Compare Lenders
Discover Popular Financial Services
Types of Retail Business Loans
Canada has a retail industry that is very diverse and vibrant. The retail business loan sector reflects this fact with its diversity. There are many different retail loans available, each with its specific purpose in the retail industry.
Retail Working Capital
Every retail store will have its own working capital needs. With retail working capital loans, you can finance your inventory, payroll, and other day-to-day operational expenses.
Working capital loans are a great way to help a retail store get through a slow season. They can help you finance your retail business any time of the year. They can be very helpful if youâre experiencing inconsistencies in your cash flow and just need financial help.
Merchant Cash Advances
While business term loans can be used for anything, there are loans meant specifically for businesses that are processing daily payments with credit or debit cards. MCAs are good for retail shops for which flexible payments are important, because you pay back more as you sell more and less as you sell less. Merchant cash advances are useful for retail stores that take most payments from credit cards. You simply take an advance against your future sales.
Retail Term Loans
Simple retail term loans are the most straight-forward type of retail business financing. You can get a retail term loan for almost any business purpose. With these loans, you get a lump sum of cash which you then have to pay back over an agreed upon period as per the terms you agreed to with your lender.
Retail Lines of Credit
A retail line of credit offers you a more flexible financing option. They can be used to pay for either short or long-term expenses.
After you get approved for a retail line of credit, you can draw funds as per your arrangement with the lender. You must then pay them back according to your arrangement with them. Typically, you can pay very little if anything at all to have a line of credit open, so they make a great backup option.
Retail Equipment Loans
Retail equipment loans are catered to the needs of retail businesses that make large equipment purchases. So, they can only be used to finance your equipment purchases. Because they use the purchased equipment as collateral, they can often be better and safer than term loans. The devil is in the details, so compare rates and repayment terms when comparing them to term loans.
Canada Small Business Financing Program Loans
The Canada Small Business Financing Program
was set up to make it easier to access business financing. It does this by sharing the risk with lenders, thus reducing your expenses.
The program is meant for businesses or startups with less than $10 million in gross annual revenues. You can find lenders who take part in the program to get a loan that offers you better rates.
Main Sources of Retail Store Loans in Canada
When possible, most retail business owners in Canada prefer to use their own funds for most expenses. Of course, thatâs often unfeasible. When retail business owners need funding, they often start with friends and family.
When possible, banks and credit unions are the preferred sources of retail financing. They offer the best rates on their loans and are well-established in Canadian communities. However, they are usually slower to provide their loans. They also have higher requirements when it comes to credit scores. Minimum amounts of time in business and minimum revenue requirements are also more stringent.
When Canadian retailers are rejected by banks, they often resort to alternative lenders. The same applies if they need money in a big rush. Alternative lenders provide faster service and will serve customers with low credit scores
Explore more
Similar products
- bad credit business loans
- clothing store business loans
- business loans usa
- emergency business loans
- gym fitness club business loans
- inventory business loans
- marketing business loans
- merchant cash advance business loans
- ecommerce business loans
- renovation business loans
- retail store business loans
- working capital loans
- business credit lines
- coffee shop business loans
- expansion business loans
- auto shop business loans
- food grocery store business loans
- home business loans
- invoice factoring
- medical dental practice business loans
- mid market financing
- point of sale financing
- restaurant business loans
- salon spa business loans
Why Choose Smarter Loans?
Access to Over 50 Lenders in One Place
Transparency in Rates & Terms
100% Free to Use
Apply Once & Get Multiple Offers
Save Time & Money
Expert Tips and Advice