How to Use a Florist Business Loan | Fora Financial Blog
How to Use a Florist Business Loan to Grow Your Flower Shop
September 01, 2021

How to Use a Florist Business Loan to Grow Your Flower Shop

Is your florist business trying to bloom, but you don’t have enough cash flow to execute your bright ideas? If this is the case, we’re here to tell you why your flower shop business could benefit from business financing.

By applying for financing from a reputable business lender, your florist business can make investments that will make you stand out to potential customers. Plus, it will allow you to invest in your company’s short- and long-term goals.

There are numerous financing options available for florists. You could pursue a loan from an alternative lender, a merchant cash advance, a bad credit business loan, SBA loans, credit cards, or a line of credit.

Before you apply, make sure that you conduct considerable research. That way, you can ensure that you’re choosing an option that meets your needs, and that you will meet the financing requirements (like credit score and monthly sales).

Keep reading to find out how you can assess your florist business plan and make improvements using a small business loan!

9 Ways to Use a Loan in Your Florist Business Plan

1. Have Money to Afford Seasonal Expenses

The flower business booms around romantic holidays like Valentine’s Day, or during the summer when patrons like to purchase fresh flower arrangements for their homes. Get ahead of schedule by doing some sales forecasting so that you can receive financing before busy seasons.

Once you receive financing for your florist business, you can afford costs such as:

  • Hiring additional employees
  • Purchasing extra inventory
  • Updating interior decorations to match the season if you’re a retail florist

Don’t run the risk of being unprepared; you could lose out on business to other local florists!

2. Invest in Marketing Strategies

Florist business services may not always be top-of-mind to your target market. For instance, patrons might not research florists until they have an event to attend or want to send well-wishes to a loved one.

Therefore, you need to make sure that your flower shop business is regularly advertised by investing in methods such as:

  • Paying for Yelp advertisements
  • Create sponsored Facebook and Instagram posts
  • Send out direct mail pieces with coupon offers

Creating a diverse marketing strategy will help you reach as many customers as possible and increase sales. This is why it can be a smart area to spend working capital financing on!

3. Purchase Floral Inventory

To run a flourishing flower shop business, you’ll need to receive consistent floral inventory shipments. Chances are, this is one of the main areas that your business spends money on, and it’s a cost that isn’t going away. Being low on inventory could mean having to turn-away customers, which should never be an option.

Apply for a working capital loan, and you won’t have to worry about affording inventory expenses.

4. Offer Delivery Services

Make it easy for customers to receive their orders by investing in delivery services, if you don’t provide them already. Customers will appreciate being able to send floral arrangements to loved ones and may not have time to physically pick up orders themselves. By offering delivery services, you can accommodate customers who may not have visited your business otherwise.

5. Include Customizable Options

If your floral arrangements are mass-produced; your customers will likely visit a floral business that provides personalization. Capitalize on this market by purchasing items to create bouquets for birthdays, graduations, funerals, and other occasions.

Don’t just stick to basic options; the more creative you are with your floral designs, the better reception you’ll receive from customers.

Of course, paying for these modifications can add up. However, if you want your florist business to be profitable, it’ll be worthwhile to invest in these expenses.


6. Pay for an Online Ordering System

If you want to streamline your flower shop’s ordering process, invest in an online ordering system! Paying for order management software may seem like a costly investment, but it’ll be worthwhile once your customers are able to easily place their orders.

This is a great initiative to start once you have access to working capital financing. That way, you can pay for the online ordering technology, without running out of money for routine costs like rent, inventory, and payroll.

7. Hire Additional Employees

To provide great customer service, you might benefit from hiring more employees to fill orders, answer customer questions, and maintain your store.

If your business is currently understaffed, it could be affecting your customers’ experience. By hiring a few more sales associates, you can ensure that your business runs smoothly!

8. Expand Your Business

When you pursue a loan for your florist business, you can take your company to the next level.

Most likely, when you started a business, you had short term goals that you wanted to achieve. But now, your business may be outgrowing its current situation, leading you to consider your next move.

For example, right now your business might be exclusively online, or perhaps you have one brick and mortar location. If business is booming, you should consider expanding your existing business! You could open another florist shop or expand your existing location to a a larger space.

9. Use as Extra Cash Flow

As a small business owner, you know that cash flow is king; without it, running a successful flower shop will be challenging.

Once you’re approved for business financing, you’ll have additional cash flow available to put towards making payroll, paying bills, or affording last-minute expenses.

You’ll be glad that you have cash flow to work with, and your business’s products and services will likely improve, too!
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How Will You Invest in Your Floral Shop with Business Financing?

Now that you’ve learned about the how you can use a small business loan for your florist business, review your florist business plan. That way, you can determine how you can best utilize a service business loan!

Editor’s Note: This post was updated for accuracy and comprehensiveness in September 2021.

Fora Financial

Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved, or otherwise endorsed by any of these entities.

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Fora Financial is a working capital provider to small business owners nationwide. In addition, the Fora Financial team provides educational information to the small business community through their blog, which covers topics such as business financing, marketing, technology, and much more. If you’d like to see a topic covered on the Fora Financial blog, or want to submit a guest post, please email us at [email protected].