Retail Store Business Loans
Retail Store Business Loans Can Help Your Business
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How a Retail Store Business Loan Can Help Your Business
There are two main aspects of running a retail store: (1) You need to maintain inventory and (2) get through slow seasons.
If you own a retail store, you’ve definitely experienced cash flow issues. Retailed-oriented businesses are highly seasonal. Off-seasons are a reality. For a majority of retail stores, a big chunk of sales come from certain times of the year, such as the holiday season, Black Friday, etc. As with other seasonal businesses, you can never be sure how long the seasonal slump will last.
A smart business owner will stock up on inventory and working capital before the busy season begins, but won’t necessarily see a return on their investment for a while. Retail store business loans provide working capital for your supply needs, as well as added flexibility to keep up with the demands of running your business.
As a retail business owner, you should be able to promise to provide nothing but superior inventory and high-quality customer service to your clients. You want them to continue to patronize your business, but it’s difficult to do if you don’t invest in the quality of your inventory, marketing efforts, and business location.
SMB Compass understands the challenges of running a retail store. We have financial advisors waiting to answer your questions and find the right loan product to fit your needs.
Best Ways to Use a Retail Business Loan
When you are equipped with the right financing partner, your business will be set up for success. A retail store business loan from SMB Compass will help you finance your business’ needs.
With a retail store business loan, you’ll be able to:
Purchase Equipment
Depending on the type of retail store you run, your business might need new computers, printers, laptops, bookkeeping software, or maybe even industrial-grade equipment. A retail store business loan covers the upfront costs of purchasing equipment and eases the burden of large purchases by enabling you to spread payments out over time.
Increase Working Capital
Working capital refers to the cash available on hand for your business. When your business is facing a dry spell, or an off-season, and you need extra cash to run daily business operations, a retail store business loan can help with your working capital.
Invest in Marketing & Advertising
Almost every business from every industry has a website. But having a website isn’t always enough. In order to generate desirable results, you need to create a user-friendly, search engine-optimized, fully functional website. A retail business loan will help you cover the costs of hiring the best website developer for your business.
Purchase Real Estate
Are you ready to expand your business from an online store to a physical location? Or maybe you want to branch out? A retail store business loan will help you finance your business expansion, no matter how big or how small.
Purchase Inventory
Retail stores usually buy inventory in bulk, even before they generate revenue. You can use a retail store business loan for your initial inventory purchases or to keep your shelves in stock during busy seasons.
How Long Does Retail Store Financing Take?
SMB Compass offers quick approval for your retail store business loan. With the goal of making funding available for all small businesses, our company has provided more than $160,000,000 to small businesses all over the country. We want to make the application and financing process as smooth as it can possibly be.
We offer fast and flexible funding. In four easy steps, your business will get the funding you need:
Apply for a retail business loan online
Our simple online application lets you fill out and submit your request for funding. The process is pretty simple, but if you need help along the way, you can contact us via phone, chat, or email.
A friendly 5 to 10-minute introduction
The next step is an introductory conversation with one of our account executives. We will go over your needs and begin to discuss the different options available.
Documentation and underwriting
Once you make a decision and reach an agreement, we’ll provide closing documents to review the terms. We’ll also answer any final questions you might have.
Approval and funding in less than 24 hours
When your loan has been approved, we immediately send the funds to your business bank account within 24 hours.
Best Types of Loan Programs for Retail Store Business Loans
SMB Compass offers several financing products to consider for your retail store business. We have experts that can walk you through the application process, and help you determine which type of business loan is best for your retail store needs.
Here are the most common types of financing programs for retail store businesses:
SBA 7(a) Loans
Compared to other types of loans, SBA loans offer flexible repayment terms and interest rates. Among other types of SBA loans, the 7(a) loan is the most popular, mostly because there are few restrictions on uses for the funds.
The Small Business Administration guarantees up to 85% of every SBA loan to the lender, which encourages lenders to finance small businesses and means that it is easier for small businesses to qualify for these types of loans compared to traditional loan options. Lenders are more willing to approve your loan since they’re repaid by the SBA in case you aren’t able to repay your loan.
Equipment Financing
Equipment financing provides your business with funding to purchase any kind of machinery or equipment you need to keep your business going. Whether it’s a new laptop, a van, oven, or maybe water-refilling machines, equipment financing will get you through. With equipment financing, the equipment you buy serves as the collateral that secures your loan. There are typically two options for equipment financing: equipment loans and equipment leasing.
Merchant Cash Advance
A merchant cash advance is a good option if your retail business needs working capital ASAP, or if you don’t have good credit. Technically, a merchant cash advance is not a loan; as the name suggests, it’s more of a cash advance.
With a merchant cash advance, lenders provide you with the funds you need in exchange for a percentage of your daily credit/debit card transactions. While a merchant cash advance isn’t a loan, it still offers similar benefits. It also has a higher approval rate than other traditional loan programs.
Best Types of Loan Programs for Hotel Business Loans
SMB Compass offers different types of financing options for your hotel business needs. We have financial experts on hand, ready to help answer any question to make sure you find a loan product that fits your needs.
Here are the most common types of financing products for hotels:
SBA 7(a) Loans
The Small Business Administration (SBA) gives incentive for lenders to offer loans to small businesses by guaranteeing a percentage of the funds immediately. This makes SBA loans ideal for small businesses.
The SBA 7(a) loan is also ideal for hotel financing because it has low-interest rates, long repayment terms (10 to 25 years), and you can borrow up to $5,000,000. The SBA 7(a) loan is flexible, and you can use it to fund any hotel financing need, such as purchasing commercial real estate, construction, renovations, equipment purchasing, additional working capital, and more.
Asset-Based Loans
If your business doesn’t have enough revenue or cash flow to qualify for other forms of business financing, you might want to look into asset-based loans. Asset-based loans are ideal for businesses with a high value in assets or on their balance sheets.
Businesses can use their assets as collateral to secure financing. Most lenders consider the following as collateral for an asset-based loan:
- Accounts Receivable
- Inventory
- Equipment
- Intellectual Property
- Real Estate
- Marketable Securities
Merchant Cash Advance
A merchant cash advance is a good option if your hotel business needs working capital ASAP, or if you don’t have good credit. Technically, a merchant cash advance is not a loan; as the name suggests, it’s more of a cash advance.
With a merchant cash advance, lenders provide you with the funds you need in exchange for a percentage of your daily credit/debit card transactions. While a merchant cash advance isn’t a loan, it still offers similar benefits. It also has a higher approval rate than other traditional loan programs.
Equipment Financing
Buying new equipment for your hotel is expensive. Equipment financing provides you with the money you need to purchase new beds, washers and dryers, vehicles, or any other equipment your hotel needs. Typically there are two equipment financing options: equipment leasing and equipment loans.