Updated September 10, 2022
Operating a liquor store is a dream come true for most. You get to work with people, sell a variety of popular beverages, and earn great money while you’re at it. One of the primary attractions of liquor stores is that they remain a reliable business model, even in slumping economies. Liquor stores are known for attracting a wide range of regular consumers throughout the year, and to keep up with these high demands, consistent loans are imperative. Is an online small business lending service what you need to operate a successful liquor store?
Why a Loan for Liquor Stores is Often Needed?
On average, liquor stores rotate their product between 8 and 10 times every year, meaning you’ll need constant funding to keep your shelves continuously stocked. Given it’s such a highly competitive industry, with most towns having a liquor store every couple of blocks, there is a lot you will have to do as a business in order to gain regular patronage from consumers. Consumers have a number of priorities when it comes to choosing their favorite store. Just a few of the things they look for are:
- A clean, well-maintained store that is both highly organized and attractive.
- Pleasant employees who are helpful, knowledgeable, and eager to work.
- Well-stocked shelves that possess all of the brands they are seeking.
- A convenient location that is easy to find, with ample parking so they don’t have far to walk.
These four things are critical to consumers everywhere, and it will be a continued investment to ensure these goals are met. When choosing the location of a new store, oftentimes the better locations have higher rental fees. Having ample startup small business capital will be essential in securing an ideal location that is convenient for consumers and provides plenty of parking spaces. Highly trained and knowledgeable staff is also imperative, which will require regular funding to provide training, payroll, and employee benefits. Additionally, funding is essential in order to maintain the structural integrity of the store, attend to needed repairs, and keep your shelves continually stocked with the best products.
Loan Basics for Liquor Stores
There are a variety of loan options available to you so you can launch your new business successfully. Some of the more common loan options are:
Commercial Business Loans
Commercial business loans offer low interest rates, long-term payment plans, and large loan amounts, enabling you to fund the majority of your business venture, while accruing less interest overall. However, they are challenging to qualify for and will require a sound business plan and excellent business credit. In many cases, collateral will need to be provided.
Government-bckaed loans entail higher interest rates than commercial loans. They offer long-term payment plans, so they can be paid off comfortably over time. No collateral is needed, and they are much easier to qualify for, making them a great choice if your credit is lacking.
Business Credit Cards
Business credit cards can be secured or unsecured, but for new business owners, you will likely have to provide collateral. They will enable you to make large purchases as needed, providing you with a steady stream of revenue to cover business expenses as you go. They can be very helpful to have in the event of an emergency, to attend to necessary repairs, or to restock popular products.
Online Business Loans
Online business loans provide an easy way to obtain money immediately, without having to worry about your credit. They are often high-interest, short-term loans that are very easy to qualify for and great for emergency cash.
The Bottom Line on Loans for Liquor Stores
In order to run a successful liquor store and compete with neighboring businesses, you’ll need a constant flow of cash at your disposal. In the event you don’t qualify for a traditional loan, government-backed loans, business credit cards, and online loans can help to fill the gaps while you work on building your business credit. For all your working capital needs, contact Credibly.