Clothing Store Business Loans

Find the Best Small Business Loans for the Retail Business. Compare, Choose, and Save.


Small Business Customers

500 Million+

in Funded Capital


Rating from the BBB


Google Reviews

Best Business Loans for Clothing Store

The retail business is always in need of capital due to the nature of the industry and its challenges. Clothing store owners have a lot to manage when operating a retail business, like getting capital to help cash flow for balancing Inventory, managing fashion trends, purchasing inventory, and meeting payroll before funds come in from customers.

It’s no secret that it’s hard for retail businesses to be given a chance to get clothing store loans or any financing, for that matter, from banks or credit unions. Traditional banks can make it challenging to get funding for small business owners in the clothing store industry. AdvancePoint Capital can provide retail business loans to a clothing store like yours, so you focus on running your business and make it grow.

There are many financing options that business owners can use to their benefit. Finding suitable clothing store loans that work best for your business may take some guidance. That’s why we put together the six best small business financing options for funding in the retail industry. Each of these small business funding options offers unique benefits and qualities that may work for your clothing store to help your business grow. Let’s take a look.

The 6 Best Small Business Loan Options for your Clothing Store

1. Long-Term Business Loans for Clothing Stores

Long-term business loans have a repayment duration of 2 years or greater. These long-term business loans offer a fixed lump sum upfront, repaid over an extended period (2 to 10 years), with the costs based on a principal and interest rate. Long-term business loans are usually for large expansion projects that require financing. Lenders do have stricter credit requirements than other options are typically for an established business. This business term loan would be considered a conventional loan.


Product Information

Interest Rates: Interest rates starting treasury index plus 1% to 2.5% (currently 5.5%)
Repayment Terms: 2 to 10 years
Fees: Origination fees 0% to 3%
Payments: Monthly or bi-weekly payments
Credit Standards: All types considered, good to excellent personal credit score preferred


Learn More

2. Small Business Line of Credit for Clothing Stores

A small business line of credit is an open, revolving line that allows a small business owner to draw on-demand funds and make purchases up to a specific limit. A business credit line requires renewal, either semi-annually or annually, to be extended. A business line of credit is great for cash flow concerns. The most significant benefit of business lines for a retail store is its flexibility, allowing you to draw funds at any time up to a credit limit. It comes in handy when you have to buy inventory in bulk in a hurry and need cash fast.


Product Information

Rates: Starts at treasury or prime rate index plus 1% to 2.5%
Terms: Open revolving credit line
Fees: Origination fees 0% to 3%
Payments: Monthly, bi-weekly or weekly payments
Credit Standards: All types considered, good to excellent personal credit score preferred
Application Process: One-page application, bank statements


Learn More

3. Small Business Administration (SBA) Loans for Clothing Stores

The Small Business Administration (SBA) is a federal government agency that provides programs, guidelines, and loan guarantees to approved lenders for business loans. The SBA is not a lender and merely provides SBA guarantees that allow approved lenders to take on the risk of business lending with attractive rates and terms that could not normally be afforded to small businesses.


Without the SBA to provide guarantees, the approved lender would not be comfortable lending under the terms outlined by the Small Business Administration. The Small Business Administration’s SBA loan terms are very popular but difficult to acquire due to the lenders’ requirements, guidelines, and restrictions. AdvancePoint Capital can help guide retail stores through the process in a clear, fast, and efficient manner to have the best likely hood of approval.


Most Popular SBA Backed Loans:

  • Standard 7(a) SBA Loan Program – This is the SBA’s primary program designed to provide working capital to small businesses. Like the guaranty percentage and loan amount, the terms and conditions may vary by the type of loans to small businesses.
  • 504 SBA Loan Program – This is a powerful commercial real estate loan program that will provide small businesses another avenue for business financing while promoting business growth and job creation.


Product Information

Interest Rates: Rates starting at treasury index plus 1% to 2.5%
Repayment Terms: 3 to 25 years
Fees: Origination fees range from 0% to 3%
Payments: Fixed monthly payments
Credit Standards: Good to excellent personal credit score preferred, but all types considered.
Documentation: You will need to provide complete documentation for SBA loans. Application, six months of business bank statements, two years of business tax returns, year-to-date profit & loss, a balance sheet, and more documents may be requested upon review.


(New) Paycheck Protection Program (PPP) SBA Loan – The Small Business Administration (SBA) has established the SBA Paycheck Protection Program loan to fund small businesses affected by the COVID-19 crisis. Contact AdvancePoint Capital for additional information about this disaster relief.


Learn More

4. Short Term Business Loan for Clothing Stores

Short-term business loans are loans that have a repayment duration of 6 to 18 months. Short-term loans feature a fixed lump sum of money offered, with a set payback amount calculated using a factor rate. This type of short-term loan is popular among many business owners that cannot get approved through traditional means because of documentation requirements or credit tolerances.


Product Information

Rates: Factor rates ranging from 1.09% up to 1.45%
Repayment Terms: 6 to 18 months in duration (typically 12 months or less)
Fees: Origination fees 0% to 5%
Payments: Weekly, bi-weekly, and in some cases, daily
Credit Standards: All types considered
Application Process: One-page application, bank statements


Learn More

5. Business Cash Advance for Clothing Stores

Business cash advances (BCA) are a type of purchase of future sales agreement that advances future sales at a discount to the business. The business is responsible for paying back a fixed amount (also known as a specified amount). The difference between the advance amount and the specified amount is called the “factor rate or cost.” A fixed percentage of future overall sale deposits is the method used for repayment.

The payments are collected by an ACH fixed daily or weekly from the business bank account based on the specified percentage of future deposits.

Reconciliation can occur at the end of every month. If the fixed payments taken are more than the set percentage of deposits in the agreement, a business owner can request a refund for overpayment so that the set specified percentage of revenue matches the sales volumes. That’s what makes it an advance and not a loan.


Product Information

Rates: Factor rates from 1.09% up to 1.45%
Repayment Terms: No term limits as its an advance (payoff depends on future revenues)
Fees: Origination fees that range 0% to 5%
Payments: Weekly or daily
Credit Standards: All types considered, from poor credit to excellent
Application Process: One-page application form, bank statements


Learn More

6. Merchant Cash Advances for Clothing Stores

A merchant cash advance (MCA) is also known as a purchase of future sales agreement that operates very similarly to a BCA. The most significant difference is the repayment process, which is connected to the future credit card revenue instead of overall deposits. No fixed payment is deducted from the business bank account. The set percentage of future card sales payment method is used. That’s what makes it an advance and not a loan.  A business owner may use this option because most of the sales payments from a retail store come from credit cards.


Product Information

Rates: Factor rates 1.09% up to 1.45%
Repayment Terms: No term limits as its an advance and not a loan (payoff depends on future revenues)
Fees: Origination fees range from 0% to 3%
Payments: Fixed percentage of future credit card revenues as payment
Credit Standards: All types considered
Application Process: One-page application, bank statements, merchant processing statements


Learn More

Benefits of Business Loans for Clothing Stores: Why Do Retail Businesses Need Business Loans?

Working Capital/Cash Flow

Clothing stores can be challenging to manage. A business owner at a clothing store needs to balance customers, inventory purchases, seasonality, and trends, not to mention employee payroll, which all impacts cash flow.

Purchase Inventory

Whether you need to purchase inventory monthly or seasonally, inventory purchasing can be a science and requires purchasing power that cash flow alone simply can’t support. Inventory loans should always be part of your plans, and an inventory purchase financing option is available on demand when operating the business.

Renovations/Facility Maintenance

When running a clothing store, the facility needs to have a customer experience that is appealing, accessible, and convenient. Clothing store owners may need to renovate the facility to draw in or maintain customers against the competition. Projects such as these require various business loan products. Real estate business loans may be necessary to improve the retail store property due to the high costs of renovations.

Marketing and Advertising

Many business owners need advertising to maintain and grow their customer base. Small business funding allows you to design and optimize a website for greater exposure and access to other marketing methods, including pay-per-click advertising, SEO, social media, and buying leads. Sometimes you will need an employee to manage a social media campaign showing your services on a regular basis. Traditional outlets like radio, newspaper, and signage may also help grow your business.

Making Payroll

People are the heartbeat of a clothing store. As a clothing store grows, payroll will grow into something that must be managed and maintained with zero tolerance for cash flow shortages. Unexpected issues related to the clothing store receivables can put a business in a position they can’t afford to be in, which is missing a payroll. Small business funding is a way to ensure your people will always get paid.

Equipment Financing

Retail stores don’t have the exact equipment needs as a manufacturer. Still, sometimes equipment loans may be needed for software and development for online shopping on your website, store fixtures, or perhaps a coffee machine for hospitality reasons.

Why AdvancePoint Capital?

With AdvancePoint Capital, you’ll get the benefit of professionals, experience, and a marketplace of online lender networks. Our simple application process and a trusted name in the small business loan industry make it easy to get started and find the best business loans for clothing stores. Let us help you find your desired loan.

  • Experience – We have been funding clothing stores for years.
  • Trust – Excellent reviews and feedback from retail stores.
  • Loan Specialists – We are experienced small business funding specialists who know the retail clothing industry in and out.
  • Affordable – No cost, no commitment quotes
  • Products – A variety of business loans through our lender network. We don’t just provide what we have; we offer the best loan for what’s available in the marketplace.
  • Reviews – Check out our positive reviews from many small business owners on Google reviews.

Business financing can be intimidating, but it doesn’t have to be. Financial documentation may seem daunting if you’re dealing with a bank or lender — but with AdvancePoint Capital, we can find a business funding option that will provide the best impact for clothing stores. When banks say no, we say yes to getting your business money.

Frequently Asked Questions about Retail Business Loans

Finding the best business loans for a clothing brand or line requires assistance from a professional with knowledge of the space. Program qualifications dictate what you can get approved for as a new business versus an established one.

Yes, there are many loan options that you can take advantage of, even if you have a poor credit history. A business line of credit, shorter-term options, and invoice financing are great options for florists struggling with creditworthiness.

It is possible to obtain money for startup financing for a clothing store, but the loan options may be more limited and difficult to qualify for. Banks typically will say no to start-up funding, but the SBA has some incredible financing opportunities for startups. However, SBA financing is not easy to be eligible for and may require excellent credit health from businesses that are applying for financing as well as a great business plan.

The Bottom Line

When searching for retail loans for your business, the bottom line is that you have to evaluate all the financing options available in the marketplace. You shop for insurance companies, don’t you? The same goes for acquiring a retail loan. Bank loans aren’t always the way to go due to a lack of flexibility with lending based on credit, cash flow, and financials for loans that a bank would offer.

AdvancePoint Capital can take those challenges you may have at getting approved at banks and provide assistance to turn those problems into solutions with various loan programs from our lender network that will help you choose the best option for your business.

The fast, convenient and straightforward way to get the money you need for your clothing store – now!

Get your quote today by filling out our simple form.