Alternative Lending Solutions for Financing Retail Store Owners with Poor Credit Scores


Many great businesses, retail chains today, have once started as small retail enterprises that are really good with a limited working capital and quality of services excelling to achieve better financing option and have grown immensely over a short span of time. As a retail business owner, the primary focus is on providing superior inventory and customer service to the customers who are patrons. Unique marketing concept of setting up in a good location, aggressive marketing efforts goes a long way in establishing the business and lenders happy as they are aware of their investment in this venture is turning profitable.

Why Poor Credit Score?

Small business owners do not have the ability to get funding from the banks although they are very likely to pay back the loan, most of the times the reason for the poor credit score are likely to be:

  • The small business financing has a high level of ambiguity surrounded which is why they are classified as high-risk borrower

  • Credit reports determine the creditability of the borrowers, if there is a lack of past diligence in packing back the debts, there could be a rejection while applying for a loan.

  • Always measuring the cash flow is the first thing which lenders gauge to find out about the financial health, any insufficiency in the cash flow, deters Banks to consider financing options.

  • Planning the future, a definite quantitative business plan is a must in prospering into the financial world, and sticking to it, is extremely important. Small businesses may not have a concrete plan, can, however, forecast their earnings and articulate well on how they can achieve it, for lenders to understand the worthiness of the business.

  • Being organized is the key to successful business owners, getting all the documentation and paperwork is a must to obtain Bank loans. Unorganized and incomplete documentation is another big negative for businesses.

  • Failing to get financial advice when it is most important is yet another factor to head for a poor credit score, meeting working capital requirements, various ways for business funding, improving the business strategies are all advice provided by financial experts, who can really improve the business prospects.

Financing options for retailers with bad credit

Retail businesses have taken a hit on their credit history in recent years as they may have bad credit, which makes it challenging for them to obtain credit, however, it is not the end of the road, the journey is endless and so are the options of funding:

  • Asset-based financing – 1


    funding option


    are considered to be one of the best viable options available, for retailers having a poor credit score, which is impeding them from taking the loan approval for conventional businesses. Assets used as collateral security to obtain business funding. Commercial, personal real estate’s are considered to be security to obtain the asset-based financing. The rates vary between 10% -25 %, funding amounts range from $50,000- $5,000,000 with a minimum fee to process the application.

  • Short-term Business Loan,-2



    option works well as an alternative funding solution for a short-term when banks require a good credit for loan approval, this, however, is just like a stop-gap solution, where the rates of interest vary from 8% - 25%, with funding amounts between $ 50K to 500K. Collateral security and medium fees could be applicable in case of banks request for the same.

  • Commercial Real Estate Loans 3


    funding option

    is another option to finance the small businesses when commercial real estate with equity can be tapped to obtain, leveraging 90 % of the of the loan value. The rates of interest are between 5%- 15%, with amounts ranging from $250,000- $50,000,000, furnishing collateral security.

  • Merchant Cash Advances- 4




    one can pay a portion of the sales from credit and debit card in exchange for a cash advance, which has a typical factor rate between 1.2 to 1.5 times, from where the cost of advance is calculated. The Cost is determined by multiplying the factoring rate with the amount of advance required to fund the business, with no collateral, however, a small portion of cost has to be set aside for the fees which the lender may insist to pay for other expenses according to the loan terms.

  • Credit Partners-5


    position- this option can be used to seek a credit partner who has a good credit, so that they can make this business qualify for the line, of credit for the business, which may involve sharing a part of the business to be financed.

How can we help in funding your business with poor credit?

Hunting for a business loan is a tedious task; however, options have been coming out for those who have no way to approach the bank for a loan to fund their small business. Shield funding has huge potential, for business owners who generate consistent revenue, regardless of the profit or loss, are eligible to apply for a loan. If you are looking for a loan, and have a bad credit, we will help you in understanding the options available, and guide you to secure the right loan for your company.

Even if one has been denied loan recently can apply and take the funding opportunity with us. There are many issues for banks to classify the small business as risky, however, we do help in shield financing for poor scorers, with bad credit and high-risk business for a long term with tenure of nearly 10 years with a minimal amount of fees.

Securing a loan through online lenders is a boon in disguise, our services for those looking for funding their new start-up enterprises that may have past poor credit history, as obtaining a secured loan from banks is very limited this option of funding your requirements is viable. Benefits of approaching us online:

  • The forms to fill up are not cumbersome, but simple and short applications.

  • Our dedicated team of work faster than the banks,

  • The number of options to finance the requirements vary, according to loan amount required,

  • The fees charged by us, maybe a little higher than compared to the banks, however, the quality of service for financing the high-risk business is worth the money spent.

Just because a retailer has a poor Fico score, it does not mean there are no options to fund small businesses. We have cited the above options including gifts and grants are highly competitive for the low-income running area, business loans. Microloans serve a short-term purpose as the limit of lending is up to $13K, which is quite an amount for very small business in addition to small business administration loan program where the grants could go as high as $50,000.Both the loans when clubbed together give the required boost to the business to run successfully. With the financing option, we provide the credit score can make, move in the right direction for the successful business enterprise.

Allowing the inflow of finance with our funding solution, and using it wisely to improvise the creditworthiness of your business in top priority, makes financing in the future is easier.

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