Best Business Loans for Retail Stores
Retail stores face new unique challenges in that they have to blend online shopping and walk-in shopping for customers. Retail stores have to 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 a financial business product to use when necessary is essential for most retail businesses.
AdvancePoint Capital can provide that working capital to Retail businesses like yours for cash flow so you can focus on running your business and make it grow.
The 4 Best Business Loan Options for Retail Stores:
Short Term Business Loans for Retail Stores
A short-term business loan is a financing option that is available when your business doesn’t qualify for a business line of credit from a bank. Short-term business loans typically have a duration from 6 to 18 months and provide a fixed amount of money, with a fixed cost, unlike that of principal and interest loans. This product has easier standards for a qualification that that of traditional business loans when it comes to financials and credit.
Highlights of Short-Term Loan:
- Accepts all types of credit from Excellent to poor
- Typically NO financial Statements are required such as tax returns, profit, and loss statements, or balance sheets
- Low monthly or annual revenue requirement than that of traditional banks
- Fast process with as little as one day from application to funding
Business Line of Credit for Retail Stores
A business line of credit offers much more flexibility than that of a business term loan. The biggest advantage of a business line of credit is that you have to ability to draw money when you need it instead at the time of consummation like a business term loan. Business lines of Credit operate more like a credit card, which is a revolving line of credit and allows you only to pay principal and interest on your outstanding balance.
Highlights of a Business Line of Credit:
- Ability to draw money when needed instead of a time of consummation
- interest only paid on the outstanding principal balance
- Typically offers lower costs and fees than that of short-term loans
SBA (Small Business Administration) Loans for Retail Stores
A business credit card is a bank-issued plastic card that allows a business owner to purchase goods and services at will both offline and online. The card operates as a revolving credit line that has a credit limit and charges principal and interest on the balance of the account on a monthly basis. This is a very popular choice as the card is flexible in repayment with lower monthly payments than business loans.
Highlights of SBA Financing:
- Offers the lowest rates in the Industry
- Longest repayment terms from 1 to 25 years
- Low monthly payments compared to their counterparts
- Use of money fits most needs of small business owners
Business Credit Cards for Retail Stores
This is a bank-issued plastic card that allows a business owner to purchase goods and services at will both offline and online. The card operates as a revolving credit line that has a credit limit and charges principal and interest on the balance of the account on a monthly basis. This is a very popular choice as the card is flexible in repayment with lower monthly payments than business loans.
Highlights of Business Credit Cards:
- Principal & Interest instead of fixed costs
- Incentivized to pay off early with No prepayment penalties
- Unlimited use of funds
- Offers flexible payments with low monthly minimum payments
Benefits of Retail Store Business Loans
One of the great challenges of Retail businesses is cash flow. Retail businesses have to balance inventory, execution of process, and the overall customer experience constantly. Most retail 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 retail 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 financial business credit plan to support your marketing and advertising your business will suffer. Retail Businesses need advertising to maintain or grow their customer base. Business financing 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 Stores We Serve
- 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
Why AdvancePoint Capital?
- Experience – with Retail Industry. We have been funding 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
- Products – A Variety of Retail Store Business Loan Products. We don’t just offer what we have; we offer what’s available in the marketplace.
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