Small Business Loans for Liquor Stores


Minyang Jiang

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.

SBA Loan for Liquor Store

The Small Business Administration (SBA) offers various loan programs to assist entrepreneurs, including those looking to start or expand a liquor store. SBA loans are government-backed, which means they come with attractive terms and interest rates compared to traditional financing options. The most popular SBA loan program for small businesses is the 7(a) loan.

An SBA 7(a) loan can be an excellent option for liquor store owners seeking funds for purposes such as purchasing inventory, equipment, real estate, or working capital. These loans offer flexible repayment terms, typically up to 10 years for working capital and inventory, and up to 25 years for real estate purchases. Interest rates are competitive and usually lower than conventional business loans.

However, obtaining an SBA loan involves a thorough application process, including submitting a comprehensive business plan, financial projections, and demonstrating creditworthiness. While the approval process can be lengthy, the favorable loan terms make SBA loans a worthwhile option for liquor store owners seeking funding to grow their business. Keep in mind that SBA loans have specific eligibility criteria, and it is essential to familiarize yourself with the requirements before applying.

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 have become an increasingly popular funding option for small business owners, including liquor store owners, who need quick access to capital. These loans are typically offered by alternative lenders and fintech companies, which operate through online platforms and provide a streamlined application process.

One of the main advantages of online business loans is their speed and convenience. With minimal paperwork, applicants can usually receive a decision within hours or even minutes. In some cases, funds can be transferred to the borrower’s account within a day or two, making these loans an ideal solution for covering urgent expenses or capitalizing on time-sensitive opportunities.

Another benefit of online business loans is their flexibility in terms of credit requirements. Lenders may be more willing to work with borrowers who have less-than-perfect credit scores or limited credit history, provided they can demonstrate a stable cash flow and solid business plan.

However, it’s important to note that online business loans often come with higher interest rates and shorter repayment terms compared to traditional bank loans. Borrowers should carefully evaluate the loan terms and assess whether the costs are justified by the potential benefits to their business.

In conclusion, online business loans can be a valuable financing option for liquor store owners who need fast, accessible funding. By comparing different lenders and carefully reviewing loan terms, entrepreneurs can find a financing solution that meets their business needs while minimizing costs.

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.