As a retail small business owner, you know that there are plenty of components that are running behind the successful operations of your retail business. From expenses such as bills, rent, inventory and payrolls, you can’t risk being low on cash flow. In case you can’t come up with the money for these expenses, you will definitely have the risk of shutting down your retail store. And that is where retail business financing comes in.
If being a retail business owner you are low on cash, you need to know that there are so many small business loans for retail businesses that can help you cover all financial emergencies related to your retail business.
- Small Business Loans
Small business loans are one of the best business financing option that you can consider. Being a retail small business owner you can apply for small business loans through a bank or alternative lender. In case you need quick funding for your retail business, alternative lending is the best platform for you to apply for this type of funding. Alternative lenders have quick underwriting process as compared to traditional lending platforms.
With small business loas, you’ll be given an amount that you will need to repay in a set period of time. When thinking about a retail business loan, your lender will need to make sure that you will be able to pay back the loan amount within the set time frame, therefore you don’t overextend your finances. And in case you are unable to make your loan payments on time, you’ll risk a larger amount of debt as well as interest payments.
- Merchant Cash Advances
In this digitally advanced time, almost every business is accepting credit cards as a way of payment. If you have in placed a card payment system, then you are a strong candidate for a merchant cash advance, which are also known as business cash advance. In case you are approved for a cash advance program, you will get an amount that is directly attached with your business future credit card sales.
For instance, if your retail business earns more credit card transactions all throughout the holiday, you’ll remit more at that time than you would throughout the slower times. All in all, merchant cash advance is the best business funding program, especially for retail small businesses. If unluckily you don’t have consistent credit card sales, this might not be the funding option to consider for small retail businesses.
- Credit Cards
There are many retail business owners that open at least one credit card account in order to pay for expenses even if they don’t have cash available in the moment. If you are looking to finance your retail business, consider applying for a business credit card. When looking to open a credit card account, you need to look for cards that have some special rewards and will benefit your retail business in the future. Apart from the rewards, you need to make certain that the card doesn’t come with hidden charges that you won’t be able to manage to pay for. It is also advised to use your card sensibly. Don’t overspend. If you get heavy debt, this could harm your retail small business in the end.
- Business Lines of Credit
In business line of credit program, you’ll be provided a limit that you can’t go above. When borrowing from your credit line, your credit limit will decrease unless you pay back the borrowed amount. However there are some lenders that might also offer non-revolving credit lines that actually have a limit, but once the limit has been met, you can’t use it again. And for that, you will be asked to apply for another line.
Before you go for a business line of credit to fund your small retail business, you need to consider that in case you are dealing with bad credit issues, the lender might be requested you to place collateral in order to secure credit lines.
- Inventory Loans
To buy items to sell at your retail store, you could benefit from getting an inventory loan. You may additionally use an inventory loan to buy items that are required to run your small retail business. This type of funding program will come with set terms and only made for purchasing inventory for business. In case you’ve had trouble being able to afford inventory, you might benefit from applying for this sort of financing.
- SBA Loans
The Small Business Administration (SBA) provides several types of funding options to small business owners. Here are the SBA loan programs for small businesses;
- 7(a) Loan Program
- 504/CDC Loan Program
- Express Loan Program
- Microloan Program
- Disaster Loan Program
- Export Loan Program
- CAPLines Program
SBA has its own set of lending criteria that you need to meet to qualify for an SBA loan. They have stringent lending criteria relating to your financial history, credit score, and collateral requirements. If you think you are unable to meet the SBA requirements for loan, consider the above-mentioned sources.