Retail Business Loans

Build your business from the ground up with construction financing.

You’re ready to put in the work and turn your dream of running a retail business into reality. But you’re met with more expenses than you had expected: inventory purchases, technology costs, marketing expenses, and hiring and training your employees. These costs can put a dent on your working capital.

Whether you’re running a retail store or an ecommerce business (or both!), you’ll need a steady stream of working capital to stay competitive.

Retail business loans could be the financing solution you need to keep your retail business afloat.

What is a Retail Business Loan?

Retail business loans are types of loans custom-made for retailers. You can use the funds from a retail loan for almost any purpose related to maintaining or growing a retail business.

There are different types of retail financing options for small businesses and there are other ways to use the loan, including inventory purchases, payroll, and marketing investments.

At 1West, we work closely with our clients to ensure that they’ll get the best deal possible, and we’ll do the same with yours.

The Pros and Cons of Retail Financing

Smart business owners make sure to weigh their options to truly understand if a loan program is right for their business. Here are some of the pros and cons of retail loans:


  • Improve credit. If you need to improve your personal or business credit rating, a retail business loan can help if the lender you’re working with reports timely payments to credit bureaus. Having a solid business credit rating can help you qualify for better financing terms in the future.
  • Competitive interest rates. Interest rates for different retail business loans vary depending on a number of factors, including collateral, creditworthiness, years in business, etc. Since there are different types of retail financing options, you can compare loans and opt for the lowest interest rates in the market.
  • Fixed monthly payments. Variable expenses can be hard to plan for, especially for seasonal retail businesses. Some loans provide fixed monthly payments so you know exactly how much you owe each month. This can be helpful when you’re creating a budget for your business.


  • High credit scores may be required. Some types of loans may require a higher credit rating than others. It’s important to know that you may not qualify for the best terms in the market if your credit scores aren’t that high.
  • Collateral may be necessary. Again, this also depends on the type of loan you’re applying for. Borrowers with low credit scores may be asked to pledge collateral for additional security. Inventory is a common type of collateral for retailers, but accounts receivables, home equity, and equipment are also applicable.

How a Retail Loan can Help Your Business

You can use a retail business loan for any expenses incurred while running your business. Here are some of the examples of how a retail loan can help your business:

Purchase Inventory

Construction companies know that securing additional working capital to fund growth and expansion Inventory is the lifeblood of retail businesses. You’ll need to have enough inventory to cater to the demands of your customers. If you frequently run out of products, you can use the funds from a loan to purchase high-quality inventory.

Pay for Retail Technology

Technology can make you and your employee’s work easier and it also allows you to provide a seamless experience for your customers. You can purchase retail technology solutions like mobile apps for your customers, a CRM system, or platforms to offer more payment services like Apple Pay, Amazon Pay, or Google Pay.

Keep in mind that the technology you choose should depend on your business’s goals and needs. Use your business plan or evaluate your processes and identify areas you need to improve on. For example, do you need to expand your payment options? Or do you need to upgrade your POS? Whatever you need, you can use a retail business loan to pay for new retail technology.

Renovate Your Interior

First impressions matter in the retail industry. Boring décor and outdated furniture can deter your customers from stepping into your store. If you think your store’s interior could use a revamp, it’s a great idea to use a retail business loan to renovate your interior.

You can start small by painting your walls, updating your signage, and moving furniture around to give your store a fresh, new look. You can also change the layout, like positioning sale items near counters to encourage last-minute purchases or reorganize shelves to make more room for new items. There are many different ways to style and renovate your store.

Launch a Marketing Strategy

If you want to expand your reach, get more leads, and ultimately convert them into customers, consider launching a marketing campaign. Using the funds from a loan, you can pay for developers to create an ecommerce store for you, digital marketers to create social media accounts, or send email newsletters to your customers.

By launching a well-researched marketing campaign, you will attract more customers and increase your sales.

Improve Cash Flow

Many retail businesses are subject to seasonality. If cash flow fluctuates from time to time, having quick access to financing can help bridge gaps in cash flow during slower seasons. You can use the money to pay for equipment repairs and purchases, unforeseen expenses, or for day-to-day working capital needs.

Retail Business Loans for You

Business Line of Credit

Having access to working capital whenever you need it is a great asset for many retail business owners. A business line of credit gives you access to a credit line to withdraw money from as needed. Unlike a traditional term loan, you don’t repay the entire credit limit. You only need to pay back the money you’ve withdrawn, plus the interest incurred. A business line of credit is best for retailers who want to establish a safety net for unforeseen expenses. However, you can also use the funds from almost any business need.

SBA Loans

Having access to working capital whenever you need it is a great

The Small Business Administration (SBA) created SBA loans to help small businesses, including retailers, qualify for bank-rate financing. SBA loans are offered through banks and other SBA-approved lenders and these loans offer the best rates in the market. If you qualify, you get to enjoy lower interest rates, longer repayment terms, and higher loan limits.

There are different types of SBA loan programs you can apply for, including SBA 7(a) loans (best used for working capital and inventory purchases) and SBA 504/CDC loans (best used for equipment and real estate).

It’s important to note that you don’t apply for these loans through the Small Business Administration. You’ll need to apply for SBA loans through SBA-approved lenders. Each lender has its owner criteria, so don’t lose hope if the first lender you’ve worked with denied your application.

Equipment Financing

If you’re looking to apply for a loan to purchase retail equipment, check out equipment financing. This financing option gives you the money you need to purchase a POS system, delivery vehicles, and even furniture or fixtures for your renovations.

You don’t need to pledge any personal or business assets because the equipment you’re looking to purchase serves as collateral for the loan. However, lenders have the right to repossess the equipment if you default on the loan.

Apply for Retail Business Loans with 1West

We understand that your retail business is as unique as the products you sell. At 1West, we make sure to provide the best financing suitable to your goals and objectives. We work with over 50 lending partners, so you can easily compare rates, terms, and products.

Apply for a retail business loan today!

Find out which lender, loan, and terms best fit your needs at no obligation on your part.

We help you through the whole process.

You don’t have to go through it alone.

Call us anytime (888) 881-WEST

Monday – Friday | 9am – 6pm

FAQS (Frequently Asked Questions)

What are Retail Loans?

Retail loans cover a wide range of loan types. Personal loans such as car loans, mortgages, signature loans, and credit cards all fall under the category of retail loans, but business or commercial loans may also fall into this category.

Mainly if a business owner obtains a business line of credit, an installment loan, a property mortgage, an equipment loan, a small business credit card, a microloan, or practically any other sort of loan for their business.

What is the Minimum Credit Score Required to Get a Retail Loan?

A credit score of 700 or higher is ideal when applying for a collateral-free retail loan. Meanwhile, if you’re after a secured retail loan, you may get approval even if with a lower credit score, say between 600 and 700. Anything lower than that, specifically a score of 550 to 600, is already deemed insufficient to meet the loan eligibility criteria.