--- title: 6 Loans for Retailers to Boost Your Small Business description: In this blog, we cover six kinds of loans that may be available for retailers to help you choose the best fit. image: https://smartbizbank.com/hubfs/Imported_Blog_Media/loans-for-retailers-1.jpg --- - [Share](https://smartbizbank.com/blog/loans-for-retailers-to-boost-your-small-business#) - - - - [mailto:?subject=Check%20out%20https://smartbizbank.com/blog/loans-for-retailers-to-boost-your-small-business](mailto:?subject=Check%20out%20https://smartbizbank.com/blog/loans-for-retailers-to-boost-your-small-business) # 6 Loans for Retailers to Boost Your Small Business March 18, 2023 By [Megan Grant ](https://smartbizbank.com/blog/author/megan-grant) The retail industry faces many unique challenges, such as frequent high and low seasons, and ever-changing trends. The retail industry also has quite a bit of upfront expenses, such as inventory, salaries, and real estate for retailers with physical locations. To support retailers, lenders typically offer a wide range of available loans. [![See if you pre-qualify](https://no-cache.hubspot.com/cta/default/21458256/3d216d78-601b-4bc6-b9d5-3df52894e921.png)](https://cta-redirect.hubspot.com/cta/redirect/21458256/3d216d78-601b-4bc6-b9d5-3df52894e921) In this blog, we cover six kinds of loans that may be available for retailers to help you choose the best fit. While there is indeed some overlap between these loans, one may be a better fit for your unique business.  ### 1. SBA 7(a) loans SBA loans are the go-to loans for retailers and small businesses, and for good reason! They typically offer generous terms of repayment and competitive interest rates, making them appealing to those in need of working capital, debt refinance, equipment, hiring, and more.  One of the reasons that SBA 7(a) loans are good for retailers is that they are guaranteed up to 85% by the Small Business Administration (SBA). This means that, should your business be unable to repay the loan (under the agreed-upon terms), a huge part of it will likely be covered by the government. This layer of security typically means that you are less of a liability and banks are more likely to take on your loan.  - Amount of loan: [Maximum of $5 million](https://www.sba.gov/funding-programs/loans/7a-loans#section-header-4) - Period of repayment: Up to 10 years - Terms of repayment: Monthly payments toward the principal and interest Time needed for approval/funding: [5-10 business days](https://www.sba.gov/partners/lenders/7a-loan-program/types-7a-loans), but it can take more than a month for your funding to be available. If you work with SmartBiz®, once your application is approved by the bank, funds may be deposited into your bank account in as fast as seven days. ### 2. SBA 504/CDC loans Another loan offered by the SBA is the 504 Loan. It’s also called a CDC loan because it’s offered exclusively through the organization’s [community-based partners](https://www.sba.gov/funding-programs/loans/504-loans#:~:text=504%20loans%20are%20available%20exclusively%20through%20Certified%20Development%20Companies%20(CDCs).%20First%2C%20%E2%80%AFfind%20a%20CDC%E2%80%AF%20in%20your%20area%20to%20ensure%20you%20are%20dealing%20with%20a%20qualified%20lender.) that aim to boost economic development in their areas, also known as Community Development Companies (CDCs).  The SBA 504/CDC loan can be used to create jobs and grow your business, including buying or improving your facilities, and equipment or machinery for long-term use. But it cannot be used for inventory, refinancing or repaying existing debts, or investing in real estate. - Amount of loan: [Maximum of $5 million](https://www.sba.gov/funding-programs/loans/7a-loans#section-header-4) for major fixed assets - Period of repayment: Available in 10 and 20-year maturity terms - Terms of repayment: Monthly payments toward the principal and interest - Time needed for approval/funding: 30-90 days, although it typically varies ### 3. Lines of credit Retailers generally experience many periods of highs and lows — whether it’s natural seasonality because of holidays, or specific consumer behaviors such as lower sales before payday weekends. To cope with this tide, businesses typically must be liquid to meet their short-term obligations and necessities.  A business line of credit is an agreement with a lender that enables you to access a finite amount of cash instantly when needed. You will only have to pay back, with interest, the amount that you withdraw or use. A line of credit can be accessed through different ways — check, credit card, etc.  - Amount of loan: $30,000 to $300,000 - Period of repayment: May be between 2 and 5 years - Terms of repayment: Monthly (amount used and interest) - Time needed for approval/funding: Differs between financial institutions SmartBiz facilitates lines of credit through our lending partners and additional information including requirements is available [here](https://smartbizloans.com/line-of-credit). ### 4. Merchant cash advances A merchant cash advance is not necessarily a loan; it’s an agreement that the business will use a percentage of its future sales to repay the upfront capital that it borrowed from the lender. This is in contrast to paying through monthly or yearly installments as you would in a traditional loan. The repayments are generally automatically deducted from your credit card sales until the amount borrowed, plus any fees or interest, are repaid. An MCA is typically a good option for retailers that need access to cash in a flash — some financial institutions may allow the business to access the money within hours of applying online. This type of loan for retailers typically has a high approval rate, it doesn’t require collateral, and you generally don’t have to worry about meeting a certain credit score requirement.  - Amount of loan: Maximum of $500,000 - Period of repayment: Varies from 3 months to 3 years - Terms of repayment: Daily - Time needed for approval/funding: Typically a week or less [![See if you pre-qualify](https://no-cache.hubspot.com/cta/default/21458256/ff58ca82-d4f3-40af-ab9e-19ecd5636cab.png)](https://cta-redirect.hubspot.com/cta/redirect/21458256/ff58ca82-d4f3-40af-ab9e-19ecd5636cab) ### 5. Business credit cards Business credit cards function similarly to how they do for individual consumers — they generally allow you to access cash immediately so that you can purchase what you need, and then repay it in installments over a certain period. You only pay back what you used for the month — with interest, although some financial institutions use 0% interest to gain an edge over the competition. While there are different kinds of credit lines, credit cards are arguably the most popular form because they tend to come with extra benefits. For example, many banks partner with other establishments to offer cash back rewards, which means that you may get some money back when you pay with a credit card. You can then allocate this extra cash toward other expenses for your business.  - Amount of loan: Maximum of $250,000 - Period of repayment: Ongoing, as long as you use the card - Terms of repayment: Monthly payments (amount spent plus interest, if applicable) - Time needed for approval/funding: Between a week and 10 days ### 6. Inventory financing Inventory financing is another type of business line of credit that is specifically used to purchase products (also known as inventory) that will be sold by a borrower at a later time. This type of loan is typically [used by small to mid-sized and privately-owned businesses](https://www.investopedia.com/terms/i/inventory-financing.asp#:~:text=This%20kind%20of,business%20expenses.) that need a lot of inventory but struggle to get major loans because they don’t have the financial history or current assets as big-name players, and they cannot issue bonds or stocks.  Inventory financing for retailers may be used to maintain your cash flow, update your product lines, increase your products in stock, and respond to higher levels of customer demand.  - Amount of loan: Depends on the appraised value of inventory needed - Period of repayment: Can be anywhere from approximately 3 months to a year - Terms of repayment: Monthly payments (amount spent plus interest, if applicable) - Time needed for approval/funding: Typically less than two weeks ## Finding loans for retailers with SmartBiz With all these options, do you need help narrowing down the best loan for your retail business? SmartBiz makes it easy for you to apply and helps match you with the best lender that meets your needs. Our financial professionals are available to answer questions and help guide you through the streamlined application.  [Apply now](https://www.smartbizloans.com/apply) to see if you pre-qualify*! [![See if you pre-qualify](https://no-cache.hubspot.com/cta/default/21458256/fecfd265-0de2-48ae-800b-c205310ef667.png)](https://cta-redirect.hubspot.com/cta/redirect/21458256/fecfd265-0de2-48ae-800b-c205310ef667) ![Q3 Promo E1](https://smartbizbank.com/hubfs/Q3%20Promo%20Email%20Images/Q3%20Promo%20E1.png) ### Access Funds Quickly Apply for a Bank Term Loan from a bank in our trusted network [![See if you pre-qualify](https://no-cache.hubspot.com/cta/default/21458256/08df270b-4561-4437-a5aa-11d47ef08efb.png)](https://cta-redirect.hubspot.com/cta/redirect/21458256/08df270b-4561-4437-a5aa-11d47ef08efb) - [Follow SmartBiz](https://smartbizbank.com/blog/loans-for-retailers-to-boost-your-small-business#) - - - - - ### Access to the right loan for right now We’re connecting small businesses with SBA, bank term loans, lines of credit, and flexible financing options. [![See if you pre-qualify](https://no-cache.hubspot.com/cta/default/21458256/08df270b-4561-4437-a5aa-11d47ef08efb.png)](https://cta-redirect.hubspot.com/cta/redirect/21458256/08df270b-4561-4437-a5aa-11d47ef08efb) ##### Topic - [Business Loans](https://smartbizloans.com/blog/tag/business-loans) - [Business Stories](https://smartbizloans.com/blog/tag/business-stories) - [Marketing](https://smartbizloans.com/blog/tag/marketing) - [Money Management](https://smartbizloans.com/blog/tag/money-management) - [Operations](https://smartbizloans.com/blog/tag/operations) ## Related Posts [ See all blog posts ](https://smartbizbank.com/blog) [Money Management July 01, 2026 ## How to Reforecast Your Budget Based on Summer Trends When you built your company’s budget for this year, you no doubt looked at past data. However, there were probably also some future projections that... Read More ](https://smartbizbank.com/blog/reforecast-your-budget-with-summer-trends-smartbiz-bank) [Money Management June 24, 2026 ## The Counterintuitive Truth About Summer Slowdowns For many small business owners, summer is an uncomfortable time of year. Many consumers travel or spend more time at home, which typically leads to them making fewer... Read More ](https://smartbizbank.com/blog/do-less-this-summer-to-grow-your-business-smartbiz-bank) [Money Management June 22, 2026 ## Small Business Revenue: Determine Where You Stand As a business owner, regularly reviewing your annual revenue gives you a clear picture of your company’s current health and helps you evolve your business strategically so... Read More ](https://smartbizbank.com/blog/small-business-revenue-determine-where-you-stand) ### Smart growth is smart business ## Access to the right loan for right now See if you pre-qualify, without impacting your credit score. 1 [ Apply Now ](https://smartbizbank.com/apply) 1. We conduct a soft credit pull that will not affect your credit score. However, in processing your loan application, SmartBiz Bank and the lenders with whom we work will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may impact your credit score. The SmartBiz® Small Business Blog and other related communications from SmartBiz BankSM are intended to provide general information on relevant topics for managing small businesses. Be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed. 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