GrowMap

Map Your Path To Grow Your Business

  • Home
  • About
  • Contact
  • G.A.S.P
  • Press
  • Portfolio
  • GrowMap Services
  • PostsComments

The Best Way to Fund a Small Retail Business

June 14, 2013 By Shaun Thomas 19 Comments

20 Ways to Fund Your Small Business
Image Credit: BusinessLowCost.com ~ Click image to read related post

Without a doubt, the best way to fund small businesses is through your own private investment or non-repayable grant funding. Putting your own money into the business means you don’t need to answer to anyone and you are free to make decisions good or bad. Non-repayable grant funding is obviously cheaper and carries less risk than investing your savings so if you have the time to enter into a lengthy grant application process, you could benefit from much lower costs and a risk free venture.

Table of Contents

  • Funding a Retail Business after the Start Up
  • Social Lending Hits an All Time High
  • Social Investors Want to Help
  • Peer to Peer Lending
  • Alternative Lending Sources
    • Shaun Thomas
    • Latest posts by Shaun Thomas (see all)

Funding a Retail Business after the Start Up

Many grants exist for business concepts and businesses that are new and have no record of success or failure, but they are often restricted to certain industries. The UK grant system seems to have a phobia for retail businesses, which is not good news for anyone who wants to breathe life back into our high streets. For some reason, retail outlets are seen as high-risk ventures and bad use of grant money. This often means retailers need to get their business off the ground with minimum assistance and you can practically forget about borrowing from a bank unless you can afford the repayments without depending on your business for revenue.

Social Lending Hits an All Time High

Social lending has been around for a long time with Credit Unions being the best-known sources for funds for local businesses trying to get off the ground. Credit Unions are very similar to banks on the surface, but they have some fundamental differences. Credit unions are run on a not for profit basis because the money borrowed from the union originates from the deposits of people who are savers. You need to have been a member with a record of saving In order to borrow from a credit union and this is not ideal if you need a loan in the name of your business.

Social Investors Want to Help

Crowd funders have been helping businesses grow for a many years now, but the difficulties facing businesses trying to obtain low cost bank loans has encourage more and more businesses owners to look to peers for their investment needs. Websites like CrowdCube and kickstarter are funding everything from market stalls through to movies and there is a great deal of buzz around crowd funding. But the most successful businesses born out of the idea are those with mentoring built into the deal. Sites like Crowdit are realising the need for people with great ideas or products to have more than just money if they are going to make it as a business.

Peer to Peer Lending

P2P lending is really beginning to take off and it’s similar to crowd funding because it’s people like you and I who are lending the money to businesses. Business owners and finance managers review offers from many different lenders and they can choose which is cheapest or offers the best repayment terms to help push their businesses to where they need to be.

Alternative Lending Sources

Retailers are able to borrow from certain lenders when they are growing. Some banks offer cash advances based on the amount of revenue the business generates with card sales each month. One source for such loans is Business Loans Direct.

The advantage of having a business cash advance instead of a loan is that loans have fixed repayments each month, whereas a business cash advance only requires a fixed percentage of card sales. That means good months bring the outstanding balance down faster and there is no pressure to find enough revenue to make payments when the business has lower than expected sales figures.

The following two tabs change content below.
  • Bio
  • Latest Posts
My Google+ profile

Shaun Thomas

Shaun Thomas is a former financial advisors and a current director of a retail business and a digital marketing business and has successfully secured funding for both.
My Google+ profile

Latest posts by Shaun Thomas (see all)

  • How to Improve Social Signals for Website Ranking - July 7, 2013
  • The Best Way to Fund a Small Retail Business - June 14, 2013
Tweet35
Share3
Share3
Pin2
Share
Share
Pocket
Flip
43 Shares
« A Starters’ Guide to Taking Your Business Online
Do You Own Your Content? MySpace Pulls a StumbleUpon ~ Big #FAIL »

Filed Under: Small Business Advice Tagged With: ecommerce funding, retail business funding, small business, small business funding

Comments

  1. MURPHY says

    December 16, 2016 at 10:16 pm

    Shaun nice share. Small business funding management is important. To provide the best funding supports in all small business purposes I believe this post provided information will be highly effective. Thanks for a good contribution.

    Reply
  2. Brian says

    November 4, 2016 at 9:03 am

    Good advice. Funding a business is one of the first questions you need to answer and so it’s important to understand all the ways you can do that. Thanks for sharing!

    Reply
  3. Nancy says

    April 18, 2016 at 2:38 pm

    If you are looking for a business loan, you need to spend time carrying out a little research, as there are different types of loan on offer from a host of providers. 

    Reply
  4. Mitch Carson says

    February 4, 2014 at 1:17 am

    Great Article. People will gained so much knowledge because of this! Thank You so much for sharing all these valuable Information.

    Reply
  5. Jane John says

    January 23, 2014 at 5:14 am

    I want to say that this is one of the best alternative ways to get financing for any small business including retail, motels or hotels
    Jane John would love you to read ..Secured & Unsecured Business LoanMy Profile

    Reply
  6. diana lynnwood says

    June 18, 2013 at 6:20 am

    Well for making an investment double you need to research on every thing. You need to focus on your business area before starting something same like other think if you can partnership with him you can save money time and your efforts but than there is an other problem the problem of trust but if you have everything legal than you have no issue and you can bring more business at one place and get better profit.
    diana lynnwood would love you to read ..Boiler Service & RepairMy Profile

    Reply
  7. Charles says

    June 17, 2013 at 12:00 pm

    yeah, peer to peer funding really works,,,thanks for sharing other awesome ways to het funding for small business

    Reply
  8. Ansh says

    June 16, 2013 at 2:05 pm

    Absolute informative post for anyone in retail business. Thnx
    Ansh would love you to read ..How To Speed Up WordPress Site: 16 Easy TipsMy Profile

    Reply
  9. alex says

    June 16, 2013 at 2:46 pm

    i have a small business,but i am trying to make it bigger,so a lot of work still to do no it

    Reply
  10. harshi says

    June 16, 2013 at 8:14 am

    Well this is another very intresting post ! i really love this blgo and this post get me to thingagain on insvesting on my business ! hard luck i dont have money 🙁

    Reply
  11. Hamza Sheikh says

    June 15, 2013 at 1:58 pm

    Amazing to focus on! I have been trying to start some retail work online from last couple of weeks, and every time I try to take a start new thing comes up in my dashboard that prevents me to take a start. You have shared an amazing valuable information here.
    Hamza Sheikh would love you to read ..Untethered iOS 7 Jailbreak for iPhone & iPad Devices In WorkMy Profile

    Reply
  12. himanshu says

    June 15, 2013 at 11:53 am

    Yeah man i agree with you that business cash advance helps you to make your to easily start up your business and to make trust on banks by showing them necessary sales. And also it is a better method than taking loans for your business.

    Reply
  13. Houston movers says

    June 15, 2013 at 9:18 am

    Nice article, I got to say that the first one is my favorite, work hard save some cash and invest your own money, if you cant afford it maybe better not to get in to it at all.

    Reply
    • Spanish homes says

      June 15, 2013 at 3:34 pm

      fully agree. the first options allows to reduced risks and gives independence!

      Reply
  14. Gurwinder Singh Bhinder says

    June 15, 2013 at 3:26 am

    Nice article, those were some of the best ways of small business funding, Thanks for sharing 🙂

    Reply
    • Shaun Thomas says

      June 15, 2013 at 4:20 am

      Thanks Gurwinder, I’m glad you found it useful.

      Reply
  15. Pramod says

    June 15, 2013 at 5:39 am

    Great post mate ! This article would be very useful for people would be starting a retail business .. People here in India , mostly takes loan from their relatives to start a new business (If they don’t have the money) ..Thanks for sharing this information

    Regards,
    Pramod

    Reply
    • Shaun Thomas says

      June 15, 2013 at 8:42 am

      Thanks Pramod,

      I’m glad it helps some people even if it’s not quite relevant to everyone.

      Reply
  16. alex says

    June 14, 2013 at 8:39 pm

    thankyou for this super article,i am going to open up a business online soon and this information as been very good for me,thankyou

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

CommentLuv badgeShow more posts
You can add a link to follow you on twitter if you put your username in this box.
Only needs to be added once (unless you change your username). No http or @

Search

UPC CODES don't fall for fakes

Categories

Recent Posts

  • 10 Motivational Podcasts for the Modern Salesperson
  • 4 Ways To Improve Your Email Marketing Campaigns
  • What You Need to Think About When Building Your WordPress Site
  • The Importance of Relaxation When Starting a New Company
  • Stay Afloat: Reduce Monthly Expenses Using These Tips
Don't Miss Your Path to Growth!
Enter your email to receive new
blog posts:

Did MOZ Drop Your Site’s DA?

https://www.youtube.com/watch?v=Iv_cL50MpZA

Popular Posts

4 Ways To Improve Your Email Marketing Campaigns4 Ways To Improve Your Email Marketing Campaigns
10 Motivational Podcasts for the Modern Salesperson10 Motivational Podcasts for the Modern Salesperson

Greatest eCommerce Competitive Risks to Small Businesses

https://www.youtube.com/watch?reload=9&v=bmlJmDYaax0

Serpstat: What it Does

https://youtu.be/rjIfKdIWk7M

GrowMap Policies

  • Disclosure Policy
  • Privacy Policy
  • GrowMap Guest Blogging Guidelines

Connect With Growmap

growmap on twitter growmap on g plus growmap on linkedin growmap on pinterest growmap on facebook growmap on stumbleupon growmap on skype

Copyright © 2008-2021 Growmap · Centric Mobile Responsive Theme by StudioPress · Genesis Framework · Site maintaned By MarketingTilt

We are using cookies to give you the best experience on our website.

You can find out more about which cookies we are using or switch them off in settings.

GrowMap
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.

You can adjust all of your cookie settings by navigating the tabs on the left hand side. Read our complete privacy policy.

Strictly Necessary Cookies

Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.

If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.