If you own a retail business, I am pretty sure you know how your sales can (and will) explode during the holiday season. The number of retail stores that participate in “Black Friday” sales and promotions are proof of that. Chances are your sales are going to skyrocket during the months of November and December and even slightly after the new year. If you’re pretty confident that’s going to happen, now is the time you may want to consider applying for small business funding.
Why You Should Consider Applying for Small Business Funding Now
The number of potential credit card transactions that will take place during November, December, and January is the primary reason you should consider applying for small business funding now. You have a great chance of experiencing a significant increase in revenue during those months. Most lenders will ask to see the last 6 months of your bank statements when applying for small business funding. Let’s say in August, September, and October you had decent sales, however your sales begin to explode during the following months (November, December, and January), lenders are going to notice the huge increase in revenue and be more inclined approve your small business funding request.
What Type of Small Business Funding Should You Apply for?
Here at LenCred, we are experts in unsecured business credit. Normally we suggest that retail business owners apply for unsecured business credit, especially when their business is generating significant revenue and the owner(s) have a good personal credit history, (a personal guarantee is required to be approved). In this case, unsecured business credit would always be our first recommendation.
However, if you don’t have a good personal credit history, we would recommend a merchant cash advance for your business. Merchant cash advance lenders don’t have high credit score requirements (like unsecured business credit lenders) rather, they focus more on the amount of daily credit card transactions and/or deposits your retail business has. If your retail business sales explode during the holidays, now is the time to apply for a merchant cash advance. If business slows done in the months after the holidays are over, chances are you won’t have this opportunity again until the next holiday season.
LenCred’s Expert Can Help You Get Small Business Funding
If you’re convinced that now is the time for you to apply for small business funding, the experts here at LenCred can help you determine whether unsecured business credit or merchant cash advances are right for your retail business. Contact us today to get started.