How to Finance Your Longarm: Real Advice for Starting a Quilting Business

Why Financing Matters When Starting a Longarm Quilting Business

For many quilters, starting a longarm quilting business means making a significant investment in equipment. The primary keyword, starting a longarm quilting business, often leads to questions about how to afford a quality machine without putting personal finances at risk. Jackie Paulson and Carrie Radloff from American Financial Partners (AFP) have spent nearly two decades helping quilters navigate this process, offering tailored financing that takes into account the unique needs of quilting entrepreneurs.10:51

Unlike traditional banks, AFP understands both the machines and the business models involved. As Carrie explains, “We understand quilting, we understand the quilting machine, we understand how people make money using the machine, and so just having that advantage is nice”.10:51 This expertise means they can offer more flexible options and a more personal approach than most lenders.

Jackie and Carrie’s background is rooted in small-town values, with AFP based in Gary, South Dakota—a town of just 240 people.2:14 Their approach is personal, not corporate. As Jackie puts it, “We’re just taking a lien on their Gammill machine, you know, when we’re financing them”.8:05 This means you don’t have to risk your home or car as collateral, which is often required by traditional banks.7:53

Their long relationship with Gammill and the quilting community means they’ve seen the full range of customer situations, from hobbyists turning pro to established businesses expanding. Their process is designed to meet quilters where they are, not force them into a one-size-fits-all solution.5:35

How AFP’s Financing Process Works

AFP’s process begins with a conversation, not a credit application. “We really do try to, you know, have that initial conversation really be thorough as well and try and quote payments initially before even taking that step on filling out an application”.8:19 This means you can discuss your plans, concerns, and options before committing to paperwork.

When you’re ready, the application itself is simple and can be completed online. Jackie describes the process: “Typically, we call the customer within about an hour of receiving the application… We try to have a credit decision back to a customer within a business day” 39:00.39:34 Most applications don’t require tax returns, business plans, or extensive documentation—just basic financial information and a conversation about your quilting experience and goals.11:46

Privacy is a priority. As Jackie notes, “If for some reason we absolutely can’t help a customer, that’s a conversation we have with the customer. That’s not something that everybody needs”.41:57 The process is handled directly between AFP and the applicant, keeping your financial details confidential from dealers or salespeople.40:42

This approach removes much of the anxiety from applying for financing. As one dealer described, “It’s not them submitting some application into Cyberworld, they reach out to them directly, answer all those questions, you guys have no pressure on them, you’re simply answering the questions that they ask, giving them the best advice”.9:52

Financing Options: Loans, Leases, and What’s Right for You

AFP offers both loan and lease options, but with some key differences from what you might expect. Jackie clarifies, “A lease is going to be a lease to own. So at the end of the contract, regardless of whether it’s a lease or a finance option, you’re going to own the equipment”.21:28 Most contracts are written as equipment finance agreements, meaning you own the machine from the start, with AFP holding a lien until it’s paid off.22:12

Down payments are typically small or even zero, and you can finance not just the machine but also accessories, training, installation, and even retrofits to existing equipment 11:16.25:44 This minimizes upfront costs and allows you to keep cash reserves for other business needs.

Jackie explains that even retrofits—like adding automation to a hand-guided machine—can be financed, and AFP may use both the machine and new equipment as collateral.26:34 This flexibility means you can upgrade your business as you grow, without needing to pay off your first contract before adding new features or equipment.29:12

For those considering pre-loved or classroom machines, AFP offers the same financing options as for new machines, provided the purchase is through Gammill corporate.43:44 This opens up more affordable entry points for quilters just starting out.

Why Business Financing Beats Using Personal Savings

Many new business owners wonder whether to pay cash, dip into savings, or finance their purchase. Carrie’s advice is clear: “We usually would would tell someone to hold on to their cash or at least hold on to some of their cash, because as you start your business, you’re going to run into expenses for things that you cannot finance”.23:11 Emergencies, opportunities (like buying discounted inventory), and unexpected costs are all easier to handle if you haven’t tied up your funds in equipment.

Jackie shares a story: a customer was able to buy out a local fabric shop’s inventory at a fire sale price because she had kept her cash reserves by financing her machine.24:26 “She would never have been able to do it if she didn’t have the money available,” Jackie recalls.24:44

Additionally, financing under a business name protects your personal credit and can help build business credit for future expansion. “We don’t report to personal credit, so it’s not going to impact a customer’s personal credit score as a new trade line. It’s also not going to affect their personal debt to income if they have future personal financing needs, like a new mortgage or a new auto loan, because it’s written in the business name”.16:52 Even if you’re operating as a sole proprietor, this separation can be a major advantage.

What Lenders Look For: Experience, Intent, and Community

You don’t need an MBA or a formal business plan to qualify for AFP financing. Instead, the team looks for practical indicators that you’re ready to run a quilting business. “We have that conversation with them. Tell us about your background. How long have you been quilting? What are you looking to do with the machine?”.11:56

Even if you’re new to business, years of quilting experience, involvement in guilds, and a network of friends and potential customers all count. “Although you might be new on paper, you’ve been doing this a long time and you have built in customers through your friends and through your guild mates and whatever”.45:03

Jackie and Carrie emphasize that intent matters more than paperwork. “We don’t require a business plan. We don’t typically require anything other than a simple application”.11:32 They know many quilters have informal business plans in their heads, and they ask questions to draw out your real-world readiness, not just what’s on paper.13:15

For those worried about being a first-time business owner, AFP’s experience in the quilting world helps them recognize potential. As Carrie notes, “We ask, you know, how long have you been quilting for? And for so many of you, it’s 25 plus years…you have built in customers”.44:40

Making the Numbers Work: Payments, Income, and Growth

AFP provides practical tools to help you estimate what it will take to cover your payments. “We’ve put together a flyer specific to Longarm where the customer can look at all the different GAML machine options with an average cost of them, what the average payment would be, and see how many quilts would they have to Longarm a month to pay for that equipment”.15:50

For example, if you can quilt one quilt a week, that’s four a month—often enough to cover your payment and start building income.16:21 As your business grows, you can finance additional machines or upgrades, sometimes without paying off the first loan. “We can do multiple machines. You don’t have to pay off your first contract to finance another machine if your business is ready for that”.29:12

Real-world stories illustrate how quickly demand can grow. One new owner received 40 quilt tops from friends and guild members before her machine even arrived.34:12 She was unprepared for the immediate business, but the demand was there, and the payment calculations helped her see how quickly the machine could pay for itself.

AFP’s approach is to help you realistically assess your capacity and income potential, so you don’t overextend yourself. As Jackie says, “We try to make it as simple as we can and as quick as as possible”.40:08

Tax Advantages and Section 179

One of the biggest benefits of financing equipment for your quilting business is the potential tax deduction under Section 179. As Carrie explains, “Section 179 is a code from the IRS tax service that allows a business to write off any equipment that they buy for the calendar year”.36:10 If you finance a $50,000 machine and your business earns $100,000, you can deduct the full $50,000—even if you’ve only made a few payments by year-end.37:40

This deduction can significantly reduce your tax bill and lower the effective cost of your machine. Jackie adds, “They just took $12,500 off of their IRS bill for the year, but they haven’t even paid $12,500”.37:40 Always consult your own tax advisor, but it’s a benefit worth considering as you plan your purchase.

Carrie shares her own experience using Section 179 for a work truck: “My out-of-pocket on that truck was only a few thousand dollars, and I got to take a lot off of my tax bill”.43:06 This is a real advantage for quilters investing in equipment and looking to maximize their business’s financial health.

Financing Retrofits, Preloved Machines, and Upgrades

AFP can finance not just new longarms, but also retrofits (like adding automation to a hand-guided machine) and pre-loved machines purchased from Gammill corporate 25:44.43:44 “A lot of our customers who start with just the long arm itself will come back to us and say, hey, I’m ready for that automation system. Let’s go ahead and add it. We do a lot of that”.26:28

The process is similar to financing a new machine, and AFP may use both the machine and the new equipment as collateral.26:34 This flexibility helps quilters grow their businesses at their own pace, adding features or upgrading as their needs change.

For pre-loved machines, the same programs and pricing apply as with new equipment, provided the machine is sourced through Gammill corporate.44:00 This makes it easier for quilters to enter the business or expand without the full cost of new equipment.

Real-World Success Stories and Final Thoughts

The impact of accessible, knowledgeable financing goes beyond numbers. Jackie shares, “We had a customer come up to us at the Houston quilt market and said… you guys changed my life. Nobody else would believe in me. Nobody else would finance my machine for me. You guys believed in me. I was able to stay home, raise my kids, start my business, and I have a flourishing business now”.47:18

For many, starting a longarm quilting business is a path to independence and a new financial future. With lenders who understand the industry and offer practical support, it’s more achievable than ever. As Carrie and Jackie note, their mission is to help quilters succeed, not just approve loans: “We know what it takes for somebody to be successful in their quilting dream, in their quilting business. We also know what failure looks like”.48:00

Their advice is to approach financing as a tool for growth, not just a means to an end. With the right support and planning, your quilting business can thrive—and you can keep your financial future secure.