The 6 Best Retail Business Loans for Your Business

Retail businesses need fund infusion to grow their business as their business depends upon ordering goods in bulk from the manufacturers and distributors as they provide discounts on the large orders. However, consumers take their own time to purchase, which results in a working capital gap for which the retail businesses need funds regularly. Other reasons for which the retail businesses need funds are to expand the business, revamp the shopping experience for customers and adding services as a part of the overall experience like air conditioning and so on.

To get access to these funds, the retail businesses need retail business loans and the traditional lenders have been tough on retail shops as they want collaterals against which they may underwrite loans also they need a lot of time to process the business loans, which takes even months on some occasions and hence the entire objective of raising the business loan for retail store goes for a toss.

However, things turned positive for retail stores with the digital lenders coming in to picture who are offering retail business loans on the basis of the business transactions of retail businesses which ensures they do not have to provide any collaterals which is mostly not present with a majority of small retailers and even the application process is completely online and fast. Here are the top 6 retail business loans for your retail business:

1.   Working Capital Loan

Retail businesses need working capital loans to order goods in bulk from the manufacturers and distributors to get access to larger discounts that helps them to earn better margins. The digital lenders like Indifi provide unsecured retail business loans to cover their working capital expenses, these loans are easy to apply and can be availed in no time. Indifi also offers complete flexibility in repayments to the retail stores.

2.   Term Loan

To cover the long term business needs of the retail businesses the digital lenders also offer the Term Loans to cover the expenses like revamping or extending of their shop and adding customer amenities in their shop  to provide better service and convenience to customers. Unlike the traditional lenders who offer term loans against collaterals the digital lenders like Indifi also offer unsecured retail business loans as Term Loans. Indifi also offers a flexible repayment  schedule that is more suited for the business cycle of retail businesses.

3.   Merchant Cash Advance

The Merchant Cash Advance or MCA is a new age product offered by the digital lenders which helps the retail businesses to get business loans based on their transactions against the card swipe machine or the payment wallets. The lenders like Indifi evaluate their creditworthiness based on these transactions and offer retail business loans that are completely linked to business and even the repayments are connected to transactions which ensures there is no need to think of regular EMIs.

4.   Unsecured Loan

Availability of unsecured retail business loans has been the biggest boon for small businesses from the days when the traditional lenders only gave business loan for retail store against collaterals and multiple documentations. The new age digital lenders like Indifi evaluate the credit worthiness of retail businesses on the basis of their transactions, these transactions could be against the card swipe machine, payment gateway or even the grocery and delivery apps. Since, these unsecured loans are linked to business transactions they also offer the complete freedom to the retail businesses in terms of repayments, they may choose to link the repayments to the business transactions or even repay in weekly, fortnightly or monthly transactions.

5.   Invoice Discounting

Invoice Discounting is a unique product that helps the retail businesses who regularly supply to the large corporates and big business houses, they can submit the invoices raised to these corporates to the digital lenders like Indifi which offers up to 80% of invoice value to the retail businesses as retail business loans and retailers can use the amount in full or partially as per their convenience. Also, they only need to pay only for the amount used and for the number of days used. The retail business can pay the amount back to the lenders when they get their payments for the corporates.

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