Wondering what business to venture in? Opening a retail store is a lucrative business venture that you and your future generations will take great pride in. One sad reality though is that even the smallest of retail stores require a sizeable upfront capital to kick-start. If you do not have cash at hand, you’ll find a business loan quite handy.
How can a Business Loan Help?
A business loan can help you finance whatever it is that you need to make your retail store succeed, including:
- Acquiring new equipment
- Acquiring real estate
- Purchasing inventory
- Supplementing working capital
- Investing in market research and marketing
How to Obtain a Business Loans for your Retail Store
Business Loans for Retail Stores are available on Canada’s online loan directory, Smarter Loans, where you can find the country’s top providers of business financing.
The loan application process can seem daunting, but it doesn’t necessarily have to be overwhelming. Here are the 5 primary steps on how to get a business loan for your retail store:
Get your research in order
One of the things that most lenders want to see before approving business loans is a business plan. Therefore, you need to embark on an extensive research on the current retail market and come up with a solid business plan before you make an application.
At Smarter Loans you’ll be able to find all the information you need to make the right decision for small business loans in Canada. You’ll discover reputable companies, their terms, conditions, interest rates, reviews and much more.
Determine your financial health
Besides gauging your understanding of your desired market niche, lenders will also establish your financial health before approving your loan application. The chief indicators of your financial health include your credit score, debt-to-income ratio, and operating cash margin, among others.
Figure out how much you need
One of the biggest mistakes that most aspiring business owners make when applying for loans is not being mindful of what they ask for. If you overestimate the amount, you might end up scaring off potential lenders as they may question your assumptions and credibility. If you underestimate the amount, you might end up with money problems that will put your business in jeopardy. Therefore, it’s important for you to figure out how much you need, and include an outline of your projected costs to demonstrate how the money you’re borrowing will be used.
Prepare relevant paperwork
You also need to put all relevant documents in order before making an application. Besides creating a viable business plan, you also need to ensure that your taxes are up-to-date and in good standing. If you intend to put up collateral, you need to have important documents to prove ownership and insurance.
Choose the right lender
There are different kinds of lenders that you can obtain a business loan from, including conventional banks, microlenders, government agencies, credit unions, and online lenders. It’s advisable to compare different lenders so you can choose the one with the most favorable terms.
When choosing a business financing provider in Canada, make sure to visit Smarter Loans, where Canadians can discover their options for any kind of loans and financing.
Applying for a business loan for your retail store can be stressful and time-consuming. The amount of time it’ll take to get an approval will largely depend on the type of lender you’re dealing with and the amount you’re asking for. With a good business plan and good financial health, your chances of getting approved fast are high.