Get the Best Business Loan for Your Retail Store
A business owner in the retail space face many challenges. A retail business has to effectively manage many factors such as seasonality of shoppers, price competition, inventory requirements, employee needs, process execution, and, most importantly, customer experience. Getting capital to help run the business is essential to fulfilling those needs. Having access to a retail business loan to use when necessary is essential for a retail store to succeed and grow.
Going to a bank, credit union or other lending institutions can be a challenge when trying to get bank loans for your retail business, let alone if your a new business. The criteria will be stringent and business financing options will be limited. A bank loan may not be in the cards, so what do you do next?
Many small business owners turn to AdvancePoint Capital's lender network to provide that small retail business loans or other retail store financing options so you can make your bank account grow.
What is a Retail Business Loan?
Getting capital to help run the business is essential to fulfilling those needs. Having access to a retail business loan or other financing option to use for purchases or pay expenses on demand is essential for a retail store to succeed and grow.
Retail Store Business Loans: How it Works
Going to a bank, credit union or other lending institutions can be a challenge when trying to get bank loans for your retail business, let alone if your a new business. The criteria will be stringent and business financing options will be limited. A bank loan may not be in the cards, so what do you do next?
Many small business owners turn to AdvancePoint Capital's lender network to provide that small retail business loans or other retail store financing options so you can make your bank account grow.
Retail Business Loan Options
Small Business Loans for Retail Stores
Retail business loans are term loans with a fixed loan amounts, interest rates and payments. There are many uses for a retail loan including working capital, inventory, and business expansion to name a few. Business term loans could be short term loans or long term loans depending on the need and qualifications.
Business Line of Credit for Retail
Retail business owners use business lines to purchase inventory and wholesale purchasing power. With a business line of credit, you only pay interest rate on outstanding balance giving the retail store the opportunity to repay early as you sell inventory to save money. This product is great for inventory purchases and overall inventory financing.
SBA (Small Business Administration) Loans for Retail Stores
Issued by an approved SBA lender, an SBA loan is a great retail business loan because they have attractive loan terms with excellent interest rates, terms and monthly affordable payments. SBA loans include, but not limited to the SBA 7(a) loan, which is a working capital loan that can help businesses expand. This is not a short term loan so SBA loan requirements can be difficult and good credit history, business credit profile, a good business plan and personal guarantee is required for an SBA 7(a) loan to qualified borrowers, but its worth the effort to get this popular term loan. Let us guide you through the SBA loan process.
Merchant Cash Advance for Retail
Merchant cash advance is not a small business loan, but an advance based off of annual revenue of the business, repaid by the funder taking a fixed percentage of future credit card processing sales. Bad credit is considered for this product as well as reduced documentation for approval. This product is an alternative to traditional retail loans and inventory financing.
Business Credit Cards for Retail Business
A good compliment to retail business loans are credit cards. Sometimes a retail business can be in a pinch and needs to make a quick purchase or pay for an expense. A small business owner can react quickly to these needs with a credit line like a credit card.
Equipment Financing
Equipment loans are a good tool when small businesses have the need to purchase a large amount of equipment and need to finance it over a long period of time. Equipment financing comes in the form of an equipment loan or lease with affordable interest rates.
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AdvancePoint Capital makes your retail loan application process a simple, straightforward experience.
SBA Loans For Retail Stores
Retail stores are uniquely positioned to benefit from SBA loans if looking to expand the business because of its favorable rates and terms not offered by traditional lenders or funders. The Small Business Administration offers a guarantee to SBA approved lenders to promote small business lending in circumstances the lenders would not ordinarily approved for such terms.
The SBA 7 (a) loan is the most popular loan program SBA has to offer. Below you will find details, purposes and benefits of acquiring an SBA loan.
Details
- Maximum Loan Amount $10,000,000
- SBA guarantees the loan to the SBA approved lender
- Terms from 5 to 10 years, with exception for real estate transactions which can go up to 25 years
- Rates starting at prime + 2.75%
Purposes
- Expansion or a renovation of a retail store or retail warehouse facility
- Funds new construction projects
- Can be used to purchase land and/or buildings as well as equipment
- General working capital need as long as the use can be documented
- Under certain circumstance can refinance and consolidate debt
- Funds can be used to start a business or acquire an existing retail store
Benefits
- Maturity of loans are greater than traditional financing
- Monthly payments that are affordable
- Rates and costs are lower than other business financing options
- Fixed terms with no early demand or balloon payment
How to Qualify and Apply for an SBA 7(a) Loan
You must contact an SBA approved lender to qualify for an SBA loan. The following are the basic qualifications needed t apply
- Your retail store must operate at a profit and cannot show losses
- Both business credit and personal credit of the business owner must be very good to excellent
- You must provide collateral in the form of equity like real estate
- Must be a U.S. Citizen
- Must show ability to repay with financial statements
Common Uses and Benefits of Financing for Retail Stores
Cash Flow
One of the great challenges of small retail businesses is balancing operating capital. Retail businesses have to balance inventory, execution of process, and the overall customer experience constantly. Most small businesses are highly competitive, and timing is essential to close sales. Having a business credit facility available is critical to meet those needs.
Marketing & Advertising
A cornerstone to most businesses is the ability to get the word out that their products are available for sale. Marketing online and offline is essential to success and vary from retail business to retail business, but make no mistake about it, if you don’t have a financing plan to support your marketing and advertising, your business will suffer. Businesses need advertising to maintain or grow their customer base.
Making Payroll
Retail employees are difficult to maintain as they are in high demand, tend to be part-time, and are typically not long term employees. If you don't make payroll you will lose employees quickly.
Hire Employees and Managing a Growing Team
There is little doubt that hiring and maintaining a great team to execute the sales process is the lifeblood of a retail business. Expanding a business may require an investment in salaries and signing bonuses that can really burden a business without business financing in place to sure up any short term cash flow issues.
Pros and Cons of Business Financing for Retail Stores
Pro's
- Financing provides access to to funds for purchases and pay expenses
- Provides access to capital for business expansion of a retail store
- A method to build business credit and can lead to future financing
Con's
- Financing adds debt to the balance sheet of a retail store
- Financing payments and to monthly expenses an can put stress on cash flow
- The risk of over extending the business which creates delinquency and or default impairing credit
Types of Retail Businesses We Serve
We serve a range of small to large retail businesses including:
- eCommerce/Online Sellers
- Brick and Mortar Store
- Merchandise Store
- Clothing Stores
- Shoe/Footwear Stores
- Sporting Goods Stores
- Women’s Clothing Store
- Men’s Clothing Store
- Furniture Stores
- Candy Stores
- Liquor Store
- Convenience Stores
- Dessert Shops
- Auto Parts Stores
- Hardware Stores
- Eyeglass Stores
- Tattoo Parlors
- Bridal Shops
- Book Stores
- Pet Shops
- Home Goods Stores
- Department Stores
- and many retailers
What Lenders offer Business Loans to Retail Stores?
There are a variety of business loan originators that offer business financing. The following are a list of the most commonly used financial institutions and originators
- Banks and Credit Unions- Banks and credit unions offer both business term loans, commercial real estate loans, business line of credit and in some cases SBA loans if the bank is an SBA approved lender.
- Business Loan Brokers- Business loan brokers also known as independent sales organizations represent a variety of products from business term loans, lines of credit, SBA loans, invoice financing, equipment financing, merchant cash advance, and other unique products.
- Online Business Lenders- These online financial institutions offer typically business loans and/or business lines of credit.
- Invoice Finance Companies- Invoice finance companies also know as Invoice factors specialize in purchasing invoices from retail stores.
- Equipment Financing Companies- Equipment financing companies offer business loans and/or leases when new or used equipment is purchased from dealers. The equipment itself is used as collateral to extend terms.
- Merchant Cash Advance Funders- Merchant cash advance funders offer the sale of future receivables from a retail store at a discount to the funder.
How to Apply for a Business Loan for your Retail Store
- Chose a lender (business loan originator)- Select a lender or originator that best matches your qualifications with products, rates and terms.
- Take Application- When taking application you will need to select products to apply for first, then fill out the appropriate application for the product as well as provide specific documentation such as bank statements or other financial statements depending on the business funding product you are choosing to apply for.
- Receive Offers- Offers should be delivered by term sheet and/or specific State disclosures. Compare offers from multiple originators and consider all aspects of an offer and not just the rates.
- Select an Offer-Once you have done your homework and compared offers. Notify the lender (originator) of your selection. You will be asked to sign an agreement and provide closing condition documents for final approval and clear to fund once the lender completes all verifications.
- Receive Business Funds- After given a clear-to-fund, the repayment process is set up and your funds are sent to your business bank account.
*Application process may vary depending on the lender and the products you chose to apply for.
Why AdvancePoint Capital?
- Experience – with Retail Industry. We have been funding many retail businesses for years.
- Trust – Excellent reviews and feedback from Retail Companies
- Loan Specialists –Experiences Business funding specialists who know the retail industry.
- No cost, no commitment quotes- We offer No obligation small business loans
- Products – A Variety of Retail Store Business Loan Options from our online lenders network. We don’t just offer what we have; we offer what’s available in the marketplace.
Start to Grow Your Retail Business Now!
Let's Get Your Retail Store Financing Today!
