
• More collaboration: Gone are the days of isolating cubicles! Modern workspaces foster collaboration by offering more open floor plans with dedicated areas for meetings, focused work, and relaxation which allows employees to interact and share ideas more easily.
• Increased efficiency: Innovative furniture like standing office desks, acoustic panels to absorb sound, and couches and desks with electrical outlets allow employees to find the best working arrangement for themselves and get a mental and physical boost from their work setup.
• Customer comfort: Business owners that offer a waiting area or meet clients at the office should provide comfortable, attractive furniture that puts clients at ease when they come in to do business.
• Brand identity: Furniture can reflect your brand identity, whether you’re a futuristic startup, more of a classic service business, or something else, decor is a vital part of your brand.

With the right furniture, you can promote a collaborative, comfortable environment for your employees that improves morale and supports better decision-making. Business furniture financing can help you achieve those goals.

Why should you finance office furniture?

Whether you’ve just opened a new office location or you’re thinking about refreshing your office, office furniture is very expensive. It may address some business needs, like improving employee morale or offering customers a more comfortable experience, but that doesn’t make it any less of an investment.

Paying for a complete furniture upgrade can put a significant dent in your cash flow, but business furniture financing allows you to manage those costs over time. Some key benefits of office furniture financing include:

• Better cost management: Business loans cost more money in the long run due to interest rates and loan fees, but it’s usually worth it to reduce the immediate cost through monthly payments.
• Tax benefits: Office furniture is a necessary (and large) business expense. You may deduct the costs of furniture from your annual tax return and may be eligible to get a tax deduction on interest paid on business furniture financing, too.
• Flexibility: You can tailor a business furniture financing or leasing plan to your specific tax, accounting, or cash flow situation. A loan from a furniture store could offer more competitive rates than a standard business loan.

Business furniture financing options

Whether you want to get a small business loan to meet a range of expenses or explore individual furniture store loans, there are many ways to cover furniture costs upfront and pay them back later. What lenders and terms are available to you is subject to your credit approval and business finances. Each option may have a different application process and eligibility requirements.

Some of the best business furniture financing solutions include:

• Furniture store loans: Loans from furniture stores allow you to work with the store’s lending partners to quickly get approved for a loan. These options offer flexible terms depending on your credit score and ability to provide a down payment and can be a great option if you don’t want to go through the hassle of researching and applying for a larger loan. It’s an application only kind of loan that can save you time at the store.
• Equipment financing: If you’re willing to do some more legwork, you could find a lower interest rate and longer monthly terms if you shop for an equipment leasing or loan option from an independent lender.
• Term loans: This flexible financing solution grants you an upfront lump sum of cash that you can use for a variety of business needs, including furniture. If you’re opening a new location or completely renovating a space, a term loan gives you the capital necessary to pay for many expenses in addition to furniture. Short-term loans, like working capital loans, may allow you to make the purchases and get out of debt within a year or so.
• SBA loans: Loans backed by the U.S. Small Business Administration (SBA) are very competitive but SBA loans offer several funding options that could serve as business furniture financing for qualified applicants.
• Business lines of credit: A cross between a loan and a business credit card, a line of credit gives you access to a maximum amount of credit. You only pay interest on what you use, so if you draw on the credit to purchase couches or office chairs, you must repay that amount plus interest in the statement period. A revolving line of credit gives you access to the full amount again once you’ve repaid what you used.

How to get business furniture financing

Depending on the option you’re using, business furniture financing can be extremely simple. If you finance furniture store purchases with the store, you generally just have to provide a little information to run a credit check. You can get approved for a loan in a matter of minutes.

That said, if you envision a furniture purchase as just one part of a larger business goal, you may wish to pursue a larger loan amount. In that case, it’s important to do your research and properly prepare for a loan application. This is a good step-by-step guide:

1. Determine funding needs: Create a business plan that outlines exactly how you’ll budget the loan proceeds. This will both help you understand what you can afford to borrow and communicate to the lender that you have a concrete plan to pay them back.
2. Compare lenders: Depending on your financial profile and creditworthiness, you may be eligible for different loan products or interest rates between lenders. Take the time to shop and compare loan offers to figure out what’s best for your business.
3. Gather documentation: Documentation requirements vary, but usually you’ll need your basic business information, financial statements, and business tax returns.
4. Apply: Most lenders today offer an online application process, but others require in-person financing applications. Make sure you know what’s needed before you apply.

As we noted before, one benefit of furniture store loans is that they can process very quickly — you just can’t use the loan for anything besides furniture from that store.

Final Thoughts

The right office furniture can have a major impact on your employees’ happiness and productivity. Not only that, but it can provide benefits to clients as well and become an important part of your brand identity. No business owner wants to run a place with a reputation for dinginess.

Furniture is a major expense, but business furniture financing can help your business improve its aesthetics and provide a better workplace for employees without significantly impacting your cash flow.

FAQs about business furniture financing

Why should you improve your business furniture?

Getting better business furniture has many benefits for both employees and customers. Employees who are more comfortable, happier, and better able to communicate with their colleagues are more likely to be productive, efficient, and creative. Customers want to work with businesses that prioritize their own comfort when they’re waiting or meeting with employees, too.

What are furniture store loans?

You can finance furniture store purchases with a loan from furniture store partners. Most furniture stores partner with lenders to offer fast, affordable financing for in-store purchases.

What are the options for business furniture financing solutions?

There are many options to fund business furniture purchases, both from furniture stores themselves and from independent lenders. If you’re not interested in a furniture store loan, you can explore term loans, equipment loans, or business lines of credit.

Why should you finance rather than buy furniture outright?

While it’s less expensive to purchase furniture upfront in full, such a large purchase can strain your business’s working capital. It could deplete an emergency fund or make it difficult to pay other operating expenses. Financing allows you to pay off the furniture over time, putting less of a debt in your monthly revenues.

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