Financing for retail
Retailers carry inventory ahead of busy seasons and invest in fit-outs, fixtures and point-of-sale systems.
Key points
- Retailers carry inventory ahead of their busiest seasons.
- Store fit-outs and point-of-sale systems are common reasons to borrow.
- Daily sales data gives lenders a clear view of your business.
- Lease terms matter when you’re financing leasehold improvements.
How financing works in retail
Retail businesses live by the season. You buy stock months before you sell it, invest in your store’s look and systems, and often earn a large share of the year’s revenue in a few busy weeks.
Financing helps you stock up with confidence, renovate or open new locations, and keep cash available for the quieter months.
Common financing needs
Here’s how businesses in this industry typically match their needs to the right kind of financing.
| What you need | Usually the best fit | Why |
|---|---|---|
| Inventory ahead of busy seasons | Lines of credit | Draw for the build-up, repay as the stock sells |
| Renovate or open a store | Term loans | A lump sum for fit-outs and opening costs |
| Point-of-sale and fixtures | Equipment financing | Systems, displays and equipment financed over their life |
| Buy an existing store | Business acquisition | Take over an established location and its customers |
How NorthMerit can help
Apply once and we’ll connect you with one financing partner who works with businesses like yours. It’s free, and there’s no obligation.
What lenders look at
Lenders look at your sales trend, gross margin, inventory turnover and lease terms. Online sales alongside a physical store can strengthen your application by showing more than one channel.
For new locations, lenders want to understand why the location will work and how quickly it will reach break-even.
Other things partners commonly ask about: seasonal inventory build-ups; store openings and renovations; point-of-sale and equipment upgrades.
Stocking up for the holidays
A gift retailer draws $90,000 in October to stock for the holidays and repays it by January.
How to prepare
Have 12 months of sales reports, recent financial statements, an inventory summary and your lease ready. For a new store, include your plan and cost estimates.
Common questions
Is NorthMerit a lender?
Does it cost anything to apply?
Who will contact me?
Other industries
- Construction and trades
- Transportation and logistics
- Manufacturing
- Wholesale and distribution
- Restaurants and hospitality
- Health care and clinics
- Agriculture
- Professional services
- E-commerce
- Technology and software
- Automotive
- Real estate and property
- Energy and natural resources
- Fitness and personal care
- Franchises
The right financing, from the right partner.
Apply once. One financing partner who knows businesses like yours. Free, with no obligation.
