9 Reasons to Get Working Capital Financing for Your Retail Business

9 Reasons to Get Working Capital Financing for Your Retail Business

Considering a small business loan for your retail store? You might want to take a look at working capital financing instead. Working capital loans are approved quickly, place few limitations on the retail businesses who take them out, and offer a significantly larger amount of control to the business owner. This kind of financing is great for the retail business that needs to get out of a tight spot or take advantage of an urgent opportunity. Working capital financing allows you to…

1. Seize Opportunities

Did your retail business just hit a sales boom so that you need to hire more employees, fast? Or do you have a time-sensitive advertising campaign for which you urgently need cash? Whatever the case may be, working capital financing can help you fill in the temporary cash flow gap so that you do not miss important opportunities for the long-term success of your business, now.

2. Cover Losses

Unexpected events are not uncommon in the retail industry. If you have recently suffered the loss of product inventory or a customer service associate, working capital financing can help you cover losses so that your business runs seamlessly.

3. Survive a Seasonal Dip

Every retail business has its ups and downs. Working capital financing can help get you through the occasional, seasonal slump.

4. Get Fast Approval

Have you ever tried to get approved for a small business loan? The approval process is extensive, takes time, and can be extremely aggravating for a retail business owner who needs cash fast. If you opt for working capital financing instead, you are likely to receive the money you need within a week of your accepted application.

5. Experience Few Limitations

With a small business loan, you may be required to submit a purpose statement for the money you are taking out. Not so with working capital financing, which has far fewer restrictions. There is only one limitation, which is:

  • The loan must be used for short-term/daily operations expenses only, such as payroll, inventory, or marketing.

Otherwise, it is up to the retail store owner to decide what is best for his or her business!

6. Maintain Control

Small business loans come with investors, which mean less control for you. Get working capital financing instead, which allows you to maintain control of your retail business!

7. Put Down Zero Collateral

That is, if you’d like. Working capital loans can come secured or unsecured depending on your retail business’s financial standing and credit history as well as your preferences.

8. Pay It Back Fast

Because working capital loans are intended to fill-in short-term cash flow gaps, they do not take years to repay at high interest rates.

9. Protect Your Credit

Repeatedly taking out small business loans can hurt your credit score. Working capital financing is better for credit while providing much-needed cash flow.

Interested in maintaining cash flow and control with your next short-term loan? Consider working capital financing. If you think a working capital loan might be the right choice for your retail business, give us a call at Cornerstone Credit Services. We have been providing these loans to our fellow Alaska business owners for years and we would love to connect you with a designated customer service representative to discuss your options.