Retail Finance is for single store or multi-store retail chains that need funding for expansion or working capital. Funding proceeds can be used to open new stores, purchase equipment or other assets as well as general working capital. This type of financing can be used for newer retail businesses as well as mature ones.
The most common types of retail funding are:
- Small Business Loans
- Cash Flow Loans
- Merchant Funding
- Equipment Finance
The type of funding that is available to your retail business will depend on length of time in business and history of profits. Retail businesses that have been around for over 3 years with a solid history of profits can benefit from small business loans and cash flow loans. Newer businesses will need to rely on merchant funding or similar short-term higher interest rate programs.
While retail finance programs can be used for franchise purchase and expansion, the franchisee needs to ensure that the franchisor will not encumber the assets of the business or is at least willing to take a second position on the assets. Franchisors typically take a security interest in the franchisee in order to protect the royalty payments due from the franchisee.
While there are several forms of Retail Finance available, each has its positives and negatives. In many cases more than one form of financing can be used to generate capital. Choosing the right working capital facility with the right lender can make all the difference.
Call us now at 855-424-2958 to discuss your retail finance options! Or fax us at (855) 450-0885.
Customized Financing Options
Asset Based Lending
Revolving lines of credit up to $20,000,000
Accounts Receivable Factoring
No minimums, up to $20,000,000
Secondary lines of credit for ABL or Factoring
Equipment & inventory facilities
Great for staffing & temp agencies