Currently the retail industry is poised to expand and account for more than a fifth of the US total economic growth. According to Bureau of Economic Analysis, the US retail industry generated $1.14 trillion last year, which is 5.9% of the US GDP. There are almost 3.7 million retail businesses in the US, employing 42 million people. The retail sales are edged up about 0.1% in September this year after a similar improvement a month before.
According to a survey performed by Reuters, the retail sales was up 0.6% last month. Whether it is shortage in inventory or hiring more staff in the busy season based on seasonal demands, the retail businesses are seeking fluctuations. These seasonal fluctuations require immediate funding to cover seasonality problems.
Types of the Retail Businesses in US
- Department Store
- Convenience Store
- Discount Store
- Specialty Store
- Online Store
Retail Business Loans
Whether you are selling furniture, jewelry, automotive parts, or clothes, the cash flow can be an issue for you when you are trying to keep up with the new stock, marketing expenses and upgrading your retail store. Purchasing inventory for the busy season often causes cash flow problems especially for retail businesses because predicting the potential demand of your customers can be difficult. Retail business loans are meant to help you by providing a lump sum amount to purchase inventory without upsetting your cash flow as well as help you to get through financially difficult times.
How Retail Business Loans Can Work For You
Here are some of the best usage of business loan that help you in the productivity and growth of your retail business;
Managing Seasonality Shortfalls
Every business has experienced shortfalls throughout the year and the cash flow fluctuations are the more intense problems for retail businesses. These cash flow problems can cause seasonality shortfalls and retail business loans can help you to manage the seasonal operating cycles.
Other than the inventory and shortfalls, payrolls and hiring new workers for the busy season is also important for any retail business. Hiring new workers will cost you, but with retail business loans you can easily manage your new employees’ wages.
Holiday season is upon you and you are depressed because you have nothing in your hands to stock up your inventory for the holiday season. Retail business loans will help you to stock up your inventory before the season arrive.
Improve Cash Flow
Managing cash flow is an essential part of running a retail business. If you run out cash and are unable to pay your vendors and suppliers, you will become insolvent. Therefore it is important to minimize the outgoing cash and increase the level of incoming cash into your retail business. A retail business loan will help you to manage all other expenses without disturbing the cash flow stream.
You want to purchase a Point Of Sale (POS) system for your retail store, but cash shortage is stopping you? Retail business loan can also help you to finance the acquisition of new POS for your retail store. There are many latest models of POS system that can help you to efficiently track inventory and notify you when to stock up a specific item.
The electronics shop next to your retail store has just closed down for sale and you want to add that space into your retail store and want to showcase more items on that space where you turn to? A retail business loan can help you to not only purchase that space but you can also buy inventory to showcase it into new space.
To discuss more financing options for your retail business, please don’t hesitate to give us a call on our toll free number (833) 827-4412. Alternatively, you can get a free quote online by filling our online form, if you’re ready to apply.