Best Business Loans for Retail
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 retail business loan or other financing options so you can make your bank account grow.
The 6 Best Retail Business Loans:
Small Business Loans for Retail
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
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 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 the loan application process a simple, straightforward experience.
Benefits of Retail Business Loan for Small Businesses
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. Business funding, such as a term loan, allows companies to design and optimize the website on the internet for greater exposure and invest in Pay-per-click Advertising, SEO, and buying leads. Traditional methods like radio, newspaper, and signage may also help grow the business, not to mention retail operations that have storefronts and need proper advertising signage.
The internet has become a must and has added additional costs to restaurants. Having a presence on the internet with various sources such as Google, yelp, and trip advisor as well as maintaining a website and work on search engine optimization, so you remain on the top of google search costs money. Also, additional costs for the growth of 3rd party delivery services (Grub Hub, Door Dash, Uber Eats) can be viewed as advertising costs and can eat into the bottom line. Additionally, more traditional sources like mailers and flyers are also advertising mainstay and costs to operate.
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.
As a business grows, payroll will grow into something that must be managed and maintained with zero tolerance for cash flow shortages. Unexpected issues related to construction company receivables can put a business in a position they can’t afford to be in, which is missing a payroll.
Types of Retail Businesses We Serve
- 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
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.
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