If you’re a retailer and you’re seeking ways to have your store financed, it can be a real challenge finding the right type of loan which won’t leave you struggling to make payments and stay solvent in the future. There are many different kinds of loans that are available to retail store owners, and the one which may be most advantageous to you will depend on factors such as your personal profile, your business profile, and what you intend to use the money for. Here’s how you can figure out which type of loan would be most beneficial for your retail business.
When you need funding to purchase major pieces of equipment for your store, your best bet would be to apply for equipment financing. This kind of funding will generally involve terms ranging from three to five years so that your payments are manageable. It’s also easier to qualify for than unsecured lending would be. If your equipment financing is structured like a lease, you may be eligible for some significant tax advantages as well.
Merchant Cash Advances
If you don’t qualify for a traditional loan, your retail business might still take advantage of a merchant cash advance, which is much easier to qualify for. In this form of funding, you would sell some portion of your future credit card sales to an alternative lender, in exchange for an upfront sum of cash. This could be used to meet operating expenses, restock inventory, or even for payroll purposes. The point is, you would have cash in hand so as to maintain cash flow, and you would only be obliged to pay a percentage of your credit card sales each day, rather than a fixed amount each month.
One of the biggest challenges faced by retail store owners is maintaining a constant supply of needed inventory. One of the best ways to handle this is to secure a revolving line of credit, which will allow you to draw the amount of money you need at the time it’s needed. This will permit you to save a ton of money on finance and interest charges, rather than taking out a huge loan and having to pay down on it every month.
Looking for the Best Loan for Your Business?
We may be able to help you secure the optimal loan that will help your business run smoothly, and even grow over time. Contact us at Triport, so we can discuss some options which may be available to you.