Retail Business Loans: Best Options and How to Get One
Retail Business Loans: Best Options and How to Get One
Sort By
Pros
- Fast access to working capital.
- Accepts borrowers with a minimum credit score of 625.
- Streamlined application process with minimal documentation required.
- Can be used to build business credit.
Cons
- Not available in North Dakota.
- May require frequent weekly payments.
- Interest rates can be high compared with traditional lenders.
OnDeck - Line of credit
Best for Working capital needs
Pros
- Fast access to working capital.
- Accepts borrowers with a minimum credit score of 625.
- Streamlined application process with minimal documentation required.
- Can be used to build business credit.
Cons
- Not available in North Dakota.
- May require frequent weekly payments.
- Interest rates can be high compared with traditional lenders.
Pros
- Financing available within one business day after approval.
- Simple application with minimal documentation required.
- Low minimum credit score, time in business and annual revenue requirements.
- No prepayment penalties, account maintenance fees or inactivity fees.
Cons
- Rates are high compared with traditional banks.
- Weekly repayments required over a short term (maximum of 24 weeks).
Fundbox - Line of credit
Best for Startups
Pros
- Financing available within one business day after approval.
- Simple application with minimal documentation required.
- Low minimum credit score, time in business and annual revenue requirements.
- No prepayment penalties, account maintenance fees or inactivity fees.
Cons
- Rates are high compared with traditional banks.
- Weekly repayments required over a short term (maximum of 24 weeks).
Pros
- Bank loan with competitive interest rates.
- No collateral required.
- Bank of America’s Preferred Rewards program can offer interest rate discounts and other perks.
Cons
- Can be slow to fund.
- Prepayment fees may apply to early repayments.
- Must be an existing Bank of America customer to apply online.
- Charges an origination fee.
Bank of America Business Advantage Unsecured Term Loan
Best for Low interest rates
Pros
- Bank loan with competitive interest rates.
- No collateral required.
- Bank of America’s Preferred Rewards program can offer interest rate discounts and other perks.
Cons
- Can be slow to fund.
- Prepayment fees may apply to early repayments.
- Must be an existing Bank of America customer to apply online.
- Charges an origination fee.
Pros
- Cash can be available quickly.
- Get a discount for prepaying.
- No collateral required.
- Low minimum credit score requirement.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Can’t build business credit.
- Longest loan term is 18 months.
- Charges an origination fee.
Fora Financial - Online term loan
Best for Bad credit
Pros
- Cash can be available quickly.
- Get a discount for prepaying.
- No collateral required.
- Low minimum credit score requirement.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Can’t build business credit.
- Longest loan term is 18 months.
- Charges an origination fee.
Pros
- Funding in as little as 24 hours.
- Prepayment discounts available.
- Offers loans to startups and borrowers with bad credit.
- No collateral or down payment required.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Requires higher annual revenue than other online lenders.
- Misleading website marketing: National Funding offers only short-term loans and equipment financing/leasing.
- Charges an origination fee.
National Funding - Equipment financing
Best for Equipment financing
Pros
- Funding in as little as 24 hours.
- Prepayment discounts available.
- Offers loans to startups and borrowers with bad credit.
- No collateral or down payment required.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Requires higher annual revenue than other online lenders.
- Misleading website marketing: National Funding offers only short-term loans and equipment financing/leasing.
- Charges an origination fee.
SBA 7(a) loan
Best for Large loan amounts
Pros
- Large borrowing maximums.
- Interest rates are capped.
- Long repayment terms available.
Cons
- Collateral is typically required.
- Longer processing times than online lenders.
SBA 7(a) loan
Best for Large loan amounts
Pros
- Large borrowing maximums.
- Interest rates are capped.
- Long repayment terms available.
Cons
- Collateral is typically required.
- Longer processing times than online lenders.
PayPal Working Capital Loan
Best for PayPal users
Pros
- No credit check required.
- Low minimum revenue requirements based on PayPal sales.
- Funding available within minutes after approval.
Cons
- Automatic daily repayments deducted as a percentage of your PayPal sales.
- Minimum payment of 5% or 10% of your total loan amount every 90 days.
- Fixed fee structure can make it difficult to compare costs to other loans.
PayPal Working Capital Loan
Best for PayPal users
Pros
- No credit check required.
- Low minimum revenue requirements based on PayPal sales.
- Funding available within minutes after approval.
Cons
- Automatic daily repayments deducted as a percentage of your PayPal sales.
- Minimum payment of 5% or 10% of your total loan amount every 90 days.
- Fixed fee structure can make it difficult to compare costs to other loans.
What is a retail business loan?
- Purchase inventory or equipment.
- Make payroll.
- Hire new employees.
- Pay for utilities and other day-to-day expenses.
- Launch marketing or advertising campaigns.
- Upgrade your technology.
- Expand your online presence.
- Improve or expand your physical location.
Types of retail business loans
Business term loans
Business lines of credit
🤓 Nerdy Tip
If you need to buy inventory for your retail business, you might consider inventory financing. With inventory financing, the products you buy serve as collateral on the loan, making it easier to qualify for than more traditional loan options. Inventory financing is available as a term loan or line of credit.SBA loans
Equipment financing
Merchant cash advances
Where to get retail business loans
Banks and credit unions
Online lenders
How to get a retail business loan
1. Evaluate your financing needs
2. Review your qualifications
3. Compare lenders
- Loan types.
- Maximum loan amounts.
- Repayment terms and schedule.
- Interest rates and fees..
- Funding speed.
- Application process.
- Lender reputation.
4. Gather your documentation and apply
- Basic information about you and your business.
- Personal and business bank statements.
- Personal and business tax returns.
- Business financial statements.
- A description of your collateral.
- Existing debt obligations, if applicable.
Ready to get funding for your retail business?
- If you think you can qualify for a bank loan: Explore the best banks for small-business loans.
- If you need fast access to funds or can’t qualify for traditional options: Compare the best online business loans.
- If you don’t want to take on debt: Consider alternatives like small-business grants or crowdfunding.
Methodology
Wondering if you qualify?
It’s possible to get a business loan even if you have bad credit. Bad-credit business loans are available from alternative sources, like online or nonprofit lenders.