Are you opening the doors to your new retail store soon? Or maybe you’re already up and running and need capital to keep operations running smoothly, expand your business or avoid cash flow issues in the near or distant future. Either way, a retail business loan could be a viable option to access cash for your company.
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What is a Retail Business Loan?
A retail business loan is a debt product you can use to cover operating expenses for your store. You can also use the loan proceeds to pay for start-up costs, smooth out cash flow or expand your retail business.
What You Can Use Retail Business Loans For
Opening Up a New Store or Expanding with a New Branch
Whether you’re opening a new store or wanting to expand your current operation, you’ll likely need a sizable amount of capital. But instead of borrowing money from friends or relatives or emptying out your savings account, consider using a business loan to bring your vision to life.
Renovating Your Current Store
Is your storefront outdated or in need of repairs? Consider a retail business loan to get the job done and provide your customers with a comfortable shopping location. Some renovations can also curb costs by minimizing the need for costly repairs that may come up.
Hiring Additional Staff
It’s vital to have enough staff on hand to keep operations flowing smoothly and provide an exceptional customer experience. Covering payroll costs can be challenging, though, if you’re just starting out or low on cash. Fortunately, a retail business loan can assist you by providing the capital needed to invest in hiring additional staff.
Purchasing Stock or Inventory
You’ll need to keep tabs on inventory levels to ensure you have enough on hand to serve your customers. But you may not have enough cash on hand to purchase extra items for the upcoming busy season, which is where a retail business loan can assist.
Advertising and Marketing
Word of mouth is arguably the most effective form of marketing. Still, your retail business could also benefit from digital marketing. Or it may be wise to hire a marketing professional to give your marketing strategy or approach and materials a facelift.
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Types of Retail Business Loans You Can Get for Your Store
Business Line of Credit
A business line of credit operates like a credit card. If approved, you’ll get access to a set amount of cash to draw from on an as-needed basis. You’ll only pay interest on the amount you use, and as you make payments, the funds become available for use again until the draw period ends.
Inventory financing is a secured form of funding. It uses the inventory you purchase as collateral, which means you may qualify for a lower interest rate since the lender assumes a lower level of risk.
As the name suggests, this form of financing is also used to make equipment-related purchases. It’s also secured and uses the equipment you acquire as collateral. The application process is relatively simple, but the financing terms vary by the type of equipment purchased and the borrower’s credit profile.
Working Capital Loans
These loan products are flexible and can be used to cover a variety of operating expenses. However, you’ll have several months to repay what you borrow, and you may need a few years in business to qualify for funding.
Small Business Term Loans
Small business term loans are often more challenging to get approved for than working capital loans. However, you’ll generally get a longer repayment period.
How To Get a Retail Business Loan for Your Store
1. Find a Funding Partner
There’s no shortage of lenders offering business funding solutions. But how do you know where to look to get the best deal? Start by considering what Mulligan Funding, a BBB-accredited funding provider serving all 50 states, has to offer.
Mulligan Funding features fast approvals, rapid funding timelines and a seamless loan checkout option that allows you to navigate the application process easier. (*) Plus, you can access loans of up to $2,000,000 with repayment terms from 3 to 24 months.
Here’s an overview of funding options that may be available to you:
- Working Capital Loans and Business Term Loans: Loan amounts from $5,000 to $2 million are available to small businesses or retail business owners with annual revenue of at least $120,000. You’ll also need at least nine months in business to qualify, but perfect credit isn’t required.
2. Prepare the Required Documentation
Before applying, it’s vital that you gather the necessary documentation to avoid any delays in the review process. For example, some lenders request your business formation documents, EIN, a copy of your most recent personal and business tax returns and recent business bank statements. Keep in mind that you may need to provide more or less information and documentation than what’s listed here, so it’s best to inquire before applying to be prepared.
3. Submit the Application
You can use Mulligan Funding’s online checkout feature to complete and submit your application. Then, if you’re a good fit for business funding, you’ll be able to review the proposed loan terms, including the monthly payment amount, interest rates and any applicable fees, and sign the loan documents directly on the online dashboard.
4. Receive the Funds in Your Account
Some working capital loans and business term loans are funded within one business day of being approved. (*)
When you’re ready to move forward with securing the funds needed to help your retail business flourish, request a free quote from Mulligan Funding today.