This is some text inside of a div block.

Retail Small Business Loans: How to Get Business Loan for Retail Store

This is some text inside of a div block.


Retail Small Business Loans: How to Get Business Loan for Retail Store

This is some text inside of a div block.

Small Business Loans For Retailers

Lenders for Retail Business Loans

Fora Financial

  • Best for retail business loans for bad credit 
  • Minimum credit score 500

Fora Financial offers small business loans for retail businesses. Additionally they can offer merchant cash advances too. Retail business owners that may be struggling to qualify for a business loan may have better luck with Fora Financial thanks to their low minimum credit score requirement. Plus, businesses only need 6 months in business to be considered. From flexible requirements to qualify to prepayment discounts available, Fora Financial is a well-respected source for financing that helps businesses get the funds they need to grow. 


  • Best for fast retail business loans
  • Minimum credit score 625

Bluevine offers business lines of credit for retail businesses. Ideal for short-term working capital, Bluevine has a simple application process that allows applicants to receive a decision in minutes. Bluevine has simple interest rates which can make understanding offers and comparing offers simpler. Additionally, they offer weekly or monthly repayments. The downside is that loans can be expensive.

Rapid Finance 

  • Best for short term retail financing
  • Minimum credit score 620

Rapid Finance offers well, rapid financing. With a variety of funding options and flexible credit requirements, business owners can take advantage of their streamlined application process to qualify. If you need funds quickly and or have less than perfect credit, Rapid Finance may be the ideal partner to help you get a business loan. Rapid Finance can help business owners explore term loans, a line of credit, SBA loans, bridge loans, commercial real estate loans, asset-based loans, and merchant cash advances. 

Lender for retail business loans for bad credit: 

Fora Financial

  • Minimum credit score 500
  • Loans up to $1,500,000
  • Repayment period up to 15 months
  • Funding times as soon as 72 hours on approved applications


  • Fast funding available 
  • Prepayment discounts available 
  • No collateral required 
  • Low minimum credit score requirement (ideal for bad credit retail business owners)


  • Does not report loans to credit bureaus 
  • Factor rates instead of interest rates which can make offers hard to compare 
  • Longest term available is 15 months

Lender for fast retail business loans


  • Minimum credit score requirement 620
  • Loans up to $250,000
  • Repayment periods of 6 or 12 months 
  • Funding times as soon as 1 to 3 business days 


  • Fast funding available
  • Low minimum credit score requirement 
  • Simple application process with fast decisions 
  • Simple interest rates can make offers more straightforward 


  • Weekly payments may be required 
  • Personal guarantee required 
  • Potentially high interest rates
  • Does not service North Dakota, South Dakota, or Nevada

Lenders for short term retail business loans

Rapid Finance

  • Minimum credit score requirement 620
  • Loans up to 1,000,000
  • Repayment periods between 4-18 months
  • Loan approvals as fast as 24 hours 


  • Lower rate available if your credit score is 660 or higher
  • Same-day turnaround available
  • Works as a direct lender and connection service
  • Variety of lending products available 


  • Some loans come with daily or weekly repayments
  • Three-month terms can mean a high short-term cost
  • Not available to startups

What is a retail business loan?

A retail business loan is a financial arrangement that can fund various business expenditures within your retail business or platform. It can be utilized to cover a range of expenses, including:

In essence, a retail business loan can be used for any expenses that you may incur while owning and operating a retail business, but you should check spending restrictions before spending. There are typically no restrictions on what these funds can be used for just as long as they are used for business expenses. Note though that some retail business loans do have spending restrictions such as inventory loans which are intended only for inventory. Check with the lender to understand the ins and outs of your loan.

What types of retail business loans are available?

With a variety of retail business loans available, do your research, choose the option that’s best for your business, and take the necessary steps to qualify. Here are some popular types of retail business loans. 

With an SBA backed loan, the government guarantees up to 85% of your total loan. With small businesses being a staple to the economy, the government tries to find ways to support their success. To get an SBA loan, you’ll need to work with an SBA-approved lender and qualify. There are often more potential stipulations with an SBA Loan, such as what the funds can be allocated to, a personal guarantee of responsibility from the business owner, or criteria for how long a retail business has been in operation.

Equipment financing can serve as a business loan for retailers that are in need of new equipment for their business to operate more smoothly. This could be new computers, forklifts, or any new machinery your business may require to operate. With this type of retail store business loan, the equipment itself can serve as collateral. While this is ideal for many businesses, the downside is that retail business owners can still be on the hook for payments even if their equipment breaks or depreciates in value over time.

Similar to equipment financing, this retail business loan is usually secured by the inventory itself. This is helpful in situations where you need to get inventory stocked, but do not have the cash flow to support that demand. 

A business line of credit, or business LOC, grants flexibility to the retailer to jump on opportunities as they arise. This predetermined amount can be accessed at any time up to a certain limit, similar to a credit card, and interest is only payed on the amount borrowed. 

This type of retail business loan may be most helpful in a quick-fix situation, like making payroll after a major setback, or an emergency repair. These loans are typically approved quickly, but may come with higher interest rates. 

How much can I borrow with a retail business loan?

Business loans for retailers can vary in amount, typically between as little as $1,000 - $500,000, depending on what the business qualifies for. This can, of course, vary by lender, business credit score, and other eligibility requirements

To view your business credit from a lender’s perspective, visit mySMBscore. With access to valuable insights you can access information that can help you determine what your business might qualify for. Plus, you can access personalized business loan offers too. 

What are the requirements for obtaining a retail business loan?

There are a few factors that can contribute to the likelihood of being approved for a retail business loan. Beyond that, you’ll want to access competitive offers. Aside from your personal and business credit scores, time in business, debt to income ratio, down payments or collateral, and annual revenue may all be considered. Requirements can vary depending on the lender, type of loan, and overall risk presented. 

How long does it take to get approved for a retail business loan?

Approval times can vary depending on the lender, the type of loan, the information provided, and other factors. Online lenders are known for providing some of the fastest approvals. To access personalized business loan offers in minutes, visit mySMBscore. When you submit your information to any lender be sure to submit accurate and complete information as this can help expedite the process. 

What is the interest rate for a retail business loan?

According to data from the Federal Reserve, the interest rate on an average small business loan ranged from 5.11% to 10.46%, but this can vary widely. To find out what your business qualifies for, check offers at mySMBscore today. 

How do I repay a retail business loan?

Repayment on a retail business loan typically begins the month following its issuance. Arrangements can be made in a variety of ways including:

  • Equated Monthly Installments (EMIs): These payments can be fixed rate and regularly scheduled. Interest can accumulate monthly over the course of the loan term. 
  • Bullet Payments: In this case, retail business loan borrowers pay only on the accumulated interest until the loan term has ended, then the principal will be paid in one lump sum. 
  • Prepayment: It is not uncommon for retail business owners to want to close out their loans as soon as they’re able to, but doing so may come with prepayment penalties. Check with your lender to find out if your loan has prepayment penalties. 

What happens if I can't repay a retail business loan on time?

In the event that you cannot repay a business loan on time, there can be many consequences. If you backed the loan with collateral, the lender can seize the collateral. Whether you backed the loan with collateral or not, your business and or personal credit score can be negatively impacted. If you’ve encountered a tough financial time, be proactive. Reach out to the lender before it’s too late and try to work out a payment plan that works. 

What are the pros and cons of a retail business loan?

A retail business loan may not be right for every situation. It’s important to consider both the pros and cons of a loan for retail businesses before committing to business financing. 


  • Build business credit
  • Take advantage of competitive offers
  • Grow your business 
  • Predictable payments that you can budget for


  • May be difficult for retail business borrows with less than favorable credit
  • Collateral could be required
  • Interest rates can vary 
  • Taking on debt 

What are the types of retail business loans available? 

There are two types of retail business loans available; unsecured and secured. A secured loan typically just means that there is collateral that has been put up in the event of a default. 

How can I use the money from a retail business loan?

Some retail business loans have more restrictions than others. Check with the lender to determine what restrictions a loan has. Some business loans will allow retail business owners to use the loan on just about any business expenses. Common ways to use the money from a retail business loan include:

  • Inventory 
  • Delivery systems
  • Vehicles 
  • Equipment
  • Designing storefronts
  • Creating websites 

Do I need collateral to obtain a retail business loan?

Some business loans require collateral. Whether you need collateral to qualify or not will depend on the requirements. Backing the loan with collateral can reduce the risk for the lender, thus helping your business receive more favorable offers. 

Can I apply for a retail business loan if I have bad credit?

A retail business loan can be difficult to get approved for with bad credit. With a convincing business plan, a co-signer, or collateral - it is possible to find lenders that may work with you. If it’s something you can put off, it is advisable to improve your credit scores before applying for a retail business loan. MySMBScore can help you focus on areas that need improvement so you can find  a loan offer you feel comfortable with. 

What documents do I need to apply for a retail business loan?

Before you begin your application for a retail business loan, you should have some documents ready. These may include:

  • Business plan
  • Personal identification
  • Financial statements  (this may include tax returns, bank statements, income statements and cash flow statements)
  • Business documents (this may include licenses, commercial space agreements, contracts and permits)
  • Collateral documentation ( in the event you are putting up collateral for your loan, you may need documentation for those possessions including deeds, titles or certificates)

Can I get a retail business loan if I am a new business?

The Small Business Association has programs for start up retail businesses that need financing. These SBA loan programs include SBA Microloans and SBA Community Advantage Loans. Most lenders have a requirement for time in business, although startup loans may be available. 

How do I choose the right lender for my retail business loan?

MySMBscore can connect you with lenders who specialize in retail business loans. Viewing personalized business loan offers is simple on our one stop business financial platform. Our lending platform utilizes self-learning AI to constantly analyze a broad selection of current and historical data, such as loan performance, accounting and macro-economic data from over 1,200 organizations.

MySMBscore can help return more competitive offers by empowering you with valuable information. By accessing your SMB (small-medium sized business) credit score, understanding its components, and knowing what lenders prioritize, you can improve your financial position and increase your chances of approval.

Top Loans