This is the last in a series of posts where Direct Capital explores why working capital loans work for small businesses. Today, we cover applications for the retail industry.
Stock greatness in your inventory.
A little help from working capital loans* never hurt. If you’re in a retail setting, working capital loans can help you to get reduced prices on the inventory you need. That’s something I touched on in our posts about the automotive industry and restaurant industry.
Here’s two really good reasons to explore working capital.
This is a huge reason for retailers to check out working capital. Let’s say you’re a sporting goods store owner named, I dunno, Johnny Football. You can get a huge order of 1,000 football helmets for a ridiculously low price, just in time for the start of high school football season.
But you lack the cash on hand. Do you pass up the offer because you can’t afford it right then, knowing you missed a shot? Or do you go for a traditional bank loan that will take so long to complete that the deal will have gone to its grave?
Neither, of course. You go for working capital, get the money while you need it and purchase the inventory. Chances are good that you’ll recoup your money and then some once you make all those sales, so it’s very worthwhile.
Capitalizing On Competitors
There’s another great time to get working capital loans if you’re a retailer, and you can figure it out by keeping a close eye on your competition.
In these days of shaky stock markets, it’s not surprising that many retailers are either going out of business or dialing back their operations. As cold as it might sound, that provides an opportunity for your business. If your competitors are floundering, it may be time to get your hands on some capital, launch new products or services and market heavily. As a matter of fact, it’s probably the best time, because you have a chance to increase your market share.
Because you can get working capital loans in little time and with minimal paperwork, you can strike while the iron is hot. And for anyone who has ever struck a cold iron, you know how important that is.
If you own a retail store, have you or will you be using working capital loans soon? Let us know!
Photo credit to iStock.
*Working capital not available in the following states: AK, DE, ND, VT