Best Business Loans for Clothing Stores


Jeffrey Bumbales

Running a successful clothing store can be challenging, particularly given that retail stores are known for requiring high operational expenses. Selling clothing is a fiercely competitive industry. Given clothing styles change frequently, store owners need to be prepared to alter their marketing tactics and replenish their inventory, so they can cater to fluctuating trends. There are loans available to help business owners access the capital needed to keep up in the competitive world of fashion.

Choosing the Best Business Loans for Clothing Stores

Whether you need money to secure property, invest in new clothing and accessories, market your business, or furnish and decorate your store, there are loans available to aid in the growth of your business.

Retail Loans

A retail loan is designed to help entrepreneurs access the financing needed to obtain commercial retail property. Retail loans can be obtained through banks or private investors, and eligibility and interest rates are determined based on your credit score. Ideally, investors seek business owners with a credit score of 680 or higher.

For established businesses seeking to expand their operation, investors will require copies of your average monthly sales reports and business plan. For first-time entrepreneurs, a down payment or collateral will be required to secure the loan.

Business Cash Advances

For businesses that are already fully established, a business cash advance can be a great way to acquire the funding needed to cover routine operational expenses. Advances can be applied for online, and the amount of money provided will depend on your monthly credit card sales. Quantities range from $2,000 to $100,000, making this a dependable option for investing in new merchandise, renovating your store, or altering your advertising campaign.

While credit scores are sometimes considered, they are not the primary determining factor, and even those with poor credit can be eligible to receive business cash advances. The money is repaid based on a fixed percentage of your credit card sales, so you repay the advance at a rate that corresponds with your business’s budget.

U.S. Small Business Administration (SBA)

The SBA offers government-backed loans to clothing store owners which can be used to pay for inventory, store fixtures, marketing, and any other routine expenses. The SBA offers government-backed loans, which means the government is partially securing the money, enabling the SBA to take bigger risks when lending. This allows them to cater to first-time entrepreneurs, brand new businesses, and people with poor credit scores.

The SBA Express Loan is a convenient option for entrepreneurs, as it enables business owners to secure up to $350,000 in as little as 36 hours. With government-backed loans, interest rates are often higher than commercial loans, given the greater risk that the lender takes. In addition, collateral is required to secure the loan. Repayment terms will be negotiated with the lender on a case-by-case basis but are often negotiated on monthly terms that align with the budget of your business.

Getting Started With Business Loans For Clothing Stores

Running a successful clothing store is an arduous endeavor that requires hard work, perseverance, and flexibility to succeed. Between the demanding competition, the high operational costs, and the constantly fluctuating nature of fashion, you need to continually invest in the future of your business in order to remain ahead of rival companies.

If you own a clothing store you will likely need an injection of cash from time to time. That’s when you need to know about the best business loans for clothing stores. It’s important to choose an option that meets your unique needs. Get the funding your business needs to continually exceed consumer demands. For all your working capital needs, contact Credibly.