What do lenders want to see in a sign shop’s equipment and work-in-progress?

A sign shop’s equipment is a mix of large format printers, routers, cutters, vehicle lifts and finishing tools. A lender starts with a list: make, model, serial number, age, condition and how the machine was acquired. Service records help, as does an independent equipment appraisal when the machines are significant to the loan.

Think about how specialised each machine is. A lender prefers equipment that another shop would buy, so be ready to say which pieces are common and which depend on a particular workflow. Also show who really owns each machine, since leased equipment cannot back a loan.

Work in progress is harder to judge because it is partly finished and tied to a customer. Lenders look for signed orders, deposits and clear approval trails. They also check how long jobs sit between production and invoicing, whether disputes or remakes are common, and how materials on hand are valued. Show your inventory of vinyl, substrates and inks separately from jobs underway. Your accountant can prepare these schedules so the figures tie to your financial statements. Keep a record of any customer who has stopped paying on a finished job, because lenders ask about it.

Key takeaways

• Prepare an equipment list with serial numbers, service records and proof of ownership.
• Back work in progress with signed orders, deposits and approval records.
• Show materials on hand separately from unfinished customer jobs.