How can business loan benefit a retail store owner?
As you probably know, running a retail store is an expensive business. You need to have a good location, an attractive and inviting storefront to make customers enter your store, excellent, updated inventory to appeal to customers, great customer service and of course marketing campaigns to help you in a very competitive environment. You will also need plenty of inventory in peak seasons like the holiday season, otherwise you will lose both face and profits.
With so many demands on your business there is also a high demand on your cash flow either if we are talking of starting such a venture, financing or expanding it.
Let’s consider the happy event that your retail business is going very well and you want to expand by opening a new store. How can you finance location, storefront, inventory and marketing all a must for the success of the new retail store?
You have several options with PROs and CONs for each of them:
Using your own money
You can use the retained earnings from the existing store, your own money, to finance the new one. There are certain benefits to this choice, decision is yours and yours alone, no bureaucracy, long approval process and no interest to pay. But, don’t think there are no costs associated with this decision. If you took into consideration all implications you might deprive your current business of the so much needed cash or as an economist would say you kill your cash cow for a question mark.
Using money from friends or family
Next in line when you need cash and you have already decided that you cannot use your own are family and friends. The advantages are almost the same as when using your own funds, but let’s remember the disadvantages: unclear lending conditions: the relative or friend might come up suddenly and ask you to repay everything because of an emergency. Add here the complications you can get into if something goes wrong.
Using bank loans including U.S. Small Business Administration (SBA)
Banks offer loans for $25,000 and more at a convenient cost to enter a new venture, but you need enough plenty of collateral to secure the loan, an excellent credit history and a strong business case that has to stand even under severe scrutiny. SBA loans are a little easier to obtain, also via a bank, but you still need enough collateral in order to qualify. The caveat here being that retail owners who don’t have enough assets will never get a bank loan.
For business as usual you can have a credit line, that function as you know as a credit card, meaning you have a certain amount you can tap into every time you need and you pay interest only to the used amounts.
Of course, Plousio can help with SBA Loans.
Using alternative loans
Because banks have such difficult qualification conditions, even now, a few of years after the Great Depression, alternative loans might be the choice for you. You may get such a business loan even after you were rejected by a bank but these are short term loans (one year or less) offered at higher interest that you will have to repay by having a fixed amount payed back frequently.
How Does Plousio Work?
Plousio makes it easy to find a great small business loan with the most competitive rates. Simply answer a few questions, select a lender and fill out our account creation form and you’ll start receiving new offers right away! With 3 easy steps, you can get your death care business funded!
Step #1: Apply online or call 1-508-848-0534
Step #2: Receive the most competitive offers
Step #3: Get funded within 24 ~ 48 hours
Contact a Plousio Funding Adviser Today
If you need help with determining your funding eligibility or preparing application and documents, please contact our funding adviser today. Plousio funding advisers pride themselves in transparency and non-aggressive communication practices. They are not here to make sales quotas, instead, focus on helping you every step along the way of your funding process. In the unlikely event, you do not think that Plousio is the right solution for you, just let us know – No problem! We promise we wont be calling you 5 times a day like some other companies do.