Business Loans for Jewelers
Jewelry Store Business Loans
It’s a great time to be a jeweler. The global jewelry industry has been growing by 5–6% per year and isn’t likely to slow down soon.
Whether you’ve been in business for a couple months or you’re a longtime professional jeweler looking to expand, getting business funding will be a big help in ensuring your success.
Fortunately, getting that business funding is easy with alternative lenders like Shield Funding. We’ve been securing business loans for jewelry business owners for more than a decade, and our experience helps us get jewelers the best loans for their needs.
What Do I Need to Qualify?
Below is a list of the requirements to get approved for business funding with our most basic program. There may be additional factors that are considered, meeting these three requirements though gives you a very high chance of having your application approved.
How Do I Apply?
Applying has never been easier. You can either call our toll free number 24 hours 7 days a week at
Submit your online application by clicking apply below and entering a few basic details about your business.
Jewelry Business Funding Options
A standard short term business loan will be a big help in expanding your jewelry business. You can get up to $1,000,000 from Shield Funding to help grow or expand your business.
What can you use that money for? Anything you want. You can use it to buy a new location or get a headstart on your rent payments. Buy expensive equipment to start making custom set or engraved jewelry. Hire more help. Install a better security system.
A term small business loan can be used for almost anything related to your business. And because you have the flexibility to get loans for anywhere from three to 36 months, you have a lot of options.
You’ll pay between 5–45% interest, depending on your credit and business financials. Because many jewelers are women, it’s also worth noting that we offer small business loan options specifically for women.
Just because you have bad credit doesn’t mean you can’t get a business loan to grow your jewelry business. As long as you have a credit score of 500 or above, we’ll work with you to find a loan that meets your needs.
Keep in mind that your terms and rates may be less flexible if you have bad credit. You’ll need to prove that you have at least $8,000 in monthly revenue and that you’ve been in business for two months or more. And you won’t get an interest rate below 12%.
But when you need cash to build your business, a bad credit small business loan will help. And if you have bad credit, there’s little chance that you’ll qualify for a loan from a traditional bank.
Do you want to buy a CAD station to design your own jewelry? Casting tools for creating your own custom designs? A laser cutter to offer something new?
You need cash for those things. Some jewelry equipment can be remarkably expensive; a large laser cutter can be $10,000 or more. Unless you have the cash on hand to pay full price, financing is necessary.
These business loans are specifically for equipment, so you might be able to get lower rates than you would with a standard term business loan. The equipment itself also serves as the collateral, so you don’t need to worry about putting up additional collateral to qualify.
There are a couple disadvantages of equipment loans, though. First, you may need to put down a down payment on your equipment. And that can be up to 20% of the cost. So your $10,000 laser cutter might still require a down payment of $2,000. Not an insubstantial amount.
The second disadvantage is that many equipment-specific loans require good credit. You may need a 650 or 700 credit rating to qualify.
If you don’t mind those conditions, though, equipment loans will help you buy the expensive equipment you need for your jewelry shop.
Term business loans are good for big purchases or getting a storefront set up, and equipment loans are specifically for equipment. But what do you use for your day-to-day expenses like paying for advertising opportunities? Or getting a broken jewelry engraver fixed?
When expenses come up quickly, it’s good to be prepared. And that’s what a business line of credit is for. And for businesses like jewelry-making that have high inventory turnover and lots of various base materials, that can be a lifesaver.
Remember that keeping your inventory cases full is mandatory. If you don’t have enough stock, your business is going to suffer. A business line of credit helps you avoid that.
Shield Funding offers lines of credit up to $250,000. So whatever problem or opportunity you run into, you’ll be ready to take advantage (or fix it). And because interest rates are between 5 and 10%, you don’t have to worry about accruing huge amounts of debt.
Like a business line of credit, a merchant cash advance is great for the day-to-day expenses of running a jewelry store. Maybe you need to buy a new display case to show off more of your wares. That’s $1,000 you weren’t planning on spending.
Or there’s a big sale on raw materials that you can use to make jewelry. You know that stocking up will save you money in the long run, but it could put a big dent in your bottom line for the month.
You might use it for an ad campaign during the busiest time of the year for jewelry stores.
Instead of scrounging the cash together, you can use your merchant cash advance.
The previous financing options on this list are repaid in the familiar way: you make payments on a regular schedule until the balance is paid off.
A merchant cash advance is different. Instead of making payments, a specified percentage of your credit card sales are held back to pay off the loan.
And like a business line of credit, you can get up to $250,000 from Shield Funding. Interest rates are higher, at 24–49%, but the added convenience of having your payments automatically taken out of your credit card transactions is often worth it.
Financing Tips For Your Jewelry Business
1. Your Store
Jewelers have an advantage over some other business owners—they can start small. You can’t open an automobile showroom in your house, but you can absolutely start creating jewelry from a spare room.
Many jewelers make jewelry in their homes and then sell their pieces online or at artisan markets. This is a great way to save money when you’re early in your career.
But eventually you’ll start to think about expanding. And that means finding storefront space. Depending on the type of jewelry store you want to open, the type of location can vary.
A traditional jewelry store, for example, usually has lots of counter space for displaying high-end jewelry in glass cases. A more artisanal store might be smaller and only include one or two cases and other types of displays. If you make custom jewelry to order, you may need even less space.
Jewelry stores have high sales per square foot, which is helpful in paying for your rent or mortgage on a storefront. But it can still be a big upfront investment
2. Jewelry-Making Equipment
Like your location, the equipment you need depends on largely on the type of jewelry you’re making or selling. For example, a simple home jewelry setup might include several sets of pliers, a crimper, a wirecutter, a chasing hammer, metal stamps, and base materials.
For a setup like this, you could probably get started for a few hundred dollars and expand a little bit at a time.
But if you’re interested in a more traditional jewelry store, you’ll need some serious equipment. Engraving and stonesetting machines for gem rings can cost tens of thousands of dollars. You’ll also need soldering materials, casting equipment, and polishing kits.
Precious metals, gems, and other materials for high-end traditional jewelry cost thousands of dollars—and if you’re looking to compete on things like engagement rings, you’ll have to stock a lot of them.
For this type of jewelry store, you’re looking at $100,000 or more. So opening a new storefront or expanding into this area will require funding.
No matter how you’re looking to grow your business, there’s a good chance that you’ll need to invest in at least some equipment. And that can cost tens of thousands of dollars.
Jewelry stores also have multiple types of displays. A very small operation might be fine with a peg board, but traditional-type jewelry store displays include trays, models, and all sorts of other options. That’s in addition to mirrors, very high-quality lighting, display racks, measuring equipment, and a variety of other accessories.
All of that can add significantly to the cost, too.
3. Stock and Inventory
If you’re expanding to a new location or adding a lot of retail space, you may need to make a big investment in inventory. Depending on how much you mark up your jewelry, you might expect to pay half of the sale price, so a $10,000 ring will cost you $5,000.
That adds up fast. Especially if you want to open a large store with a lot of inventory. Empty showcases and bare retail space will harm your store’s performance. So you’ll need to calculate the amount of inventory you need for the space.
Then again, if you’re only looking to increase the size of your handmade jewelry space, increasing your inventory is just a matter of spending more time creating new pieces.
Knowing exactly how you want to expand your business is key to estimating your inventory costs.
4. Operating Costs
Like inventory, you may have wildly varying operating costs. If you’re the only employee of your store, your operating costs will be pretty low. Even larger jewelry stores can get away with few employees.
The average jewelry seller makes around $30,000 a year. You can use that as a rough guide to how much you might pay your employees. That will change based on where you’re located, how much you expect of your employees, and other factors. But even two or three employees can get you close to the $100,000/year mark.
You’ll also need retail insurance, which is higher for jewelry stores than other stores. The average annual cost for retail insurance on a jewelry store is $1,160.
One unique operating expense you’ll need to consider in jewelry stores is security. The larger your store, the more you’ll want to spend on security. Plan on $300–500 per year for equipment, and at least $50 per month for service. Because you have so many high-value items, you may want to plan for more than that.
You’ll also want a very high-quality safe, which can cost upwards of $500.
And, of course, there are things like water and power, advertising, marketing, and other regular costs. All of this is dependent on the size of your store and how much you want to invest.
Have a Plan
As you can see, there are many expenses involved in expanding a jewelry business. And plenty of funding options to make sure you can handle those expenses. Your best bet is to come up with a solid funding plan before you start your expansion. Not sure where to start? Give us a call and we’ll help you figure out the best funding solution for your business!