As a competitive and determined retail business owner, you must know that there is a lot that goes into running a successful retail store. It is a continuous and rigorous effort, and sometime one might tumble due to the financial hurdle. Whether you need a new machine for your clothing retail store or a new gadget for your electronics store, retail business loans can help cover all the costs. Retail businesses do not have a standard structure; the business model of the clothing store is different from the business model of the stationery store. Alternative and traditional lenders are offering custom made business loans satisfy the financial needs of every type of retail business.
Next time you are in a financial crunch, you know where to turn. A retail business loan can help you cover any financial emergency or even if you want to update any POS financing. Let us look at the business option for retail financing one by one, so you can easily pick the most suitable option and fulfill all the needs of your business.
- Term loan
Top on the list is the short and long-term business loans. This is the most ideal funding option in the case of any emergency. With fast access to the funds, you can stay on the track. At times, it gets hard to generate enough revenue to cover the payroll costs, so a short-term loan can provide the aid. Know that this is not the ideal funding option you must be certain about your financial needs. After all fast financing does come at a price.
So, where can you get a term loan? Both alternative and traditional lenders can be offering this business loan. As traditional lenders offer term loan on budget-friendly terms so unless you have a perfect credit score, you won’t cut. Fortunately, alternative lenders are all set to lend a financial hand to your business; in addition to this, you don’t even need a stellar credit score.
A term loan offers a loan amount of up to $5 million, and you can easily make repayments until 35 years. If you are satisfied with the term loan, then you must apply away.
- Equipment Financing
Want to replace the old, outdated pieces of machines with the new updated ones? In this struggling economy, it gets hard to replace all the machines with the new ones, but if you want to stay relevant in the market, it is a must! There is a way you can update the business tool without disturbing the cash flow – Equipment Financing or Equipment Loans. Both alternative and traditional lenders are offering affordable equipment financing, but if you are on a clock, equipment financing from alternative lenders is the best option!
If you apply for equipment financing, you will have total possession on the equipment and you don’t have to offer the money upfront. In this way, you can purchase the equipment mandatory for your business. On the other hand, if you apply for equipment leasing, you will be paying money to the lender to use the equipment. At the end of the lease, you can decide whether you want the equipment or not. If you like to stay up to date, then equipment leasing is the best option.
Your potential lender can give you money up to $5,000 to $5 million, at the interest rate of 7.5%, and the term length of the loan can be up to 5 years. You can access equipment in 3 business days.
- Business credit cards
Other than term loan and equipment financing, you can finance your retail business through business credit cards. A slow season might disrupt the cash flow, to recover from that loss and to keep the business stable, you can use the credit from the business credit card.
The bank or the person issuing the credit card will set a limit; like this the revolving credit so you will only pay interest on the credit that you use. To manage cash flow shortcomings, this is the best financing option. Moreover, through the business credit card, you can take advantage of the rewards program. Either treat yourself or take out the employees for the treat.
Some business credit card comes without the annual fee, for some you need to pay the fee. So before making the final pick, you must choose the business credit score with the lowest annual fee and lowest APR.
- Small Business Administration (SBA) Loans
SBA loans are government-administered loans; you can get the loan at the affordable rate. To cover up the short-term financial problem, you can apply for the SBA 7(a). Through these funds, you will be able to cover the working capital. The total loan amount is up to $5 million. The lending criteria is relaxed so the competition is tough, make sure you have a stable financial standing so you can qualify for the loan.
All you have to do is fill an easy application and submit the required documents. For instant funds, this is not the most convenient funding option. SBA takes its time to match you up with the right lender, so apply for an SBA loan a couple of months before.
Now that you know where to go when in a financial emergency along with the terms and costs of the potential retail business loan options. Let us rewind the ways you can use a retail business:
- Purchase the equipment of your choice.
- Stock up on the inventory to last the season.
- Through extra cash flow, you can increase the working capital.
- Spend the funds on advertising and marketing of your retail store.
- Use the funds to purchase the real estate for business expansion.
As you can see that multiple funding options are available for retail businesses. So head over to the official site of Merchant Advisors, get the retail business loans and apply away. If you need more tips and tricks to flare up your retail store, follow us on Facebook (@Onlinecheck) and Twitter (@Onlinecheck). If you have any question, feel free to call us on our toll-free number at (833) 827-4412, our loyal and keen financial advisor will answer your every question and guide you throughout the way.