For a carpenter or cabinetmaker, the best option depends on what you are financing. Merchant Fund Express is our recommended funder for buying materials for a big job or covering payroll while you wait to get paid; JR Capital fits machines like a CNC router or the work truck; an SBA Microloan suits starting a small shop; OnDeck and Bluevine serve shops with at least a year in business; and SBA Express costs less if you qualify and can wait.
Carpentry has a very specific cash-flow problem: you buy the lumber, hardware and finish before you deliver, and the client pays the balance at the end. A set of kitchen cabinets or a custom closet can tie up your money for weeks. Below we compare the options and explain which one to use for each need in the shop.
Key takeaways
- For machines (CNC, industrial table saw, edgebander), equipment financing usually costs less than working capital.
- For lumber and hardware on a job, short-term money you repay from the final payment is the better match.
- Our recommended funder works with FICO scores from 500, accepts ITIN applicants (no SSN needed) and offers Spanish-speaking support.
- SBA Microloans go up to $50,000 and cover machinery, equipment and supplies, but not paying off existing debt.
- SBA Express goes up to $500,000 and, per the SBA, does not require collateral on loans up to $50,000.
- Collecting a written deposit from every client cuts how much you need to borrow.
The 6 best options for carpenters and cabinetmakers
We ranked by who each option is for. This is not a rate ranking: the cheapest option is useless if you do not qualify or if it takes two months and your client wants to start Monday.
- Merchant Fund Express (recommended funder). Best for job capital: lumber, plywood, hardware, lacquer and your helpers' payroll while you wait on the final payment. It funds $5,000 to $5,000,000, decisions often come in 2–4 hours, and it works with credit from a 500 FICO; better credit and cash flow usually mean better offers. It reviews your sales and deposits, not just your score, and collateral is not required in most cases. It accepts ITIN applicants, offers Spanish-speaking support, and applying is free with no impact to your credit.
- JR Capital. Best for machines and vehicles. Its site lists CNC machines, manufacturing equipment and trucks among what it finances, new or used, from a dealer or a private seller. Its approvals require no down payment (except high-mileage trucks), and terms run 24 to 84 months depending on the equipment's age. It works with established and new businesses. Its legal disclaimer says it does not lend its own money: it sends your application to a network of lenders who set the terms (per its site, checked October 2026).
- SBA Microloan. Best for starting or equipping a small shop. Up to $50,000 through community organizations; per the SBA, the average is around $13,000, rates usually run 8% to 13%, and the maximum term is seven years. It covers working capital, supplies, machinery and equipment, but not paying existing debts or buying real estate.
- OnDeck. Best for a shop with at least a year in business that wants fixed payments. Term loans from $5,000 to $400,000 with terms up to 24 months, or a line from $6,000 to $200,000. It asks for 1 year in business, $100,000 in annual revenue, a business checking account and a 625 FICO. It does not lend in North Dakota (per its site, checked October 2026).
- Bluevine. Best for an LLC or corporation that buys materials job after job and wants a line that refills as you repay. Lines up to $250,000; it asks for $10,000 in monthly revenue, a 625 FICO and 12 months in business. It accepts an SSN or ITIN plus an EIN; it does not accept sole proprietors (per its site, checked October 2026).
- SBA Express loan. Best if you qualify and want lower cost to equip or expand the shop. It is a 7(a) track with a $500,000 maximum; per the SBA, no collateral is required on loans up to $50,000, and above that the bank applies its own policy. If you qualify, an SBA loan usually costs less. Since March 1, 2026, every owner must be a U.S. citizen or U.S. national.
Comparison table
| Option | Best use | Time in business | Minimum credit | ITIN | Collateral |
|---|---|---|---|---|---|
| Our recommended funder | Job capital and payroll | Reviews sales and deposits | FICO 500+ | Yes | Not in most cases |
| JR Capital | Machines and vehicles | New and established | Not published for equipment | Not published | The equipment itself |
| SBA Microloan | Startup and smaller equipment | Depends on the microlender | Depends on the microlender | Depends on the microlender | May be required |
| OnDeck | Term loan or line | 1 year | FICO 625 | Not published | Not in its summary |
| Bluevine | Line of credit | 12 months | FICO 625 | Yes, with an EIN | Not in its summary |
| SBA Express | Equipment, expansion, capital | Depends on the bank | Depends on the bank | No: owners must be citizens or nationals | None up to $50,000; then bank policy |
Facts from each official site, checked October 2026. Where it says "not published", ask before you apply.
How we chose
How we chose. We do not hand out ratings or points. We compare every option on the same criteria: speed, minimum time in business, minimum credit, whether it accepts ITIN or owners without an SSN, documents, amounts and collateral. If we could not confirm a fact on the official site, we left it out. Read the full methodology in how we rank business funding options.
For carpentry we give extra weight to two things: that the term matches the life of what you buy (a CNC lasts years; lumber is gone in one job), and that the option works for someone who gets paid as a deposit up front and a balance at the end.
What to finance with what: a guide for your shop
| Need | Option that usually fits | Why |
|---|---|---|
| CNC machine or router | Equipment financing | The machine backs the payment and the term can run several years |
| Saw, planer, edgebander, compressor | Equipment financing or a microloan | Mid-size amounts with a long useful life |
| Lumber and hardware for a kitchen cabinet job | Working capital | Repaid from that same job's final payment |
| Work truck or van | Vehicle or equipment financing | The vehicle backs the payment |
| Bigger shop or spray booth | SBA Express or 7(a) | A large project that justifies waiting for lower cost |
| Contract with a builder who pays in 30 or 60 days | Line of credit or invoice factoring | Covers the wait without a new loan every time |
If your next step is growth, such as more crew or a second shop, read our guide to a business loan to expand carpentry services. For machines specifically, compare the best equipment financing options.
How to get ready to apply
- Collect written deposits. A contract with a 30% to 50% deposit, for example, covers part of the materials and cuts what you need to borrow. It also leaves a clean income trail.
- Run everything through the business account. Cash, Zelle, builder checks. Funders look at your deposits.
- Get machine quotes. Ask for written quotes with model, year and price. For used equipment, ask for photos, hours of use and maintenance history.
- Build a portfolio. Photos of finished kitchens, closets, doors and furniture, with what you charged for each. Not every funder asks for it, but it helps explain your business, especially for a microloan.
- Keep your license and insurance current. If your state requires a contractor license to install, keep it up to date along with your liability insurance.
Most funders will also ask for a government ID, your EIN or business registration, and recent bank statements. Having a one-page list of your active jobs, with start dates and expected payment dates, makes it much easier for anyone reviewing your file to see how the money comes back.
Common mistakes when financing a carpentry business
- Buying the CNC with short-term money. A high payment over a few months can choke your cash flow; a machine that lasts years calls for a term of years.
- Starting a big job without a deposit. If the client cancels, you are left with lumber cut to their measurements and a debt.
- Borrowing more than the job costs. Add up materials, labor and a reasonable margin, and borrow that.
- Ignoring payment frequency. A daily payment when your checks come every six weeks does not work. Ask about weekly or monthly payments.
- Comparing only the rate. Term, fees and speed all have a cost. If you need fast capital for a job that is already signed, you can apply here; for a machine, also get an equipment financing quote. See more comparisons in our small business funding rankings. Leer en español
Frequently asked questions
What is the best loan to buy a CNC machine?
For a CNC, equipment financing is usually the best fit, because the machine itself backs the payment and the term can run several years. JR Capital, for example, says it finances new or used CNC machines with terms of 24 to 84 months. If you qualify, SBA Express can cost less but takes longer.
Can I get a carpentry business loan with an ITIN?
Yes. Merchant Fund Express accepts applicants with an ITIN, no SSN needed, and reviews your sales and deposits with credit from a 500 FICO. Bluevine accepts an ITIN plus an EIN if your business is an LLC or corporation. SBA 7(a) loans, including Express, now require owners to be U.S. citizens or nationals.
How do I finance lumber for a big job?
First, collect a written deposit. Whatever is left you can cover with working capital or a line of credit and repay from the final payment. Borrow only what the materials and labor for that job cost, and make sure the payment schedule lines up with when you get paid.
Can a cabinetmaker who works alone get financing?
Yes. Many funders work with sole proprietors. What matters is that your sales go into a business account and that you can show a few months of deposits. Keep in mind that Bluevine only accepts LLCs and corporations, so it is not an option if you operate as a sole proprietor.
Can I finance used machinery from a shop that closed?
Often, yes. Some equipment funders accept private-party purchases; JR Capital says on its site that it finances equipment from dealers or private sellers. Check the hours and condition of the machine, get a bill of sale, and confirm there is no outstanding lien on it.
What do I need for an SBA Microloan for my shop?
Each organization sets its own requirements, but most ask for a business plan, ID, bank statements and sometimes collateral or a personal guarantee. The amount goes up to $50,000 and covers machinery, equipment and supplies, not paying existing debts. Many microlenders also offer free business coaching.