Retail business loans: everything you need to know
Wed | November 2022
The U.S. retail market is large, competitive, and constantly evolving. In 2023, total retail sales reached $7.22 trillion, marking a 61.9% increase compared to 2013. Meanwhile, e-commerce now accounts for 16.1% of all retail sales as of 2024, highlighting how digital channels continue to shape the way consumers shop.
And the growth isn't stopping there—the market is expected to hit $10.4 trillion by 2028, opening even more opportunities for retail business owners to expand and adapt.
You're in the right place if you're part of this dynamic industry and looking for ways to fuel your business growth. Accessing the right kind of financing can help you stock inventory, cover marketing and payroll costs, or invest in technology to stay competitive.
In this article, we'll walk you through everything you need to know about retail business loans and financing options so you can choose the best one for your store—online, brick-and-mortar, or both.
How Financing Can Support Your Retail Business
Running a retail business—online, in-person, or both—comes with high operating costs. One of the most common financial challenges retail owners face is a cash flow gap between purchasing inventory and making sales. That’s where retail business loans can help.
Here are a few common uses for financing in retail:
Balance inventory with customer demand
Purchase new products and merchandise
Boost cash flow during slow seasons
Hire and retain staff
Launch new initiatives
Upgrade technology
Invest in marketing
Now that you understand how financing can support different areas of your retail business let’s take a closer look at the top loan and funding options available to help you put that plan into action.
Top 5 Business Loans and Financing Options for Retail Stores
1. SBA Loans — Best for General Business Expenses
SBA loans, backed by the U.S. Small Business Administration, are offered through banks, credit unions, and online lenders. Depending on the type, these loans can range from $30,000 to $5 million and offer competitive interest rates.
For retail businesses, two common SBA options include:
SBA 7(a) Loans – Ideal for working capital, marketing, and inventory.
SBA 504 Loans – Great for purchasing real estate or equipment.
Keep in mind: SBA loans often have strict requirements and can take longer to get approved due to high demand.
2. Business Line of Credit — Best for Managing Cash Flow Gaps
A business line of credit offers flexible access to capital, making it perfect for seasonal retail stores or businesses with fluctuating sales. Unlike traditional loans, you only pay interest on the amount you use.
One key difference? With a line of credit, you don’t always have to specify how the funds will be used, which gives you more flexibility in managing unexpected expenses.
Want to learn more? Read: What is a Business Line of Credit and How to Qualify?
3. Merchant Cash Advances — Best for Time-Sensitive Expenses
A merchant cash advance (MCA) is a form of financing based on your business's future revenue. It's a fast and flexible option, especially if your credit score isn't ideal.
Terms usually range from 3 to 18 months, and repayment is tied to your daily or weekly sales. This may be a strong option if your retail business is generating consistent revenue but needs fast capital.
Tip: Read our guide on how merchant cash advances work before deciding.
4. Equipment Financing — Best for Buying or Upgrading Tools
Do you need new shelving, store fixtures, or point-of-sale systems? Equipment financing allows you to borrow up to 100% of the equipment’s value, and the equipment itself often serves as collateral.
This option is beneficial if you want to preserve your working capital while upgrading your physical or digital tools.
5. Inventory Financing — Best for Stocking Up
If your only goal is to buy inventory, inventory financing might be the right choice. Like equipment loans, this type of financing uses the inventory itself as collateral, which can help reduce interest rates.
Traditional banks may be less likely to offer this type of loan to small retail businesses, so you’ll typically have better luck with alternative lenders or online funders.
Get the Funding You Need to Grow
Here's the truth: finding funding can be tough—especially if you're starting out or don't have a good credit score. But with the right financing partner, your retail business can thrive.
At One Park Financial, we specialize in helping small business owners access working capital quickly. If your business has:
At least three months of operating history
Monthly revenue of $7,500 or more
Then, you may already qualify for funding—regardless of your credit score.
Get pre-qualified in minutes by filling out our online form. Let's help you grow your business with funding tailored to your goals.
Disclaimer: The content of this post has been prepared for informational purposes only. It is not intended to provide and should not be relied on for tax, legal, or accounting advice. Consult with your tax, legal, and accounting advisor before engaging in any transaction.