Liquor retailing is a business that has a steady desire throughout the year. If your store is in a good location, you will have a constant stream of customers. West Vail Liquor Mart You are sure to do brisk business if you stock a wide range of products and build a reputation in the area where you operate.
Unless you plan to put your own money into the business, you will have to apply for liquor store financing for purchasing a suitable store as well as for stocking it with an adequate volume of inventory.
SBA financing – The U.S. Small Business Administration (SBA) is possibly the best source for meeting the entire range of requirements for liquor store financing.
The flagship 7(a) loan program can be used for several purposes, including purchasing real estate, furniture and fixtures, and even for establishing a new business. Money sourced through this program can also be utilized to buy inventory.
The other major SBA loan program is the CDC/504. Its use is restricted to purchasing real estate and equipment.
Whichever SBA loan you opt for, you can be assured that you will pay the lowest rate of interest and also enjoy an extended repayment period.
But these loans do have several downsides. It is very difficult to meet the credit criteria that the SBA stipulates. Additionally, you would need to wait many weeks for an approval.
Bank loans – A bank loan could also be a good source to meet your liquor store financing needs. These traditional commercial lenders charge reasonable rates of interest, a factor that would enhance your cash flows and help you run a successful business.
Unfortunately, banks consider liquor store financing to be a high-risk area. Unless you are able to provide adequate collateral, you would find it difficult to get funding from this source.
It is also likely that you would have to furnish a personal guarantee, along with a list of the assets that you own. In the event that you default on your bank loan, there is a likelihood that you could lose your home because of the guarantee that you have provided.
Alternative lenders – There are a number of marketplace lenders that are open to advancing money for the purpose of liquor store financing.