Your new business needs cash to run — plain and simple. But what’s not so simple is figuring out all your possible financing options.
If you’re unsure about which retail business loans you qualify for, you’re not alone. And even if you do understand the basics, going through the application process and comparing lenders can feel overwhelming.
This article outlines common loan types and popular, highly-rated lenders for 2025 so you can determine the best financial path forward.
A retail business loan is a type of financing designed to support the specific needs of businesses that sell goods directly to customers. In other words, they help business owners cover any necessary expenses and investments.
Common uses for retail business loans include:
Some retail loans offer flexible repayment options based on seasonal sales patterns, which can help with cash flow during slower months. Certain financing options also include access to working capital advances tied to your credit card sales to get funds faster.
While the application process itself looks different depending on the type of loan and lender, there are some general steps and documents you’ll need to prepare.
Here’s an outline of the loan application process:
Note that different loan types may have extra steps. For example, SBA loans require more paperwork and longer approval times, while merchant cash advances may have faster but costlier approval processes.
Related Read: The Ultimate Business Plan Checklist for New Retail Stores [+ a Downloadable Checklist!]
Retail businesses can choose from a variety of loan types, each designed to meet different financial needs and situations. This section breaks down the most common loan types, what they offer, and what to expect during the application process.
The SBA offers loan programs to help small businesses get affordable financing backed by the federal government. SBA loans often come with lower interest rates and longer repayment terms than conventional financing, making them attractive to retail businesses.
To qualify, however, you must meet specific requirements such as a strong credit profile, robust business plan, and collateral.
Common SBA loan types include:
Next steps: If SBA loans sound like a fit, start by checking your eligibility on SBA’s website or with participating lenders. Prepare financial documents, a business plan, and tax returns. You can also consult a loan officer or a small business advisor to help navigate the requirements.
Related Read: 4 Tips To Become a Successful Small Business Owner
Term loans provide a lump sum of money upfront, which you repay in fixed monthly installments over a set period, typically ranging from one to five years. They can be either secured, requiring collateral such as business assets, or unsecured, which usually have higher interest rates and stricter credit requirements.
Retailers can use term loans for planned investments like buying equipment, expanding inventory, or funding renovations.
Some important notes about term loans:
Next steps: Start by gathering recent financial statements, credit reports, and business documentation. Shop around to compare rates and terms. If you’re new to term loans, make sure to ask lenders about repayment penalties and fees before signing.
A business line of credit offers revolving access to funds up to a set limit, with interest charged only on what you draw. It’s an ideal retail business loan option for managing seasonal inventory purchases, covering payroll gaps, or handling unexpected costs.
Funds are typically quickly accessible, making it more versatile than a traditional lump-sum loan.
Important notes about lines of credit:
Next steps: Gather recent bank statements, financial history, and projected cash flow. Compare offers from banks and online lenders to find the best rate and flexibility. If your application hinges on revenue consistency, bring six to 12 months of sales records.
If you need to purchase a specific piece of machinery or tools, equipment financing might be a suitable option, where the asset acts as collateral. This financing option lets you spread payments out over time and usually comes with fixed repayment schedules tied directly to the equipment’s lifecycle.
At the end of the term limit, some lenders accept a balloon payment (with the cost ultimately depending on the original loan amount) for complete equipment ownership.
Important notes about equipment loans:
Next steps: List needed equipment with price quotes and expected usage durations, then approach lenders and ask specifically about equipment financing. Keep your credit history and financial statements ready to present as needed.
Inventory financing uses your unsold stock as collateral to borrow funds, typically up to 80% of its wholesale value. It gives you flexible access to payment upfront and helps maintain cash flow when replenishing inventory. Repayment usually occurs when the stock sells.
Important notes about inventory loans:
Next steps: Prepare inventory lists with cost and current turnover rates before speaking with lenders, ideally those familiar with your industry. Project future inventory needs and consider how repayment aligns with your sales cycle.
Most popular for short-term financial needs, merchant cash advances give an upfront lump sum repaid through a percentage of daily credit card transactions. It’s a fast alternative for retailers with strong card-based sales, but it might be more expensive than standard financing.
Important notes about merchant advances:
Next steps: Analyze your card sales volume to estimate feasible repayment amounts. Then, request quotes from multiple providers and run APR comparisons. You also need a clear picture of how you’ll use the funds and how quickly sales will replenish your cash balance.
Personal loans and business credit cards can help fund your business in its earliest stages or when other lenders deny traditional financing. But remember that personal credit carries your liability, not your business’.
Generally, you should only use a personal loan if traditional business funding isn’t accessible and repayment terms align with your future earnings.
Important notes about personal loans and business cards:
Next steps: Review relevant credit card offers with low APR or introductory periods, and update your bookkeeping system to treat card expenses as business transactions.
| Loan Type | Best For | Pros | Cons |
| SBA Loans | • Established retailers • Asset purchases • Startups (microloans) |
✔ Lower interest rates ✔ Longer terms ✔ Government-backed |
✗ Lengthy approval ✗ Strict qualifications |
| Term Loans | • Planned investments • Equipment purchase • Business expansion |
✔ Fixed payments ✔ Larger loan amounts possible |
✗ May require collateral ✗ Less flexible once started |
| Business Lines of Credit | • Managing cash flow • Seasonal or unexpected expenses |
✔ Flexible borrowing ✔ Interest only on funds used |
✗ Variable rates ✗ Temptation to overspend |
| Equipment Financing | • Buying or leasing business equipment | ✔ Lower interest rates ✔ Matches equipment lifespan ✔ Possible (eventual) ownership |
✗ Equipment repossession risk ✗ Strong credit needed |
| Inventory Financing | • Seasonal stock buildup • Short-term borrowing |
✔ Quick access to funds ✔ Preserves cash reserves |
✗ Loan limited by inventory value ✗ Inventory risk |
| Merchant Cash Advances | • Businesses with steady card sales needing quick cash | ✔ Fast access ✔ Easy qualification |
✗ Very high cost ✗ Can strain cash flow |
| Personal Loans & Business Credit Cards | • Small expenses • Emergencies • Building credit |
✔ Quick access ✔ Rewards programs (cards) |
✗ Risk personal credit ✗ High interest rates |
When your retail business needs funding, knowing all your lender options matters.
This list breaks down the top retail business loan providers in 2025, including approval speeds, qualifications, and terms, so you can select the lender that best fits your goals and timeline.
1West connects small and mid-size businesses to a network of over 50 lenders using their Automated Business Lending Engine (ABLE). After creating an account and picking your loan type, you can get competitive offers — often within 24 hours.
Once approved, funds can arrive as soon as two business days later.
Qualification criteria:
With a 93% approval rate and a quick, two-minute application, 1West is a strong match for retailers who want fast access to multiple loan options. If speed is your top priority, start by selecting your preferred loan type and comparing lender offers to find terms that match your timeline and repayment goals.
BlueVine offers business lines of credit up to $250,000 and term loans up to $500,000 through direct financing and lending partners.
Their line of credit renews as you repay, while term loans provide lump sums with fixed monthly payments and terms up to 24 months. Applications take only minutes, with offers reviewed within 24 hours.
Qualification criteria:
If you're managing seasonal sales or need cash on hand for frequent inventory purchases, BlueVine’s revolving credit line can be especially helpful. Look closely at how your credit usage affects your available balance — and if you’re leaning toward a term loan, check whether early payoff impacts your total cost.
Related Read: How To Manage a Retail Store: 6 Steps to Success
Fora Financial offers working capital loans up to $1.5 million, with funding available in as little as 24 hours. Their products include small business loans, revenue advances based on gross receipts, lines of credit, and SBA loans. Approval decisions usually come within four hours.
Qualification criteria:
Retailers with unpredictable cash flow can benefit from Fora’s revenue-based repayment options. If your sales fluctuate month to month, ask about the repayment structure upfront so you know how payments will adjust and how much working capital you’ll actually be able to access.
OnDeck specializes in short-term loans and lines of credit for small businesses. Loan amounts range up to $250,000, with funds arriving as soon as the next business day after approval. The straightforward application process and quick turnaround time makes OnDeck a solid choice for retailers needing quick cash.
Qualification criteria:
OnDeck’s short-term loans can help out with inventory purchases or unexpected costs. If you’ve borrowed before, ask how repeat borrower perks (like better rates or higher limits) apply, especially if you plan to use OnDeck more than once.
Fundbox offers business lines of credit up to $150,000 with quick approval based mainly on your business’ invoicing and payment history. You can access funds within 24 hours after approval, with repayment terms up to 24 weeks.
Qualification criteria:
If you have consistent income and can quickly pay off balances, Fundbox’s 12- to 24-week repayment periods may work in your favor. Just compare draw fees and interest costs if you plan to borrow frequently.
Kiva is a nonprofit that helps underserved entrepreneurs access 0% interest microloans up to $15,000 through a community crowdfunding model. After applying, you’ll raise a portion of your loan from your own network to demonstrate trust and support. Once complete, Kiva opens your campaign to its global lender community.
Qualification criteria:
Kiva is a strong option for retailers who can rally local support and need smaller funding amounts for their business. Expect the process to take longer than traditional loans, but the 0% interest and no-fee terms can make it worth the effort.
Lendio is a small business loan marketplace that lets you compare offers from over 75 lenders with one quick application. They’ll match you with relevant offers like term loans, equipment financing, lines of credit, and SBA loans — often in under 24 hours. There’s no obligation to accept an offer, and applying doesn’t affect your credit score.
Qualification criteria:
Lendio is ideal for retailers who want to see multiple loan options before committing. After submitting your application, your Lendio funding manager can help you compare offers and answer lender-specific questions so you don’t waste time applying individually.
Loan offers can look similar on the surface, but the fine print is always the most important. Repayment terms, fees, and eligibility requirements vary widely, so carefully review all of your options before committing.
Once you've got capital lined up, the next step is putting it to work efficiently. An industry-specific point of sale (POS) system helps you do just that by better managing inventory, sales, and reporting — all without added stress.
Schedule your free, personalized demo with POS Nation today to see how the right system supports your long-term success.