How much do you need?
We’ll start with a brief questionnaire to better understand the unique needs of your business.
Once we uncover your personalized matches, our team will consult you on the process moving forward.
Here are 7 of the best retail business loans
Lender | NerdWallet Rating▼ | Max loan amount▼ | Min. credit score▼ | Next steps |
---|---|---|---|---|
OnDeck - Line of credit with Fundera by NerdWallet | 5.0/5 Best for Working capital needs | $100,000 | 625 | with Fundera by NerdWallet |
Fundbox - Line of credit | 4.9/5 Best for Startups | $150,000 | 600 | Read Review |
Bank of America Business Advantage Unsecured Term Loan | 4.8/5 Best for Low interest rates | Undisclosed | 700 | Read Review |
Fora Financial - Online term loan with Fundera by NerdWallet | 4.5/5 Best for Bad credit | $1,500,000 | 570 | with Fundera by NerdWallet |
National Funding - Equipment Financing with Fundera by NerdWallet | 4.2/5 Best for Equipment financing | $150,000 | 600 | with Fundera by NerdWallet |
SBA 7(a) loan with Fundera by NerdWallet | Best for Large loan amounts | $5,000,000 | 650 | with Fundera by NerdWallet |
PayPal Working Capital Loan | Best for PayPal users | $300,000 | 300 | Read Review |
Here are 7 of the best retail business loans
Best for Working capital needs
Best for Startups
Best for Low interest rates
Best for Bad credit
Best for Equipment financing
Best for Large loan amounts
Best for PayPal users
I'M INTERESTED IN:
Our pick for
Working capital needs
OnDeck’s line of credit can provide working capital up to $100,000. This credit line can help you buy additional inventory during your busy season or cover overhead costs during a seasonal slow.
OnDeck - Line of credit
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.
- Requires personal guarantee.
OnDeck - Line of credit
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.
- Requires personal guarantee.
Qualifications:
- Minimum credit score: 625.
- Minimum time in business: One year.
- Minimum annual revenue: $100,000.
- No bankruptcies in the past two years.
Our pick for
Startups
Fundbox offers flexible funding for retail stores that have been in operation for at least six months.
Fundbox - Line of credit
Pros
- Financing available within one business day after approval.
- Simple application with minimal documentation required.
- Startup-friendly — accepts borrowers with a minimum of six months in business.
- Low minimum credit score requirement.
- No prepayment penalties, account maintenance fees or inactivity fees.
Cons
- Rates are high compared with traditional banks.
- May require personal guarantee.
- Weekly repayments required over a short term (maximum of 24 weeks).
Fundbox - Line of credit
Pros
- Financing available within one business day after approval.
- Simple application with minimal documentation required.
- Startup-friendly — accepts borrowers with a minimum of six months in business.
- Low minimum credit score requirement.
- No prepayment penalties, account maintenance fees or inactivity fees.
Cons
- Rates are high compared with traditional banks.
- May require personal guarantee.
- Weekly repayments required over a short term (maximum of 24 weeks).
Qualifications:
- Minimum credit score: 600.
- Minimum time in business: Six months.
- Minimum annual revenue: $100,000.
Our pick for
Low interest rates
Bank of America’s unsecured term loan offers low interest rates and competitive repayment terms. It can be a good option for established retail businesses that want to upgrade their physical location, purchase new equipment or open a new store.
Bank of America Business Advantage Unsecured Term Loan
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.
Bank of America Business Advantage Unsecured Term Loan
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.
Qualifications:
- Minimum credit score: 700.
- Minimum time in business: Two years.
- Minimum annual revenue: $100,000.
Our pick for
Bad credit
Fora Financial provides funding up to $1.5 million that can be used for purchasing supplies, upgrading technology, investing in marketing or hiring sales associates. You may be able to qualify with a minimum credit score of 570 or higher.
Fora Financial - Online term loan
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.
Fora Financial - Online term loan
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.
Qualifications:
- In business for at least six months.
- At least $20,000 per month in revenue.
- No open bankruptcies or dismissed bankruptcies within the past year.
Our pick for
Equipment financing
If you need to purchase equipment for your retail business, National Funding issues equipment loans up to $150,000.
National Funding - 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 - 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.
Qualifications:
- Minimum credit score: 600.
- Minimum time in business: Six months.
- Minimum annual revenue: $250,000.
Our pick for
Large loan amounts
SBA 7(a) loans can provide up to $5 million in funding. So far in fiscal year 2024, 11.3% of all 7(a) loans have been issued to businesses in the retail industry.
SBA 7(a) loan
Pros
- Large borrowing maximums.
- Interest rates are capped.
- Long repayment terms available.
Cons
- Personal guarantee is required.
- Collateral is typically required.
- Longer processing times than online lenders.
SBA 7(a) loan
Pros
- Large borrowing maximums.
- Interest rates are capped.
- Long repayment terms available.
Cons
- Personal guarantee is required.
- Collateral is typically required.
- Longer processing times than online lenders.
Qualifications:
- For-profit U.S. business.
- Unable to access credit on reasonable terms from nongovernment sources.
- Financial qualifications determined by individual lender.
Our pick for
PayPal users
If your retail business uses PayPal to process sales, you may be able to get a PayPal Working Capital loan. This funding is repaid as a percentage of your PayPal sales, with a minimum repayment every 90 days.
PayPal Working Capital Loan
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
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.
Qualifications:
- Hold a PayPal Premier or PayPal Business account for at least 90 days.
- Minimum $15,000 in PayPal sales in the past year ($20,000 for Premier).
- No outstanding PayPal Working Capital Loan.
- No minimum credit score requirement. PayPal doesn’t perform a credit check because the loan is based on your PayPal account history.
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.