In fact, Statista reported that there were more than 38,000 grocery stores in the United States in 2017. Due to this, it’s crucial that you hire working employees, frequently replenish inventory, and focus on financial planning, among other aspects. If you’ve recently reviewed your grocery store business plan and noticed that you’re having trouble paying for certain costs, it might be time to consider applying for additional working capital. Although it can be intimidating to pursue business lending, it might be necessary if you want to improve your store.
How to Select Grocery Store FinancingThere are numerous types of financing to consider. Common types of business funding for convenience store business owners include:
- Term loans: If you'd like a funding option with a set repayment schedule and amount, a term loan will be the most viable option for you.
- Merchant cash advances: Does your grocery store accept frequent credit card payments in small amounts? If so, you will likely benefit from merchant funding. Often, business owners appreciate this type of financing because the provider will primarily be focused on your business's credit card sales, instead of your credit history or other factors.
- SBA loans: If you can prove that you don't qualify for traditional funding sources, you may be able to receive a business loan from the SBA.
- Business lines of credit: In some cases, business owners seek a credit line so that they can borrow against it as needed. A notable benefit is that most line of credit lenders will only charge you an interest rate based on the money that you use.
- Business credit cards: Often, business owners appreciate having access to a credit card so that they can charge expenses as needed. However, if you are prone to overspending, this may not be the best financing option for you.
- The amount of money you require for your business
- Your business and personal credit scores
- The amount of monthly sales that your business earns
- How long your grocery store has been operational
- If you have existing debt or outstanding loans