Are you planning on starting a retail business anytime soon? Starting a new retail business is exciting and potentially lucrative. However, even a mom and pop store can need thousands of dollars in order to kick start operations. Aspiring business owners usually apply for Tulsa business loans to fund their small business venture.
According to Forbes, entrepreneurs need to spend at least $100,000 on store renovations, as well as the first round of inventory for your store. With that said, starting a retail business is pricey. The good news is that it’s very much doable because there are numerous small business loans you can qualify for.
1. Business Line of Credit
A business line of credit (LOC) is one of the most flexible financing options for small business owners. When approved for a LOC, lenders give you a predetermined credit limit where you can draw funds from whenever you need them. This means that the funds can sit in your bank account for months, untouched. One of the benefits of a business line of credit is that you only have to repay for the amount you’ve withdrawn, plus the interest.
2. SBA 7(a) Loans
Among the number of loans offered by the Small Business Administration (SBA), 7(a) loans are the most popular. This type of SBA loan offers longer repayment terms, lower interest rates, and a higher borrowing limit. Business owners can use the funds for almost anything, including daily business expenses, payment for equipment, purchasing inventory, and more – as long as it’s for the benefit of your business.
3. SBA 504/CDC Loans
The SBA 504/CDC loan is another loan created by the SBA and is the second most popular SBA loan. Unlike 7(a) loans, you can only use a 504 loan for investing in fixed assets, such as real estate. The interest rates go as low as 4%, and the repayment terms can stretch up to 25 years with a borrowing limit of up to $5 million.
4. Short-Term Loans
Short-term loans are a great option if you need to cover emergency expenses. However, a short-term loan can be more expensive than long-term loans, but it can greatly help small business owners if you need immediate funding. To expedite the funding process, you can apply for short-term loans from online lenders. The repayment terms set by online lenders are usually less than a year but you can get the funds almost instantly (less than 24 hours).
5. Equipment Financing
Retail businesses often need furniture and fixtures, kitchen equipment, computers, tablets, POS systems, and delivery vans, among other items. Equipment financing allows small business owners to purchase or lease the type of equipment you need for your business. Equipment loans are usually self-secured, meaning that the equipment you’re looking to purchase serves as collateral for the loan.
Tulsa Business Loans – Small Business Loans for You
If you want to apply for Tulsa business loans, SMB Compass’s elite team of professionals can help you secure the very best kind of loan that is available for you. After years of experience, our company has provided funding for more than 1,000 businesses in the United States.