Retail Business Loan

Retail Business Loan

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Retail businesses have specific needs that can put pressure on their cash flow and impact growth opportunities. This could often lead to the growth of the company being hampered or the entrepreneur not being able to expand according to his desires. At this point, there are two options, either put the profits back into the company or take on some debt to increase growth.

Finding the right loan is crucial when it comes to starting your first business or expanding into new markets. There are business loans for just about everything, from buying your retail space to solving short-term cash flow issues. If your business needs it, chances are there’s a loan available. This article might help you narrow down your options so you can keep things running smoothly.

Why do you need a retail business loan?

Sometimes a business is highly reliant on credit business transactions, or overhead costs have increased or simply some capital pump is required for the expansion of the business. Earlier, the entire process for taking on a loan would be cumbersome, however, with the advancement of Fintech and ease of technology, the entire process can be completed within a few minutes. This makes it easier for small retail businesses to take on loans.

You could need a retail business loan for the following reasons

– Purchase New Inventory

  1. Add new retail items to increase revenue
  2. Stock up for prime selling sessions

– Expand the Business

  1. Acquire real estate for new business
  2. Purchase new fixed assets to support growth

– Hire New Employees

  1. Expand short term staff for seasonal demands
  2. Add full-time staff for new location

– Buy Fixtures and Equipment

  1. Enhance your look and store merchandising
  2. Purchase equipment to manage it all

– Upgrade your store and site

  1. Renovate your physical store
  2. Enhance your market on e-commerce sites

– Improve Cash Flow

  1. Consolidate debt or pay business taxes
  2. Maintain cash reserves for season

– Reduce Credit Transaction Reliance

  1. Forward payment invoices to the lender
  2. Have more liquidity during times of heavy business

How Retail Business Loans have been made easy

MSME and SME contribute a major chunk of the GDP of our country. SME growth has been unprecedented in the last few years. Due to this growth, the government has made the lending sector for the MSME and SME easy so as to encourage more businesses to take on a loan, indirectly helping the SME sector. Unlike the limited options, slow pace and low approval rates of traditional lenders, NBFCs delivers a powerful suite of retail business loans that can help your business operate more efficiently and effectively. They understand the challenges small retail businesses face, so they make it easy to get funded through a simple application process and high loan approval rates.

  1. Collateral free retail business loans

Now business owners do not have to worry about some asset to keep as collateral. This leads to no collateral requirements and easy loan approval process.

  1. Fast and Easy Retail Loan Application Process

The government has lately introduced the MSME loan in 59 minutes. Earlier when the application would take hours, this can just happen in 59 minutes, encouraging entrepreneurs to take loans.

  1. Technology in the field of finance

With the introduction of Fintech and the mass development of technology, most loan approvals happen behind the screen, reducing human time and error. Loan approvals become faster and easier through this method.

  1. Personalized Retail Loan Experience

This leads to lending solutions and payment options tailored to the specific needs of the borrower. Different types of loans are available for different requirements of business owners.

How to determine the Best Retail Business Loans

Retailers typically have thin margins and seasonal businesses. Typically, when it comes time to fund inventory to prepare for your busy season or to replenish your levels before they run out, you haven’t yet received cash from your customers. This is the biggest cash flow need for retailers and it’s the first thing to take into consideration when determining the best retail business loans.

When deciding on the best retail business loans the points to be considered are:

    • Speed of funding
    • Loan amount
    • Minimum qualification requirements
    • Repayment terms
    • Costs
    • Collateral needed
    • Inventory level requirements

The products you sell and the time of year will determine which retail business loan is right for you. For example, if you’re just looking to fund small inventory amounts or prepare for the unexpected, then a business line of credit is the right choice. However, if you need commercial real estate for a new location, then a short term business loan is the right fit.

Different types of Retail Business Loans in brief

  1. Short Term Loans

Retailers that need to fund quick working capital purchases, like inventory, and know exactly how much they need should opt for a short term loan.

  1. Business Line of Credit

Retailers wanting a line of credit they can use over and over again for recurring growth capital or deal with seasonality.

  1. Equipment Loans

Retailers that only need funds to buy a large piece of equipment required for store operations.

  1. Business Credit Cards

All retailers could benefit from using a business credit card to cover monthly operating expenses and earn rewards for purchases.

  1. Merchant Cash Advance

Retailers that collect a lot of daily credit or debit card transactions and have exhausted other options.

  1. Point of Sale Financing – POS Financing

Retailers can use this option to gain new customers and receive a cash advance on their sales.

FlexiLoans provides retail business loans for most of the types of loans mentioned above at great interest rate and even better customer service. If you feel your business has been at a standpoint, there is the capacity to expand or simply you want to hand over your credits to a third party, click here to know about the loans offered at FlexiLoans. With the government being so supportive for the growth of MSME and SME it is the right time to take on this opportunity and scale your business.