(800) 949-0401 
Brick and mortar stores will not die anytime soon. From retail stores to a local mom and pop shop, there are many shoppers that keep brick and mortar stores in business. Brick and mortar companies will need business financing to keep their operations going. In this post, we will list the top financing options available for brick-and-mortar companies.
Reasons for Small Business Financing
One of the biggest reasons companies use small business financing is to stay afloat when cash flow shortages occur. By applying for additional working capital, business owners do not have to worry about where to find cash to fund the next cycle.
Financing is also great to help businesses to keep up with competitors. For example, companies that have lagged in purchasing new equipment or have not kept up with technological advances might end up scrambling to catch up. Financing is also helpful for those businesses that experience seasonal shortfalls of workers.
Inventory Management
Inventory is an item that your business owns that you want to sell in the future. It costs to have inventory sitting in a warehouse, whether it is raw materials or finished goods. Having inventory management will help keep inventory at optimal levels.
Efficient inventory management systems are necessary, but cash flow shortfalls can still happen during a normal operating cycle. There are modern inventory systems designed to streamline these processes which improves efficiency and lowers costs.
Payroll and Human Resource Management
It would seem that payroll and human resources should be two separate functions in a company but there is an overlap. Payroll handles the regular paychecks while the HR department is responsible for approving incentives for employees.
Many companies rely on temporary workers due to seasonal surges in customer activity. Retailers and package delivery companies might need extra people during the holidays. The HR person will be responsible for handling these adjustments during the season while payroll will take care of the payments of these workers.
Equipment Purchases
Equipment is essential to the operation of many businesses. Old equipment will break or become obsolete, no longer serving the needs of the business. When it is time to buy new equipment, business owners might decide to fund the purchase of this equipment with a loan.
Equipment is expected to last a few years, depending on the industry. This will require a longer-term funding option, and equipment loans are often a good match for these purchases.
The Business Financing Options Available
Equipment Loans
An equipment loan helps businesses get funding for buying business equipment. Equipment wears out, or when businesses are starting out, new equipment is needed. When considering this type of loan, you should determine whether to lease or buy the equipment.
Inventory Loans
Loans are available specific to this business function. This loan is harder to obtain as lenders will look at several factors including credit scores, personal finances such as expenses and bank statements.
Traditional Commercial Lending
For businesses that have large capital requirements with long term needs, a traditional business loan may be the right choice. This option is hard to qualify for, but the interest rates are low but only for businesses that qualify.
Business owners seeking this option should expect to put up a personal guarantee and collateral. a business plan might be requested by the lender. Once you submit an application, it can take weeks to determine if you will qualify for this funding source.
