Specializing In Small Business Loans For Retail Stores
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How Do Retail Store Business Loans Work?
For example, many retail stores are highly seasonal. Depending on the items you sell, demand might fall or drop significantly during the winter or summer. But since the busy season comes right after the slow season, stores must use this period to prepare for the surge in demand. This might include stocking up on inventory, hiring more sales associates, or ramping up your advertising.
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A Merchant Cash Advance is often an appropriate tool for these initiatives because retail stores tend to perform high debit and credit card sales volumes. The higher your monthly debit and credit card sales volume, the more you can borrow. And since payments are directly tied to sales, you’d make smaller payments during the slow season. Thus, you could make the investments mentioned above during the slow season to maximize the busy season’s performance. A Merchant Cash Advance is even cheaper when your payments are more spread out, so you’d save money by applying well before the busy season begins.
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On the other hand, if you’re looking to cover short-term expenses, a Business Line of Credit might be more cost-effective. This is arguably the most sensible product for managing inventory since the goal is to order items shortly before you plan to sell them. A Business Line of Credit allows you to place orders in response to shifts in demand and pay your vendors up front. This often ensures that orders are received promptly and for discount prices as well. You’ll pay less interest since you’ll soon have the revenue to pay off your full balance.
Who Qualifies For Retail Stores?
Approved businesses generally met the following criteria: