Small Business Loans for Retail Stores
Shield Funding has been securing small business loans for retail store owners for more than a decade. If you are looking to improve or expand your retail location we offer competitive rates and flexible terms for all types of borrowers. If you have bad credit or do not qualify for traditional financing we are your trusted loan resource.
BUSINESS LOANS FOR RETAIL
|Estimated Business Loan Term||2 to 18+ Months|
|Rates||12% to 45%*|
|Time in Business Required||2 Months|
|Min Credit Score Require||500|
|Min Monthly Deposits Required||5|
|Min Monthly Revenues||$8,000|
|Min Business Loan Amount||$5,000|
|Max Business Loan Amount||$1,000,000|
|Max Number of Negative Days||3 Within a Month|
|*rates depend on funding duration|
Small Business Loans for Retail Businesses
Retail stores are an important part of the small business economy. And we want to support them. So Shield Funding has been offering small business loans to retail store owners for a decade. We work with retailers to get the best terms on their loans and get money to their bank accounts as quickly as possible.
What Do I Need to Qualify?
Below is a list of the requirements needed to get approved for funding with our most basic program. Although in some cases there are many additional factors that may be considered, meeting these three requirements gives you a very high chance of having your application approved.
- At Least 2 Months in Business
- 500 Min. Credit Score
- $8,000 Min. Monthly Revenue
How Do I Apply?
Applying has never been easier. You can either call our toll free number 24 hours 7 days a week at (888) 882-6117
Submit your online application by clicking apply below and entering a few basic details about your business.
Retail stores can be very profitable, especially selling products that have high profit margins. But there are many costs to be paid beforehand. Whether that’s stocking your store with in-demand product, generating buzz through advertising, or weathering a seasonal downturn, it can be expensive.
Here are a few ways Shield Funding can help you get business funding:
These loans can be used for anything you need to run your business, from a big investment in product to making weekly payroll. With loans up to $1,000,000, you can use one of our business loans to significantly grow your business. And terms between 2 and 36 months mean you have a lot of flexibility in repayment.
You’ll also find better rates than you would at most banks—our business loans start at 5%. All you need to qualify is a credit score of 500, two months in business, and at least $8,000 in monthly revenue. If you meet those standards, you can get a business loan to help run or grow your retail store.
Most banks offer secured loans, which means you need to put up collateral when you apply. We know that putting your livelihood on the line just to get a business loan isn’t pleasant, so we offer unsecured loans.
As long as you met the minimum requirements above, you can get a loan without collateral.
We know that some retail store owners have made mistakes. And that shouldn’t disqualify you from getting a business loan. That’s why we only require a credit score of 500 for our business loans.
We won’t gouge you on interest, either—our bad credit business loans start at 12% interest, depending on your credit score and the terms of the loan. If you have two months of business under your belt and make at least $8,000 every month, you can qualify.
Just like our regular small business loans, these can be used for any purpose in growing or running your business.
Small business loans can be used for anything related to your business. That includes things like down payments on new locations, rent, and big investments in product. Working capital loans are focused more on day-to-day expenses.
That means you can pay your employees, refill your shelves, take advantage of marketing and advertising opportunities, and so on. These are the costs that can derail your retail business if you’re not careful. But with enough working capital, you can continue to run your business smoothly.
We offer up to $1,000,000 in working capital for retail store owners who’ve been in business for two months or more, generate $10,000 in monthly revenue, and have a credit score of 650 or better. And with interest rates as low as 9%, you won’t break the bank doing it.
So how might you use these loans? Here are some ways retail store owners have used their funds in the past:
Keeping Product in Stock
Running out of stock is a serious problem for retail stores. People visit your store to buy things—and if you don’t have things on the shelves for them to buy, you’re not going to make any money.
The cost of keeping product in stock depends very much on what you sell. High-end sports equipment requires a bigger investment than greeting cards. But no matter what you sell, you’ll need to shell out cash to make sure you have stock.
If you’re expanding or opening a new location, that could be a big investment. You’ll need tens or hundreds of thousands of dollars of product that you can start selling immediately. And unless you have that kind of cash on hand, you’ll want to take a loan to help you make the investment.
When you’re expanding you may also need displays and signage for your product, which can add a significant amount to your bill. This also applies if you decide to branch out and offer new products in your existing retail location.
Maintaining and Updating Technology
There’s a lot of technology that goes into running a retail store. Point-of-sale systems, workstations, inventory management software, HR tools, payroll subscriptions, and many other costs add up quickly.
And if you’re growing your business by adding more employees, the cost of many of those things will rise. A business loan can help defray the cost of growth until you start increasing your revenue.
You might not even be making a big expansion. What if you just want an extra point-of-sale system? A single cash register can cost you $1,000. Do you have the cash on hand to pay for it?
Even something simple like Square for retail is $60 per month plus the cost of an iPad. An iPad-based point-of-sale system can cost $1,400. Whether you’re outfitting a new store or just adding one more cashier station at your location, that’s a lot of money.
And no technology lasts forever. Registers and tablets break or become so dated that they’re nearly unusable. That creates a more negative customer experience, which is bad for business. Updating numerous pieces of technology is a good business decision—but can be hard to finance.
Website and Online Advertising
Getting customers into your retail store is one of the primary tasks you’ll have as an owner. And to do that, you’ll almost certainly need to have an online presence. At the very least you’ll want a website.
If you don’t have one, you’ll probably hire someone to build it. And unless you’re looking for something very small and simple, that can cost hundreds or thousands of dollars. Plus you’ll need to maintain it—websites become dated quickly, and if you change the focus of your store or start to stock something different, you’ll want to let people know.
Many retail stores now offer online sales, too. That opens up a huge potential market, but it can also be quite expensive. A mid-range Shopify site (a common ecommerce solution) can cost $80 per month, and if you want a bigger one you might be looking at $300 per month. That’s on top of having it designed and created.
Online advertising is another potential expense. You can get your retail store in front of thousands of people with online advertising, which can provide a huge boost to your revenue.
But to make that happen, you might spend thousands of dollars each month in advertising fees. They’ll pay off and you’ll earn a positive return on investment, but it takes a while to get an advertising campaign up and running. And an injection of cash, too.
Traditional Marketing and Advertising
Traditional marketing and advertising might not seem very flashy in comparison to an online ad campaign, but they still work. Getting your name out in local newspapers or magazines, advertising on local television, posting flyers, and sponsoring local events develop brand awareness and help drive people to your store.
Big sales do the same, but people need to know that a sale is going on. That might mean signage, mailed flyers, or other hard-copy advertising.
There are countless ways you can use traditional marketing and advertising to your advantage. But they all cost money. Like online advertising, they pay off. But because revenue is generated after the investment, you might want to consider a business loan to kickstart the process.
If you’re interested in taking out a business loan for any of these reasons—or any other business reason—give us a call! We’ll help you figure out the right type of loan and work with you to get the best terms possible.