The resources here are one calculator and three worked checklists: the records a woodworking shop can gather, the steps before a loan request for new tooling, and what a business plan can cover for a woodworking shop that signed a cabinet contract.
Business loan documents checklist for a Goshen, IN woodworking shop pricing an edgebander
An invented Goshen, IN woodworking shop wants an edgebander for its cabinet-door line. Before any partner sees the request, the shop can gather these records. Which of them a partner asks to see is that partner’s call.
- The seller’s written quote for the edgebander, naming the model and when it ships
- Statements from the shop’s business checking account for the past year
- The shop’s two latest filed business tax returns
- A list of open jobs, with the contractor or homeowner and the amount due on each
- Every loan, lease or credit line the shop already pays, with the amount due each month
- The owner’s ID and the business registration details
- A short note on what the edgebander replaces and which jobs it serves
None of these records go on the request form. Those papers matter on the phone call and in any partner review that follows.
How to prepare for a small business loan when a Goshen, IN woodworking shop prices new tooling
- Get a written quote for the woodworking shop’s tooling, such as a shaper cutter set and router bits, with the price and lead time
- Run the price, any down payment, a rate and a term through the production equipment loan calculator
- Set that monthly payment beside the smallest month of deposits in the past year
- List the current loan and lease payments, so the new payment is not judged alone
- Decide whether the tooling should be paid for over its working life or sooner
- Call (574) 369-5896 with the quote and those figures in hand
Illustration only, invented figures: $14,750 of shaper and router tooling with $1,750 down leaves $13,000 to finance. Spread over 36 months at 11.6% a year, that invented $13,000 costs $429.31 a month; the shop hands over $15,455.16 in all, $2,455.16 more than it borrowed.
Business plan for a loan request: notes for a Goshen, IN woodworking shop taking on a home builder’s cabinet contract
A business plan written for a loan request does its job in a handful of pages. For an invented woodworking shop that signed a contract to supply cabinets for a home builder’s houses, those pages can answer what a partner may ask:
- What the money pays for: the panel stock, hardware and finishing supplies the contract needs before the builder’s first payment
- How the contract pays: the builder’s payment schedule and the invoice terms
- Who does the work: the current crew and any hires the contract needs
- What already goes out each month: rent, payroll, and loan and lease payments
- What happens if a house is delayed: the cash on hand and the other work in the shop
Panel stock bought against a signed contract fits inventory financing; pay for added hires before the builder pays fits working capital.
The production equipment loan calculator, and what its result leaves out
Four figures go into the calculator: what the machine costs, the cash put down, the yearly rate and how many months the payments run. Next to the monthly payment it shows the interest over the term and the total cost.
Its result leaves out sales tax, delivery and rigging, any fees in an offer, and the shop’s own time while a machine is set up. A lease has its own payment and end-of-term option, so the equipment financing page treats leases apart from the loan math.
By Frostpine Loans · Updated