Revenue-Based Financing For Retail Stores
As one of the leading revenue-based financing providers, Mantis Funding will work with you to create a custom-made plan for your success to support your retail business dreams.
What You Need To Know About Financing Retail Stores
From retaining employees to developing a customer base and marketing your business, there are many unique challenges facing retail store owners today — some of which can impact your bottom line. Unexpected expenses like renovations or repairs could hamper your retail store sales if you don’t handle the issues quickly enough. Maybe you’re just starting out, and the initial inventory expense has you seeing stars. Don’t worry, though: Mantis Funding is here to help. Revenue-based financing for your retail business can be applied to many areas of your company and help you to get back on track.
How to Use Retail Store Financing
It’s not uncommon for retail store owners to run into cash flow problems. Retail stores can have low-profit margins due to the nature of their business. Companies may experience supply chain disruptions, changes in the market, and changing consumer habits — all of which could impact the financial status of your company.
Retail store financing can allow you to put funds toward renovations, marketing projects, new hires, and other retail technology like a mobile app, improving the customer experience and helping your store to thrive.
Retail Store Financing Process
Mantis Funding understands the unique needs of retail stores and offers a streamlined funding process to get you the capital you need to thrive. Here’s a breakdown of the steps involved:
- Quick and Easy Application: Our online application process is designed to be fast and convenient. Simply provide basic information about your business, including your financial history and funding goals. There’s no lengthy paperwork or complicated procedures involved.
- Eligibility Check: Once you submit your application, our team will conduct a quick eligibility check to determine if your retail business meets our basic criteria. We have a low credit score requirement, so even businesses with less-than-perfect credit may qualify.
- Funding Approval: Our streamlined approval process allows us to make funding decisions within a few business days, so you can move forward with your plans without delay.
- Revenue-Based Financing Solutions: If approved, we’ll work with you to determine the most suitable funding option based on your specific needs. Our revenue-based financing solutions offer flexible funding solutions tailored to the retail industry.
- Transparent Agreement: We believe in clear and transparent communication. Before finalizing your funding, you’ll receive a detailed agreement outlining the terms and conditions. This ensures you understand all aspects of your funding arrangement upfront.
- Fast and Secure Funding: Once the agreement is signed, we’ll work diligently to deposit your funding into your business account quickly and securely within one business day.
- Ongoing Support: Our commitment to your success goes beyond funding. Our team is available to provide ongoing support and answer any questions you may have throughout your journey.
Throughout the entire funding process, Mantis Funding focuses on providing a fast, hassle-free experience. We understand the importance of access to capital for retail stores, and we’re here to help you secure the funding you need to fuel your growth.
Required Documentation for Retail Store Financing
Mantis Funding strives to make the application process for retail store financing as smooth as possible. To expedite your application review, please be prepared to submit the following documentation:
General Business Information
- Completed Application Form: This form will gather essential details about your business, including its legal structure, ownership information, and contact details.
Financial Documentation
- Bank Statements: Through our application page, you’ll also be able to connect your business bank account with Plaid to securely provide bank statements (typically 3-6 months) which will provide an overview of your business’s cash flow and financial health.
- Tax Returns: Your most recent federal and state tax returns offer valuable insights into your business’s profitability and tax obligations.
- Financial Statements (if applicable): For established retail businesses, audited financial statements like a balance sheet, income statement, and cash flow statement may be required.
Additional Documents
- Business Licenses and Permits: Copies of any relevant business licenses or permits required to operate your retail store in your state.
- Proof of Ownership: Documentation verifying any business assets, such as vehicles or equipment that you may have.
- Merchant Account Statements (if applicable): If your business accepts credit card payments, recent merchant account statements can demonstrate your processing volume and financial activity.
Please note: Specific requirements may vary depending on the type of retail store you own and your state’s regulations. Contact Mantis Funding directly if you have any questions about the required documentation or a unique business situation you wish to share with our team.
Credit Qualifications for Retail Store Financing
Unlike some traditional lenders, Mantis Funding knows credit scores aren’t the only measure of a successful retail business. However, a strong credit history does play a role in the financing approval process. Here’s what you need to know:
- Credit Score Minimums: While there’s no single credit score requirement, some lenders propose a minimum threshold be put in place. Depending on the lender, a score in the mid-600s range is often considered an ideal benchmark. At Mantis Funding, low credit scores are OK!
- Business vs. Personal Credit: Mantis Funding typically considers both your credit history and your business credit score. A strong track record managing business finances can help offset a lower personal credit score and vice versa.
- Beyond the Score: While credit score is important, it’s not the sole factor in securing funding. Our team considers your entire financial picture – including business cash flow, profitability, and experience in the retail industry.
Why do Retail Stores Choose Mantis Funding?
Retail stores choose Mantis Funding because of our tailored, flexible financing solutions designed specifically for the unique challenges of the retail industry. We prioritize speed and simplicity, ensuring that funds are accessible quickly to keep operations running smoothly. With transparent agreements and dedicated ongoing support, Mantis Funding provides not only the financial resources but also the expertise and partnership required to help stores succeed.
How soon can I get Retail Store Financing?
With Mantis Funding, securing the capital you need is quick and easy. Once you complete our simple online application, our team will conduct a quick eligibility check and provide funding decisions within hours. Upon signing the agreement, funds are typically deposited into your business account within one business day.
What are the Pros and Cons of Retail Store Financing?
Before deciding to secure external funding for your retail business, it’s crucial to research and consider both the benefits and potential drawbacks thoroughly. Here are some key points to help you make an informed decision:
Advantages
- Quick Access to Capital: Mantis Funding provides fast approval and disbursement, enabling you to address business needs and opportunities swiftly.
- Flexible Funding Solutions: Tailored financing options designed specifically for your industry ensure that you receive funding that aligns with your unique requirements.
- Minimal Credit Score Requirements: Even businesses with less-than-perfect credit can qualify, making funding accessible to a wider range of entrepreneurs.
- Transparent Terms: Clear and upfront terms and conditions help you understand your financial obligations without hidden surprises.
- Ongoing Support: Mantis Funding offers continuous assistance and expert guidance throughout the funding process to support your business growth.
Disadvantages
- Dependency on External Financing: Relying on external funding may lead to dependency, potentially affecting long-term financial independence.
- Qualification Criteria: While Mantis Funding has minimal requirements, not all businesses may meet the eligibility criteria.
Frequently Asked Questions About Retail Store Financing
Finding funding to expand your retail store business might seem like a daunting task. Mantis Funding is here to answer all your questions and provide you with hand-tailored revenue-based financing solutions.
Retail store financing is available for everything from small boutiques to multiple franchised locations. In order to see an increase in profit, retail store owners must first invest in their store location, inventory, marketing outreach, and customer experience. Revenue-based financing for retail businesses allows companies to increase their cash flow in order to make crucial business decisions without the lack of funds holding them back. At Mantis Funding, we’ll provide customized repayment plan options so you can secure funds while continuing to grow your business.
When it comes to securing funding for a retail store, most lenders have a list of requirements you’ll need to meet. They may require your credit score, yearly revenue, age of company, business plans for funds and tax returns.
At Mantis Funding, our eligibility requirements are simple:
- Your business has been operational in the U.S. for at least 6 months.
- You own at least 50% or more of the business.
- You can pass a minimal credit score check — low credit scores are ok!
If you meet these basic requirements, then we invite you to fill out an application for funding so our representatives can get started on the approval process.
There are a variety of benefits to retail store financing. With retail store financing, you can:
- Invest in new customer technology
- Expand your marketing initiatives
- Hire and retain staff
- Expand your inventory stock
- Increase Payroll Funds
Unlike typical small business loan requirements, the revenue-based financing that Mantis Funding provides is a hassle-free process with quick turnaround times. Our combination of experience, industry knowledge and great customer service make us a perfect partner for your business. We offer flexible repayment structures to suit your business needs. Once the terms have been finalized and you accept the offer by signing the financing agreement, we will complete the bank verification and funding call process so that you can quickly receive the funds in your business bank account within one business day.
There are a variety of financing options available for retail stores. Options include:
Small Business Loans: Small business loans can be provided to you through a bank or another alternative lending institution. Your credit score, revenue streams, and current debt may play a role in securing a small business loan.
Business Line of Credit: Retail store owners can take out a line of credit as one financing option. They would then pay interest rates on the amount that they actually borrow and make payments back over time.
Small Business Administration (SBA) Loans: SBA connects small business owners to reputable lenders that generally offer lower interest rates and better agreement terms. The different SBA loans include 7(a) loans, 504 loans, and Microloans. 7(a) loans have no minimum amount, which makes them ideal for retail store owners. They have a maximum limit of $5 million. Microloans are great for financing equipment and machinery while 504 loans have a fixed rate over a long period of time.
Equipment Financing: Equipment financing allows you to finance fixed assets that are integral to your store’s operations.
Mantis Funding offers revenue-based financing which is an alternative form of financing that exchanges working capital (cash) for a set amount of the business’s future revenue streams.
Revenue-based financing is an alternative form of financing that exchanges working capital for a set amount of the business’s future revenue streams. Various sectors like the trucking, retail store, and automotive industries can all benefit from revenue-based financing when they need to grow their business in a short amount of time — all with fewer regulations than are commonly associated with traditional lenders. Companies don’t have to give up any equity either, as is typical with venture fundraising.
The amount of financing that a business qualifies for will ultimately be based on the total monthly revenue that it generates. Repayment structures are either daily or weekly, and they are directly debited from the business’ bank account.
View our How it Works page to learn about the three main differences between a traditional business loan and revenue-based financing.
Other Industries We Service
We service a wide variety of industries, including the retail and automotive sectors, as well as both medical and liquor stores. Industries range from trucking businesses to nightclubs. We also service other industries that are not included on this list and invite you to fill out an application for funding so our representatives can reach out to you. We understand the challenges of the market and cash requirements for business owners and will be able to walk you through every step of the way.
Get in Touch
Want to learn more about our application process or still have other questions?
Our qualified representatives are standing by to lend a hand.