Last Updated on
Estimated read time: 7 minutes
If you run a retail outlet or any type of retail business and require capital to improve your clothing line inventory, modernize your retail store, or just need cash to keep the doors of your shop open, a retail business advance from MCA (Merchant Cash Advance) is a great alternative for retail business owners looking for access to quick financing.
We offer retail business advances ranging from $5,000 to $900,000 to help grow your retail enterprise. We fund all types of retail businesses, including clothing stores, electronics shops, and specialty stores.
Securing financing from banks for retail businesses can be a lengthy and challenging process, often taking weeks or even months to obtain, with strict approval requirements, extensive paperwork, and a preference for businesses with perfect credit.
An advance from MCashAdvance for retail companies offers simpler approval, no paperwork or collateral, the possibility of receiving funds within 24 hours or up to 3 days, and accepts poor credit scores with no hard credit check that won’t impact your credit score upon application.
Get a Retail Loan Alternative Now
| MCA Feature | Offer Details |
|---|---|
| MCA Amounts: | $5,000 – $900,000 |
| Factor Rate: | 1.1 – 1.5 |
| Holdback | 10 – 25% |
| Repay In: | 3 – 18 months |
| Funding Time: | 1 – 3 days |
Applying is easy, free, and won’t impact your credit score.
Get the retail financing you need today.
What is a Retail Cash Advance?
A retail cash advance is a type of merchant cash advance (MCA) created for retail businesses, including clothing stores, electronics shops, and specialty stores.
Your retail business sells a portion of its revenue to MCashAdvance in exchange for an upfront lump sum of funds called a cash advance.
In exchange, we will deduct a small percentage of your daily sales revenue until the advance is fully repaid.
Emergency Funding for Retail Stores
When facing urgent funding needs in your retail business, such as managing daily expenses or covering unexpected costs, a retail store cash advance can provide the financial support your business needs. Traditional loans are hard to get and can take a long time, often needing lots of paperwork and collateral. But, retail store cash advances are different. They give you fast access to money, usually in just 24 hours to 3 days. The great thing is, you can use this advance for any purpose in your businesses
Retail Store Financing for Any Purpose
Here are 14 common ways a cash advance can be utilized in your Retail Store:
- Invest in Retail Technology: Upgrade to advanced POS systems or inventory management software to streamline operations.
- Remodel Retail Space: Refresh or expand your store to attract more customers and display more merchandise.
- Run Marketing Campaigns: Invest in marketing or advertising to increase visibility and attract more shoppers.
- Promote Sustainability: Incorporate eco-friendly practices like energy-efficient lighting or recycling programs.
- Upskill Staff: Train your team for improved shopper assistance and smoother operations.
- Reduce Theft: Invest in advanced surveillance systems or theft deterrence strategies.
- Enhance Shopper Atmosphere: Create a more inviting shopping environment with comfortable seating, pleasant lighting, or interactive displays.
- Expand to E-commerce: Build or improve an online store to reach a wider audience and boost online sales.
- Integrate Mobile Payments: Offer more payment options with mobile payment technologies for faster checkout.
- Improve Supply Chain: Enhance supply chain processes for timely and cost-effective merchandise acquisition.
- Create Popup Shops: Explore pop-up shop opportunities to test new markets or products and generate buzz.
- Integrate Shopper Rewards: Develop or enhance customer loyalty programs to encourage repeat business and build a loyal customer base.
- Increase Seasonal Inventory: Stock up on seasonal or holiday-specific merchandise for peak seasons.
- Improve Store Accessibility: Make your space more accessible, following ADA guidelines, to widen your customer base and meet legal requirements.
Retail Store Cash Advance Example
Let’s say you need a $30,000 retail merchant cash advance to buy extra clothing inventory for the holiday season in your retail store. If you are approved for $30,000 and receive a funding offer with a factor rate of 1.15, your total repayment amount will be $34,500 (Advance Amount + Fees).
| Details | Example |
|---|---|
| Advance Amount | $30,000 |
| Factor Rate | 1.15 |
| Avg Monthly Credit Card Sales | $17,000 |
| Holdback Percentage | 15% of Daily Credit Card Sales |
| Daily Credit Card Sales | $566.67 per day (approx.) |
| Daily Payment Amount | $85.00 per day (approx.) |
| Repayment Term (in days) | Approximately 406 days |
| Repayment Term (in months) | Approximately 13.37 months |
| Total Repaid | $34,500 (Advance Amount + Fees) |
Retail Store Funding Eligibility
To be eligible for funding from MCashAdvance you must meet these 5 criteria:
- Your retail store must have been operational for at least 6 months
- Your shop should be generating a minimum of $100,000 per year in revenue
- As the retail store owner, your personal FICO score needs to be 550 or higher
- Your retail business must utilize a business checking account
- You, as the retail store proprietor, must be over 18 years of age and a U.S. citizen
How to Get a Retail Advance from MCashAdvance
To get an advance for your retail business from MCashAdvance, follow these 5 steps:
Step 1: Begin Online Application: Click Apply for an MCA to begin.
Step 2: Fill in Your Details: Provide information about your retail store and some personal details as the owner of the store.
Step 3: Submit Bank Statements: Upload the last three months’ bank statements of your retail store.
Step 4: Await Review Process: Our underwriters will review your cash advance application to determine if funding is viable.
Step 5: Receive Offer and Funding: Once you get a funding offer, review it. If it suits your business needs, accept it, sign the MCA agreement and the funds will be deposited into your business account.
Get a Retail Business Advance Now
or learn more about business cash advances
Retail Business Funding FAQs
Retail stores may be eligible for SBA loans, with the most likely options being the SBA 7(a) Loan, SBA Microloan, SBA Express Loan, and SBA Community Advantage Loans.
Retail businesses typically don’t rely on invoices to the extent that would make them eligible for invoice financing. Invoice financing is more common in business-to-business (B2B) transactions.
Banks generally require retail businesses to have a minimum of two years in operation, a FICO credit score of 680 or higher, three years of cash flow records, and a clear business plan detailing fund usage. Meeting these minimum criteria increases the likelihood of bank approval. If you can’t meet these requirements, consider applying for financing through alternative options like MCashAdvance, which may offer more favorable eligibility criteria.
Retail stores can purchase equipment like point-of-sale systems and use the point-of-sale systems as collateral to secure financing. At MCashAdvance, you can acquire point-of-sale systems using our advances without having to use the equipment as collateral.
Certainly, retail businesses can access business lines of credit from most lenders when they meet certain qualifications specific to the retail industry. These typically include maintaining a FICO credit score of 660 or higher, operating as a retail business for at least one year, and consistently generating monthly retail revenue exceeding $5,000.
Your Retail Cash Advance repayment will involve a set percentage being deducted from your store’s daily or weekly sales. This deduction can either be from your store’s bank account. To understand the three main types of repayment options in detail, you can refer to our article on how to repay an MCA.
You should consider a Retail Cash Advance when your store requires quick funding and traditional loan options are not feasible. It’s ideal for meeting short-term financial needs and is an effective solution if your sales are expected to cover the advance promptly.
The main types of Retail Cash Advances you can opt for are Automated Clearing House (ACH) advances and Merchant Cash Advance (MCA) Split. In ACH advances, repayments are directly taken from your business bank account, while in MCA Split, repayments are a portion of your store’s daily credit card sales.