The number one problem with hunting for retail financing is the relative lack of lenders that offer full-suite solutions. You can always find separate prospective lenders for one or other of your financial needs, but rarely can you find a single one that meets them all. Diversifying your monthly payments is not efficient or beneficial – especially when it comes to loans.

However, with that said, it is still better to opt for better individual solutions than a full-suite lender with objectively more costly terms. The following are some retail financing options that have withstood the test of time in any economy.

Retail Financing Option: The Merchant Cash Advance

If you’re a small or medium-sized store owner with a limited history in business, it can hard to secure bank funding to meet your cash flow objectives. It is for this reason that the short-term loan option of the merchant cash advance is so widely used. The market is largely unregulated, which means it’s a lot easier to get approved.

The merchant cash advance option gives the lender a percentage of your daily or weekly receipts (credit card, usually). The benefit here is that, since it’s a percentage, you are never overburdened during seasons of low sales. The daily credit take for the lender averages 12.5%. The terms vary somewhat depending on the company and the option you choose – such as the daily ACH loan that looks at total sales over a period of time, instead of daily sales.

Equipment Loans and Leasing

This is probably the best option for those who need to purchase machinery, since it helps keep your cash flow positive for day-to-day operations. These rings even truer if you opt for equipment financing rather than buying outright; there are many advantages to leasing over owning. The cost is one; the ability to upgrade at minimal cost is another.

With retail financing, working capital is the name of the game – after all, seasons of heavy buying fluctuate, and you want to make sure you can remain solvent through a downturn. The above are just a few of the lending and leasing options that will help you accomplish this goal and stay in business while others are floundering. Contact Bold Growth Solutions for more information.