Small Business Lending Tools

Home / Business / Small Business Lending Tools


As the holiday season approaches, the opportunity is ripe for retailers and e-tailers to experience monumental growth. According to the National Retail Foundation, consumers are expected to spend an expected $655.8 billion in November and December in traditional retail sectors. They also report that online sales are expected to reach as much as $117 billion during the holiday season.

Don’t wait to get your piece of this pie. There are several ways you can attract more customers to your store or website. Increasing your available inventory by stocking up on the hot holiday items before they sell out from suppliers is key. Focused advertising is another method of bringing more foot or web traffic to your location. Unfortunately, both of these methods require readily available capital to implement.

Getting Credit

Small Business Lending Tools

Thankfully, there is a way for business owners to access an easy line of credit to invest in themselves and their business. Small business loans are an easy way to get traditional business loans or lines of credit to be used for inventory or renovations. However, if you’re a small e-tailer, qualifying for a traditional small business loan is difficult, especially with traditional banks. And if you’re a small shop just starting out, establishing a line of credit can be daunting. As reported by Forbes, the FDIC also shows that loans to businesses that have less than $1 million principal are on the decline.

There is a distinct lending gap caused by a disconnect between traditional banks and the new models of retail. So, whether you’re looking for funds to build your bottom line or to increase your saleable inventory, you need to find other options. Don’t think that as a business owner, you are restricted to banks for lending. Online vendors, such as Dealstruck, are safe and reliable alternatives that work with you to create a lending package that suits your specific needs.

Interest Rate Questions You Need To Ask

When shopping for alternative methods of lending, business owners are best served by looking for lenders that are willing to quote their interest rates in terms of Annual Percentage Rate (APR), not buy rates, not cost per dollar, not Annual Interest Rates, or any other variation of that theme.

Buy rates may look simple but can balloon quickly when amortized. For example, a buy rate of 1.3 on a $10,000 loan may look like a 30% interest rate. However, depending on the length of repayment, the interest rate skyrockets up to 360% of the original loan. The only way to be sure what you will be paying in interest and to compare rates is to get an up-front APR quote.

One important question to ask of your small lender is if the loan is fully amortized. That means that you are paying off principle and interest with each payment. This guarantees that at the end of the term, you will have paid off the entire loan. You should also ask if the interest is a lump sum. If the interest is not considered a lump sum, you could pay off the full principle early to avoid paying the excess interest. 

Whether you are involved in eCommerce or a traditional brick and mortar store, your ability to access affordable and reliable capital is important. If you are having problems bridging the lending gap, an online lender can provide a vital lifeline to your business. Don’t let anything stand in the way of your business growth; get the capital you need when you need it today.

Related Posts