1. Understanding Equipment Financing
   • What is Equipment Leasing?
   • What are Equipment Loans?
2. Leasing vs. Loans: A Comparative Analysis
   • Cash Flow
   • Tax Implications
   • Ownership Goals
3. Financial Implications and Tax Benefits
4. Choosing the Right Option for Your Business
   • Assessing Business Needs
   • Evaluating Financial Well-being
   • Long-Term Goals and Objectives
5. Future Trends in Equipment Financing
   • Emerging Trends
   • Streamlining Processes
   • Facilitating Faster Approvals
   • Lowering Costs
   • Enhancing Customer Experiences
   • Improved Efficiency
   • Enhanced Risk Management

In the ever-evolving landscape of business, the acquisition of new equipment stands as a crucial pillar for growth and operational efficiency. Whether you’re a small startup seeking small business equipment leasing or an established enterprise, the need for updated machinery, tools, or technology is constant.

However, procuring such equipment often necessitates substantial financial investment, prompting businesses to explore various financing options. Among these, leasing and loans emerge as primary contenders.

Understanding Equipment Financing

Venturing into the realm of business equipment financing unveils a path where businesses secure funds tailored explicitly for the acquisition of essential assets. This avenue liberates enterprises from immediate upfront payments, thereby safeguarding their capital leasing for other operational exigencies.

What is Equipment Leasing?

What is leasing in a business? Equipment leasing emerges as a compelling option, entailing the temporary acquisition of equipment from a lessor for a predetermined duration, typically accompanied by fixed monthly disbursements.

This avenue involves two primary incarnations: operating leases and finance leases. Operating leases offer a flexible framework, while finance leases bestow a semblance of ownership through fixed terms.

What are Equipment Loans?

Equipment loans materialize as specialized financial vessels tailored explicitly for equipment acquisition.

Diverging from conventional loans, these financial instruments utilize the acquired equipment itself as collateral, thereby mitigating risks for lenders and furnishing borrowers with advantageous terms.

Leasing vs. Loans: A Comparative Analysis

Evaluating leasing and loans necessitates delving into cash flow management, tax implications, and ownership aspirations.

Cash Flow

Leasing offers an array of benefits including curtailed initial costs, leeway for equipment upgrades, and the convenience of inclusive maintenance.

In contrast, loans beckon long-term ownership benefits, albeit necessitating an initial capital lease vs loan outlay.

Tax Implications

Tax implications within the realm of leasing go beyond lease payments into tax-deductible outflows, whereas loans offer depreciation deductions and interest expense deductions.

The decision between the two hinges precariously on the business’s tax strategy and financial predilections.

Ownership Goals

Ownership goals are essential, with businesses nurturing long-term ownership aspirations and asset appreciation gravitating towards loans.

Financial Implications and Tax Benefits

Equipment financing demands a grasp of the choice between leasing and loan acquisition. Unveiling these decisions upon cash flow dynamics, profitability margins, and fiscal obligations is imperative for enterprises navigating financial management.

For Canadian enterprises venturing into the realm of financial leases and equipment financing, it's essential to understand tax regulations. Considerations such as Capital Cost Allowance (CCA) and the implications of Goods and Services Tax/Harmonized Sales Tax (GST/HST) influence the decision-making process.

Meanwhile, the juxtaposition of Canada’s CCA norms and the US Section 179 deduction for equipment acquisitions demand navigation, as enterprises strive to extract maximum tax dividends while treading the narrow line of regulatory compliance.

Choosing the Right Option for Your Business

Choosing between equipment leasing and loans requires a meticulous examination of a variety of facets.

Assessing Business Needs

Familiarizing yourself with your commercial loan and equipment requirements stands as the cornerstone of the decision-making process. From restaurant equipment financing to medical equipment financing, investigate equipment specifications, usage dynamics, and durability thresholds to discern the most fitting financial avenue.

Evaluating Financial Well-being

Gain an understanding of the intricacies of cash flow dynamics, creditworthiness, and financial forecasts to gauge the feasibility of equipment financing alternatives.

While leasing might offer respite for enterprises grappling with immediate capital leasing company constraints, loans entice with the allure of enduring cost-effectiveness.

Long-Term Goals and Objectives

Reflect on strategic ambitions encompassing operational expansion, efficiency optimizations, and competitive prowess. Whether seeking ownership or navigating the currents of flexibility, your chosen financial avenue must resonate with your long-term aspirations for sustainable growth.

Future Trends in Equipment Financing

To understand your equipment financing needs, it's important to examine relevant financial trends and safeguard your competitive edge in the swiftly evolving realm of equipment financing.

Emerging Trends

Emerging digital platforms in the financial industry work to connect borrowers with an array of lenders, thereby fostering an environment where loan applications can prosper.

Streamlining Processes

Automated workflows and electronic documents allow users to navigate loan applications, credit assessments regarding equipment loans for bad credit, and approval protocols, culminating in reduced turnaround times and heightened operational efficiency both for borrowers and lenders alike.

Facilitating Faster Approvals

AI-fueled credit scoring algorithms expedite lending decisions, empowering lenders to navigate borrower data in real time with unwavering confidence.

Lowering Costs

By relegating manual labour and harmonizing operations, fintech paves the path for lenders to acquire cost-effective financing alternatives with enticing terms and conditions, rendering equipment acquisition a feasible endeavour for businesses.

Enhancing Customer Experiences

Digital platforms influence customer empowerment for company business loans, endowing borrowers with intuitive interfaces and self-service functionalities. From loan application submissions to real-time application tracking, borrowers traverse a landscape rife with convenience and transparency.

Improved Efficiency

Automation and digitization invigorate operational efficiency across the equipment financing spectrum. Businesses witness expedited equipment acquisitions, streamlined administrative overheads, and a focus on core activities fostering growth and profitability.

Enhanced Risk Management

By harnessing the power of blockchain-based solutions, lenders fortify their defences against non-performing loans, bolstering the quality of their loan portfolios. Enhanced risk management capabilities furnish lenders with the confidence to extend more competitive financing propositions, emboldened by technological innovation.

Ultimately, in the dynamic landscape of business, financing planning decisions play a pivotal role in shaping growth and sustainability. Choosing between leasing and loans for types of equipment leases and their equipment lease rates requires careful consideration of various factors, from cash flow management to long-term ownership goals.

By understanding the intricacies of each financing option and the benefits of leasing equipment, along with assessing individual business equipment loan needs and credit requirements, organizations can navigate the complexities of equipment financing with confidence, driving efficiency, innovation, and prosperity.

At Bluerock Options, our team of professionals is here for you when it comes to all your equipment financing needs. Reach out to us today to speak to a member of our team and get started on improving your financial future with ease.

• Equipment Leasing for Your Business
• Business Equipment Financing Loans To Buy Or Lease
• Equipment Leasing vs Bank Financing: Which is Better for Your Business?

Beauty salons provide esthetic services like hair cuts and styling, manicures and pedicures, facials and skin treatments, waxing and other forms of hair removal, and makeup applications. In addition to selling beauty supplies directly to customers, some beauty salons also offer spa-like treatments, including:

• Tanning
• Massages
• Aromatherapy
• Acupuncture
• Hair cutting, coloring, and styling
• Microblading
• Botox and fillers
• Tattooing and/or piercing

The global beauty salon market share was valued at roughly USD $144.48 billion in 2019, and is expected to grow to around USD$217.25B by 2026, with a compound annual growth rate of approximately 6%. This industry growth presents salon owners with a number of opportunities to expand and strengthen their business.

Though the personal care services industry (which includes barbershops and beauty and nail salons) suffered as a result of the COVID-19 pandemic, many salons quickly reopened when restrictions were lifted and new safety measures were introduced. Today, the beauty salon industry is set for a strong rebound. According to a 2022 article published by the Bureau of Labor Statistics (BLS), "when excluding the recovery of jobs lost during the pandemic, the industry is projected to grow 8.1% from 2020 to 2030." That's nearly five times faster than the average 1.7% growth for total employment.

What's behind the fast growth? According to BLS, "the primary long-term factors driving employment growth in the personal care services industry are the general increase in demand for grooming services, a growing customer base, and the introduction of new services."

As restrictions ease and consumers return to their pre-pandemic behaviors, beauty salon owners will face an urgent need to fill staff shortages so they can continue to service their ever-growing clientele. Beauty salon loans can help bridge gaps in cash flow and provide the financing you need to invest in new equipment, training for employees, and innovation that will help reduce costs, increase efficiency, and improve profit margins.

Multiple types of funding are available to help beauty salons overcome challenges and continue to grow. Long- and short-term funding is available, as well as secured and unsecured loans, including:

1. SBA beauty salon business loans
2. Bank loans for beauty salons
3. Alternative funding
4. Lines of credit
5. Equipment financing

Let's take a closer look at these options:

The Small Business Administration (SBA) doesn't directly provide beauty salon loans-instead, funding is approved and disbursed by partnering commercial lenders like banks or credit unions, and is guaranteed up to 85% by the SBA. This reduces the risk to the lender and, in theory, encourages them to grant more loans to beauty salons.

SBA beauty salon loans have the lowest rates and longest terms because the risk to the lender is lower. However, SBA loans have the most rigorous application process, with the strictest eligibility and most extensive documentation requirements. Some estimates suggest that it can take up to 30 hours to compile all the information you need, and it can take weeks or months to get a decision from your lender with no guarantee of approval. Most applicants are rejected, especially if they have no collateral, a history of unstable cash flow, are seeking short-term funding, or are operating in a higher-risk industry such as personal care services.

SBA loans are typically term loans. Multiple types of SBA funding are available-here are two of the most popular:

• 7(a) Guaranteed Loans: 7(a) loans are the most popular SBA beauty salon business loans. Funding up to $5M is available with the longest repayment terms and lowest rates and no restrictions on how funds are used. Collateral is often required, but Express loans are available with a 36-hour turnaround and no collateral requirements for loans under $25,000.
• 504 Local Development Company Loans: These loans are long-term, fixed-rate loans that are often used to purchase real estate. This funding is provided by Certified Development Companies through commercial lending institutions, and requires the borrowing business to use their financing to create or retain jobs, or to uphold other public policy goals such as rural development, revitalizing a business district, or supporting minority-owned businesses.
• Microloans: Available to a maximum amount of $50,000 with a maximum repayment term of 6 years, microloans can be used for working capital, inventory or supplies, furniture or fixtures, or machinery or equipment, and are available through select non-profit, community-based organizations.

Regardless of which type of SBA beauty salon loan works best for you, the application process for SBA funding is more intensive than any other lender with the strictest approval requirements. It can take weeks or months to get a decision and most applicants are rejected, especially those with low credit, seasonal businesses, businesses with a history of unstable cash flow, or those seeking short-term financing or smaller loan amounts.

Beauty salon owners may also be able to access the funding they need through commercial lenders like banks or credit unions.

Most often, bank loans for beauty salons are term loans that are repaid over a set period of time with fixed or variable interest rates. Terms and rates are typically competitive, but may not be as low as the SBA since the loan is not guaranteed, and will depend on the size of the loan and your credit history. Collateral may also be required.

Commercial lenders often have strict approval requirements, but they may not be quite as strict as the SBA, especially if you have an existing relationship with your lender. Banks tend to prefer granting loans for larger amounts or loans to large businesses with collateral, which means that beauty salons and other higher-risk industries with unstable cash flow may find it tough to get the funding they need from these sources. Similar to the SBA, applications can take weeks or months to approve, and most applicants are rejected.

Alternative funding from direct online lenders like Bluerock Options® emerged from the 2008 recession in response to a greater need for accessible small business funding. Loans from these lenders are typically easier to acquire than bank or SBA loans, with flexible approval requirements that place less emphasis on your credit score, fewer documentation requirements, and faster turnaround-sometimes in as little as one business day. Collateral is also typically not required.

Because approval requirements are more flexible, rates may be higher than other types of beauty salon loans. Repayment terms are often daily or weekly, depending on the type of alternative funding you receive.

Multiple types of funding are available from these lenders, including more traditional forms of funding like lines of credit and real estate collateral loans, as well as innovative non-loan forms of financing like merchant cash advances and invoice factoring.

Lines of credit are similar to business credit cards, but with longer terms and lower rates. They are one of the most flexible forms of beauty salon business loans, allowing salon owners to draw and repay from the line at any time.

There are no restrictions on how line of credit funds can be used, and you'll only ever pay interest on the amount borrowed. This makes lines of credit ideal for covering unexpected expenses, financing occasional large purchases of inventory or equipment, or managing other major expenses that don't require a larger loan but can still strain your cash flow.

Equipment financing is designed specifically to finance the purchase of new equipment, such as hair wash basins, barber station mats, stylist aprons, rolling carts, massage tables, hydraulic reclining chairs, hand towels, as well as tools like scissors, shears, and razors, and more.

Lenders will typically cover 80-100% of the cost of the new equipment and the equipment will serve as collateral to secure the loan, which may result in lower rates. These loans are often repaid in monthly installments, with a term length that corresponds to the length of time your lender expects the equipment will last.

The best beauty salon loan depends on your goals. Your funding, including the amount you borrow and your repayment terms, should always be used to serve a specific purpose that aligns with your business goals, such as renovating your salon to add more bays, hiring more stylists, or investing in new tools and technology so you can offer more services.

For short-term funding, non-loan forms of financing like merchant cash advances can provide a fast infusion of working capital. This type of funding can be used to hire staff, add new services, purchase inventory or technology, fill in cash flow gaps, or market your beauty salon to new customers.

For long-term funding, SBA and bank loans are the best option. SBA beauty salon loans offer the best rates but are the most difficult to acquire. Bank loans will offer similar rates and terms and may be easier to acquire if you already have an existing relationship with a lender. However, both SBA and bank loans can be tough for beauty salons to access due to perceived risk and industry volatility. Some alternative lenders also offer long-term funding options with easier approval requirements, such as small business loans and collateral business loans, but rates may be higher.

For fast funding, alternative lenders are always your best bet for a beauty salon loan. These lenders can approve and deposit funds in as little as 24 hours, while the SBA and banks can take months to assess an application with no guarantee of approval.

As the beauty supply market shifts due to client demand, staffing shortages, and changing personal care preferences, beauty salon owners will face a number of opportunities to grow, such as:

• Improving salon space: Beauty salon loans can provide the funds you need to renovate your existing space or expand to a larger space, or install better equipment and technology so you can offer more extensive services.
• Hiring staff: Hiring additional staff can help you service more customers, whether you take on more stylists or hire massage therapists, estheticians, nail technicians, or support staff so you can focus on customer service instead of paperwork. Beauty salon loans can provide the funds you need to hire and train new employees, or even develop internship or apprenticeship programs with local colleges to create a hiring funnel for new talent.
• Adding new services: Use beauty salon loans to hire technicians who can offer new services, or to invest in education for your existing techs so you can offer new services your customers are looking for. Loans for beauty salons can also be used to develop and offer new at-home service options, such as home hair coloring kits, home manicure kits, and more.
• Advertising: Whether you opt for online advertising, developing partnerships with personal care service providers or other local businesses, sponsoring local events, or whatever strategy makes sense for your salon and your community, beauty salon loans can supply the funding you need to reach new customers online and through traditional media.
• New technology: New technology can help streamline beauty salon operations like invoicing, managing inventory, handling vendors, and setting appointments, while also reducing your reliance on outdated paper records. Automating simple tasks and streamlining paperwork helps ensure that your staff can work as efficiently as possible so you can service more clients and earn more revenue. Beauty salon loans can provide the funding you need to invest in these technologies without straining your cash flow.
• Update your website: Use beauty salon funding to build a new website or update your existing one to better suit the changing needs of customers. Adding options to schedule appointments online, especially for routine cuts and styles, mani/pedis, or massages, or otherwise make the salon experience easier for customers can help set you apart from your competitors so you can earn more business.
• Purchase inventory: Selling products and at-home treatments can create a new revenue stream for your beauty salon. Beauty salon loans can provide the funding you need to purchase inventory, as well as invest in point-of-sale and inventory management software, or even ecommerce functionality for your website so you can sell products online.
• Digital consultations: Use beauty salon loans to create and host online seminars such as product showcases, tutorials, individual consultations, and other events. Engaging with your audience online can help you reach new customers, improve sales of merchandise, and even schedule more appointments.
• Men's beauty: Skincare and makeup for men is a fast-growing trend-the market for men's skincare products was worth $12.34 billion in 2021 and is forecasted to grow to $18.92 billion by 2027. Beauty salon loans can be used to invest in new techniques and products designed for men, as well as to advertise to male audiences to bring in new clientele.

Beauty salon loans can also help shop owners overcome the unique challenges of their field, including:

• Staff training: Beauty salon loans can cover tuition costs so you can provide specific salon training for every staff member. Staff who receive personal development opportunities tend to be more loyal to their salon because they feel valued and see commitment from their employers.
• Customer loyalty: Maintaining loyal customers when competing with other beauty salons is one of the most commonly reported challenges for beauty salon owners. Beauty salon business loans can help you meet this challenge by providing the funding you need to advertise your salon and reach new customers, purchase new equipment and technology to offer a higher caliber of services, or develop partnerships with other local businesses such as nail salons, acupuncture, and massage therapy clinics.
• Cost of equipment and tools: Day-to-day equipment such as gloves, aprons, towels, styling tools, hair wash basins, hydraulic chairs, mirrors and lighting can be expensive but necessary to run a successful beauty salon. Beauty salon business loans can be used to purchase this equipment without placing additional strain on your salon's daily cash flow.
• Cost of inventory: Shampoos, conditioners, serums, styling tools, nail polish, makeup, and other beauty regime products all require an outlay of working capital to purchase and keep on hand to sell to your customers. Use beauty salon loans to purchase inventory in advance so you can provide the best possible service to your customers.
• Supply chain: Salon owners and beauty technicians are struggling with supply chain issues, from supply backorders to long lead times. Loans for beauty salons can be used to create relationships with new suppliers, learn about alternative methods or materials, or purchase supplies and materials in bulk when possible.
• Equipment maintenance: Frequently used salon equipment must be regularly maintained to prevent it from malfunctioning. It's equally important to maintain a hygienic environment in your beauty salon. Maintenance costs can be high, which can eat into your profits. Beauty salon loans can give you the capital you need to maintain your equipment without negatively impacting your cash flow.

Traditional lenders often consider beauty salons to be a higher risk industry, which means applicants will have more hurdles to overcome when applying for funding from lenders like the SBA or a bank.

Make sure you have a firm understanding of your beauty salon's background and financials before you apply, including:

• Your operating history
• Revenue and profitability
• Personal and business credit scores
• Collateral

It's also a good idea to prepare your financial statements and documentation in advance in order to reduce any wait times. Compile the following documentation before you apply:

• Bank statements
• Profit and loss statements
• Personal and business tax returns
• Cash flow forecasts

You may also need to provide a business plan or purpose statement when you apply for a beauty salon loan. Traditional lenders will require a detailed plan outlining how you plan to use your funding, as well as how you plan to repay it, while alternative lenders are typically satisfied with a purpose statement. It's best to have this information prepared ahead of time in order to reduce any delays in receiving your funding.

Check out our small business loan documentation checklist for a comprehensive list of required paperwork.

As an alternative lender, Bluerock Options® can approve more beauty salon loans than traditional lenders. We can also approve loans for beauty salons faster, with funds deposited in as little as 24 hours. We offer several types of beauty salon funding to help grow your business, including merchant cash advances, invoice factoring, lines of credit, and more, with funding from as low as $3,000 up to $500,000.

Bluerock Options funds all auto repair specialties. Our expert Funding Advisors will work closely with you to determine which funding option will help you achieve your goals without compromising your business's cash flow.

There are nearly 622,000 landscaping and lawn maintenance businesses in the US, including specialties such as:

• Landscape architects and designers
• Landscape maintenance and technicians
• Interior landscaping
• Arborists and botanists
• Groundskeepers
• Heavy equipment operators, and more.

Globally, the landscaping market generated $11.46B in revenue in 2021, with a further projected increase of 0.9% in 2022. Thirty-one percent of landscaping businesses in the USA reported increases in local demand as their customers began spending more time at home in 2020, with landscape maintenance becoming the fastest growing service offering. And landscaper employment is expected to continue increasing through 2030, with an additional 8% growth projected and over 173,000 new job openings expected in 2023 alone.

As demand for landscaping services increases, so are operating costs-operating costs grew 11.9% in 2021. Along with these cost increases, supplies and materials are also becoming harder to find and labor shortages continue to impact the landscaping industry. This can lead to cash flow problems that may make it difficult for landscapers to meet increased demand and continue to grow their business.

Landscaping business loans can help landscapers of all sizes and specialties meet these challenges and continue to grow.

Long and short-term law firm funding options are available, including:

1. SBA landscaping business loans
2. Bank loans
3. Alternative funding
4. Lines of credit
5. Equipment financing

Let's take a look at each of these options.

Small Business Administration (SBA) loans are one of the most popular small business funding options. They offer the lowest rates, longest terms, and highest loan amounts, but they also have the longest application process with the most extensive paperwork requirements and the strictest eligibility criteria. You must be able to provide at least two years of detailed financial documentation, and only businesses with the strongest credit scores are approved.

SBA loans are not actually granted by the SBA-they are assessed, approved, and disbursed by partnering commercial lenders, and are simply guaranteed by the SBA up to 85% of the loan amount. This reduces the risk to the lender and, in theory, encourages them to approve more loans.

Multiple types of SBA landscaping business loans are available, including:

• 7(a) Guaranteed Loans: With loan limits as high as $5M, terms as long as 25 years, and the lowest rates available, 7(a) loans are the most popular SBA funding option. These loans typically require collateral, but have the fewest restrictions on how you can use your funding. Express loans are also available, with a turnaround time of 36 hours or less. Express loans typically don't require collateral for amounts under $25,000.
• 504 Loans: These long-term, fixed rate loans are commonly used to purchase real estate and equipment. Disbursed by community development corporations through commercial lending institutions, 504 Loans require the borrowing business to use their financing to create or retain jobs, or uphold other public policy goals such as rural development, revitalizing a business district, or supporting minority-owned businesses.
• Microloans: Available to a maximum amount of $50,000 with a maximum repayment term of 6 years, microloans can be used for working capital, inventory or supplies, furniture or fixtures, or machinery or equipment, and are available through select non-profit, community-based organizations.

Regardless of which type of SBA landscaping business loan works best for you, the application process for SBA funding is more intensive than any other lender with the strictest approval requirements. It can take weeks or months to get a decision and most applicants are rejected, especially those with low credit, seasonal businesses, businesses with a history of unstable cash flow, or those seeking short-term financing or smaller loan amounts.

Landscaping businesses may be able to access the funding they need from traditional commercial lenders like banks or credit unions, especially if they have an established relationship with their lender. Terms and rates for these landscaping business loans will be competitive, but may not be as low as the SBA and will ultimately depend on the size of the loan and your business's financial history.

Lending requirements may not be as strict as the SBA, but landscaping business loans may still be difficult to acquire from banks due to the perception of risk and factors like seasonality, lower margins, and unstable cash flow. Banks tend to prefer granting loans to larger businesses and loans for larger amounts, which can make it tough for small landscaping businesses and those looking for smaller loan amounts to get the funding they're seeking.

You may have better odds of approval if you already have a relationship with a lender, but similar to the SBA, it can take weeks or months for a bank to process a landscaping business loan application, and approval is never guaranteed.

Alternative landscaping business loans are available from direct online lenders like Bluerock Options®. Loan amounts are typically lower with shorter terms and higher rates than SBA or bank loans, but these lenders have more flexible approval requirements with faster application turnaround, making them an ideal option for landscaping businesses that may not be approved by other lenders.

Approval for alternative landscaping business loans is based on the overall health and potential of your business, with less focus on your financial history and credit score. These factors will still be considered, but they will be reviewed alongside other factors like vendor relationships, public reputation, and cash flow.

Some alternative lenders offer more traditional forms of funding like short term loans and lines of credit, while others like Bluerock Options specialize in innovative non-loan financing options like merchant cash advances.

Available from both traditional and alternative lenders, lines of credit for landscaping businesses function similarly to business credit cards but with longer terms and lower rates. Alternative lenders may have easier approval requirements than banks, but credit limits may also be lower and rates may be higher than traditional lenders.

Because lines of credit are revolving, business owners can draw and repay from the line as needed and will only ever pay interest on the amount borrowed. With no restrictions on how funds can be used, lines of credit are the most flexible form of landscaping business loan.They're typically used for covering unexpected expenses, making occasional purchases like inventory or new equipment, or managing other major expenses that don't require a larger loan but can still strain your cash flow.

Purchasing and maintaining equipment is one of the most capital-intensive aspects of running a landscaping business. Equipment financing is designed specifically to help businesses fund the purchase of new equipment, such as heavy machinery, storage equipment, and tools. The equipment or inventory acts as collateral to secure the loan, which may make this form of funding easier for newer landscaping businesses or those with lower credit scores to acquire.

Landscapers can use equipment financing to purchase small tools like hedge shears, trowls, shovels, and pruners, as well as large or heavy machinery like mowers, power washers, trimmers, vehicles, stump grinders, trailers, leaf blowers, and more. Equipment financing is also ideal for purchasing safety equipment like ear protection, gloves, and safety apparel for your staff.

The best landscaping business loan depends on how much funding you need, your financial history, your monthly sales, and how you plan to use your funding.

For short-term funding, non-loan financing such as merchant cash advances or invoice factoring can provide a quick infusion of working capital that can be used for any purpose, such as maintaining cash flow, covering unexpected expenses, hiring staff, or fueling your business's growth.

For long-term funding, SBA 7(a) loans offer the highest loan amounts, lowest rates, and longest terms, but they are the most difficult to acquire. Bank loans may have easier approval requirements, but they can still be difficult for landscaping businesses to access due to perceived risk and seasonality. If you don't meet the strict approval criteria of these lenders, alternative lenders also offer term loans, though terms may be shorter than SBA and bank loans.

For fast funding, alternative lenders are always your best choice. These lenders can approve and deposit funds in as little as one business day, while the SBA and banks can take weeks or months with no guarantee of approval.

As landscaping businesses navigate increased demand alongside labor and supply shortages, landscapers will face a number of opportunities to grow:

• New home sales: New home sales mean more opportunities for landscapers to service new homeowners. Sixty-two percent of landscaping customers are single-family residential homes, with the average homeowner spending $100-$200 per month on general landscaping maintenance, lawn care, gardening, and upkeep. Landscaping business loans can help you hire staff and market your business so that you can take advantage of this increased demand and begin building loyalty with new homeowners.
• Multi-seasonal spaces: People want to spend time outdoors more than ever, including in the winter. Landscaping businesses take advantage of this change in consumer behavior by developing and offering services that will help consumers create a functional, safe space that can be used year-round. Use funding to purchase new equipment, bid on larger projects, acquire materials, hire specialized staff to help with hardscaping and designing cold-weather spaces, or even develop new, seasonal service offerings such as holiday lighting or decoration services for Halloween or Christmas.
• Commercial demand: Demand from commercial businesses, such as malls, hospitals, and other large businesses is also increasing. Landscaping business loans can provide the working capital you need to acquire supplies and materials to bid on these projects or hire staff to handle larger projects or more clients, as well as boost your marketing so other businesses can find you and book your services.
• Infrastructure Investment and Jobs Act (IIJA): IIJA allocated $490 million to support natural infrastructure resilience and urban forests in 2022. Landscaping businesses can take advantage of this federal funding by familiarizing themselves with the process of bidding on public projects and boosting stock of native plants and trees. Use your landscaping business funding to shore up cash flow while you learn about the public bidding process or to stock up on native plants and trees for public projects.
• New services: Use landscaper funding to expand your service offering so you can up- or cross-sell other services once a project is complete. Offering new services like hardscaping, including things like construction, building fire pits, and creating accessible outdoor areas with pavilions and electric hookups for space heaters, motorized shades, and other equipment can give you a competitive edge over other landscapers who focus purely on maintenance and plant care.
• Efficient machinery: Investing in multi-purpose machinery is a great use of landscaping business funding. Machine versatility, in which one machine can handle multiple tasks, will allow landscaping businesses to improve their ROI, reduce costs associated with transporting multiple machines, and eliminate jobsite clutter. Traditional attachments like forks, trenchers, and buckets will remain popular, while stand-on skid steers and attachments for these machines like tree grapples and backhoes will grow.
• Technology: Use landscaper funding to purchase and implement landscape management software to help with quoting, scheduling, invoicing, and managing client relationships so you can work more efficiently and focus on tasks that generate revenue. You can also use landscaping business funding to implement sustainable irrigation practices with remote technology like controllers.
• Aversion to pesticides: As consumers grow more averse to pesticides, landscaping businesses will have an opportunity to develop and promote more landscape and lawn maintenance services, such as 100% manual weed removal. Landscaping business funding can help you boost your marketing so you can promote these services online or offline, generate more revenue, and stand out from your competition.
• Edible plants: 67% of adults are currently growing or are planning to grow edible plants. Use landscaping business funding to stock up on edible plants and take advantage of this increasing demand.

Landscaping business loans can also help you meet the challenges of running a landscaping or lawn maintenance business, including:

• Higher nursery input costs: The cost of seeds, containers, soil, labor, and anything else required to grow plants is up 12-14% over pre-pandemic levels, and these costs are expected to stay high-fertilizer prices are increasing 25-30% and other resources are showing a continued 5-15% increase in pricing. Landscaping business funding can provide the working capital you need to absorb these increased costs and acquire the materials you need to maintain your operations.
• Labor: Limitations to the H-2B program can make it difficult to hire workers to help meet increasing demand, and 43% of landscaping business owners worry that an ongoing shortage of quality labor will slow their growth in the next three years. Landscaping business loans like merchant cash advances can help your business hire proactively and offer competitive compensation packages that will attract new hires and retain existing staff. Learn more about how merchant cash advances can help you deal with staff shortages.
• Drought: As droughts become more common, homeowners are increasingly looking for ways to limit water use. Xeriscaping-gardening involving the use of drought-tolerant or low-water plants, practical turf, and efficient irrigation-is growing in popularity as people look to create landscapes and gardens that require less water. States across the country, especially in drought-prone areas, are also focusing on products that allow the efficient use of water; for example, nine states now require only pressure-regulating spray sprinkler bodies to be used in irrigation systems. Landscaping business loans can provide the capital you need to adjust your product and service offerings to meet these changing demands and regulations.
• Supply chain: Trouble accessing fertilizers, chemicals, plant materials, engine-powered equipment, and other essential supplies is creating challenges for landscaping businesses across the country. Material shortages are forcing landscapers to change project timelines to accommodate delays and longer times. Use landscaping business funding to maintain your cash flow during these waiting periods or to develop relationships with new suppliers so you can keep working if your usual vendors are back-ordered or out of stock.
• Seasonality: Landscaping businesses are more susceptible to seasonality than other industries, especially in cooler climates. Cash flow can suffer in the off-season, making it difficult to maintain operations and continue to grow during your busy season. Applying for landscaping business funding during your busy season when cash flow is strong can help ensure that you have cash flow available during your off-season so that you're in the best possible position next season.
• Slow paying clients: If your landscaping business services commercial clients, you may rely more heavily on invoicing clients than taking payment at the time of service. This delay in receiving payment can significantly impact your cash flow, especially as you contend with higher materials costs and supply chain challenges. Invoice factoring can help you bridge the gap between these payments so that you can maintain your cash flow and continue running smoothly.

Landscaping businesses are often considered to be "high-risk" loan applicants because of factors like seasonality, low margins, and cash flow shortages. This means applicants will have more hurdles to overcome when applying for funding from lenders like the SBA or a bank.

All lenders will require you to explain how you intend to use your landscaping business loan, as well as how you plan to pay it back. Traditional lenders will require a detailed business plan while alternative lenders are typically satisfied with a purpose statement. It's best to have this information prepared ahead of time in order to reduce any delays in receiving your funding.

Regardless of which lender or loan type you're seeking, make sure you have a firm understanding of your business's background and financials before you apply, including:

• Operating history
• Revenue and profitability
• Personal and business credit scores
• Collateral

It's also a good idea to prepare your financial statements and documentation in advance in order to reduce any wait times. Compile the following before you apply:

• Bank statements
• Profit and loss statements
• Personal and business tax returns
• Cash flow forecasts

Check out our small business loan documentation checklist for a comprehensive list of required paperwork.

As an alternative lender, Bluerock Options® can approve more landscaping business loans than traditional lenders. We can also approve loans for landscapers faster, with funds deposited in as little as 24 hours. We offer several types of landscaper funding to help grow your business, including merchant cash advances, invoice factoring, lines of credit, and more, with funding from as low as $3,000 up to $500,000.

Bluerock Options funds all landscaping and lawn care specialties. Our expert Funding Advisors will work closely with you to determine which funding option will help you achieve your goals without compromising your business's cash flow.

Auto repair shops service passenger cars, light and heavy commercial vehicles, bikes, and scooters by carrying out a number of maintenance functions, including:

• Mechanical and electrical repair and maintenance, such as transmission repair, electrical system repair, engine repair, and exhaust system replacement
• Auto body repair
• Paint
• Interior care
• Glass repair

The global auto repair market is expected to grow 11.4% in 2022 over 2021, with future projected growth of 10.3% through 2026. Though the industry is growing, repair shops are facing a number of new challenges in 2022.

According to a 2022 study conducted by automotiveresarch.com, prior to the COVID-19 pandemic, independent auto repair shops listed their biggest challenges as finding time for hands-on technician training, staying up to date with advances in diagnostics, keeping up with advances in vehicle technology, and finding knowledgeable and motivated technicians.

In 2022, independent repair shops are faced with new challenges primarily relating to parts shortages and supply chain issues:

• 35.8% of independent auto repair shops say finding parts or parts shortages are their biggest challenge
• 31.8% identify bringing customers back and providing incentives as their biggest issue
• 29.4% note that finding affordable parts is their main difficulty
• 27% say getting parts on time is their biggest challenge

Many auto repair shops, especially independent operators, are struggling to protect their margins as parts become increasingly difficult to find, demand for services grows, and wages increase. Unprecedented labor and supply chain pressures, as well as the increased adoption of hybrid and electric vehicles, will drive significant changes in the auto repair industry in 2022, pushing operators to cut costs by adopting new technology and investing in new equipment and training to offer more services that suit the changing needs of drivers.

Auto repair loans can help bridge gaps in cash flow and provide the financing you need to invest in new technology and innovation that will help reduce costs, increase efficiency, and improve profit margins.

Multiple types of funding are available to help auto repair shops overcome challenges and continue to grow. Long- and short-term funding is available, as well as secured and unsecured loans, including:

1. SBA auto repair shop business loans
2. Bank loans for auto repair shops
3. Alternative funding
4. Lines of credit
5. Equipment financing

Let's take a closer look at these options:

The Small Business Administration (SBA) doesn't directly provide auto repair shop loans-instead, funding is approved and disbursed by partnering commercial lenders like banks or credit unions, and is guaranteed up to 85% by the SBA. This reduces the risk to the lender and, in theory, encourages them to grant more loans to auto repair shops.

SBA auto repair shop loans have the lowest rates and longest terms because the risk to the lender is lower. However, SBA loans have the most rigorous application process, with the strictest eligibility and most extensive documentation requirements. Some estimates suggest that it can take up to 30 hours to compile all the information you need, and it can take weeks or months to get a decision from your lender with no guarantee of approval. Most applicants are rejected, especially if they have no collateral, a history of unstable cash flow, are seeking short-term funding, or are operating in a higher-risk industry such as auto repair.

SBA loans are typically term loans. Multiple types of SBA funding are available-here are two of the most popular:

• 7(a) Guaranteed Loans: 7(a) loans are the most popular SBA auto repair shop business loans. Funding up to $5M is available with the longest repayment terms and lowest rates and no restrictions on how funds are used. Collateral is often required, but Express loans are available with a 36-hour turnaround and no collateral requirements for loans under $25,000.
• 504 Local Development Company Loans: These loans are long-term, fixed-rate loans that are often used to purchase real estate. This funding is provided by Certified Development Companies through commercial lending institutions, and requires the borrowing business to use their financing to create or retain jobs, or to uphold other public policy goals such as rural development, revitalizing a business district, or supporting minority-owned businesses.

Auto repair shop owners may also be able to access the funding they need through commercial lenders like banks or credit unions.

Most often, bank loans for auto repair shops are term loans that are repaid over a set period of time with fixed or variable interest rates. Terms and rates are typically competitive, but may not be as low as the SBA since the loan is not guaranteed, and will depend on the size of the loan and your credit history. Collateral may also be required.

Commercial lenders often have strict approval requirements, but they may not be quite as strict as the SBA, especially if you have an existing relationship with your lender. Banks tend to prefer granting loans for larger amounts or loans to large businesses with collateral, which means that auto repair shops and other higher-risk industries with unstable cash flow may find it tough to get the funding they need from these sources. Similar to the SBA, applications can take weeks or months to approve, and most applicants are rejected.

Alternative funding from direct online lenders like Bluerock Options® emerged from the 2008 recession in response to a greater need for accessible small business funding. Loans from these lenders are typically easier to acquire than bank or SBA loans, with flexible approval requirements that place less emphasis on your credit score, fewer documentation requirements, and faster turnaround-sometimes in as little as one business day. Collateral is also typically not required.

Because approval requirements are more flexible, rates may be higher than other types of auto repair shop loans. Repayment terms are often daily or weekly, depending on the type of alternative funding you receive.

Multiple types of funding are available from these lenders, including more traditional forms of funding like lines of credit and real estate collateral loans, as well as innovative non-loan forms of financing like merchant cash advances and invoice factoring:

• Merchant cash advances provide a cash advance in exchange for a percentage of your daily or weekly credit and debit card sales. Also known as a "purchase of future receivables", MCA payments are automatically deducted based on your daily sales, which means days with higher sales will have higher payments and days with fewer sales will have lower payments. MCAs are ideal for businesses that process a lot of card transactions. Learn more about merchant cash advances.
• Invoice factoring helps auto repair shops leverage their unpaid invoices in exchange for working capital. Also known as accounts receivable financing, invoice factoring enables a business to sell their outstanding invoices to a lender, called a factor, in exchange for an advance of working capital. The lender will provide up to 90% of the invoice's value up front and pay out the remainder (minus any fees) when the invoice is paid. Invoice factoring is ideal for businesses that have long accounts receivable periods or large invoice values, such as auto repair shops that service corporate clients or work with insurance providers. Learn more about invoice factoring.

Alternative lenders may also have special funding programs for underserved communities, such as women- or minority-, or veteran-owned businesses.

Lines of credit are similar to business credit cards, but with longer terms and lower rates. They are one of the most flexible forms of auto repair shop business loans, allowing auto shop owners to draw and repay from the line at any time.

There are no restrictions on how line of credit funds can be used, and you'll only ever pay interest on the amount borrowed. This makes lines of credit ideal for covering unexpected expenses, financing occasional large purchases of inventory or equipment, or managing other major expenses that don't require a larger loan but can still strain your cash flow.

Equipment financing is designed specifically to finance the purchase of new equipment, such as vehicle scanners, air compressors, digital vehicle inspection tech, tools and equipment to service hybrid and electric vehicles, jacks and jack stands, hoists, cabinets and workbenches, creepers, and more.

Lenders will typically cover 80-100% of the cost of the new equipment and the equipment will serve as collateral to secure the loan, which may result in lower rates. These loans are often repaid in monthly installments, with a term length that corresponds to the length of time your lender expects the equipment will last.

The best auto repair shop loan depends on your goals. Your funding, including the amount you borrow and your repayment terms, should always be used to serve a specific purpose that aligns with your business goals, such as renovating your shop to add more bays, hiring more mechanics, or investing in new tools and technology so you can service hybrid or electric vehicles.

For short-term funding, non-loan forms of financing like merchant cash advances can provide a fast infusion of working capital. This type of funding can be used to hire staff, purchase inventory or technology, fill in cash flow gaps, or market your auto repair shop.

For long-term funding, SBA and bank loans are the best option. SBA auto repair shop loans offer the best rates but are the most difficult to acquire. Bank loans will offer similar rates and terms and may be easier to acquire if you already have an existing relationship with a lender. However, both SBA and bank loans can be tough for auto repair shops to access due to perceived risk and industry volatility. Some alternative lenders also offer long-term funding options with easier approval requirements, such as small business loans and collateral business loans, but rates may be higher.

For fast funding, alternative lenders are always your best bet for an auto repair shop business loan. These lenders can approve and deposit funds in as little as 24 hours, while the SBA and banks can take months to assess an application with no guarantee of approval.

As the auto repair landscape shifts due to supply chain challenges, parts shortages, and changing driving preferences, shop owners will face a number of opportunities to grow, such as:

• Improving shop space: Auto repair shop loans can provide the funds you need to renovate your existing space or expand to a larger garage, install larger garage doors so you can service more or larger vehicles, or add technology and equipment so you can offer more services.
• Hiring staff: Hiring additional staff can help you service more vehicles, whether you take on more mechanics or hire administrative or support staff so you can focus on repairs and service instead of paperwork. Auto repair shop loans can provide the funds you need to hire and train new employees, or even develop internship or apprenticeship programs with local colleges to create a hiring funnel for new talent.
• Chip shortage: COVID-19 and the resulting semiconductor chip shortage have led to a shortage of new vehicles. As a result, more people are buying used vehicles or maintaining their current car instead of replacing it, presenting auto repair shops with an opportunity to leverage increased demand for auto repair and maintenance services. Auto repair shop business loans can be used to help take advantage of these opportunities, whether you invest in marketing and advertising, purchase new equipment, or renovate your shop space to fit more vehicles.
• Electric vehicles: According to automotiveresearch.com, 75% of independent repair shops report that a portion of their business comes from servicing hybrid electric vehicles (HEVs), while 67% report business from battery electric vehicles (BEVs). Of the independent repair shops that service these vehicles, nearly 88% of shops that service HEVs and nearly 90% that service BEVs have seen an increase in the number of these vehicles coming into their shop in the last two years. Servicing HEVs and BEVs may require shop owners to invest in new technology, tools, or training. Auto repair shop loans can provide the working capital you need to upgrade your technology and cover continuing education costs for your technicians.
• Advertising: Whether you opt for online advertising, partnerships with dealerships or other local businesses, sponsoring local events, or whatever strategy makes sense for your shop and your community, auto repair shop loans can supply the funding you need to reach new customers online and through traditional media.
• Diagnostic devices: Auto repair shops are increasingly installing diagnostic devices in customer vehicles to track vehicle condition and identify problems. These devices feature automated systems that can identify potential issues, ensure parts are on hand, and connect with customers to complete the required repair. Auto repair shop business loans can be used to purchase these devices so they are available to install when customers opt in, leading to increased revenue down the line as problems are proactively identified and repaired.
• Artificial intelligence: AI systems can be used to inspect vehicles, and capture and compare images with standards to identify deviations and required repairs. These devices can save time and reduce costs by allowing mechanics to focus on repairs instead of diagnostics, but may require a significant investment of capital to purchase. Auto repair shop loans are ideal for purchasing this technology, which in turn will help you service more vehicles faster and generate more profit.
• Training and OEM certifications: Auto repair shop loans can cover tuition costs so you can work closely with OEMs and ensure that your technicians have the proper certifications and training to conduct repairs reliably.
• At-home/mobile services: Use auto repair shop funding to implement and advertise new remote services for simple maintenance like oil changes, tire changes, or other minor repairs and maintenance that can be done at customers' homes.
• Technology: New technology can help streamline shop operations like invoicing, managing inventory, handling vendors, and creating repair orders, while also reducing your reliance on outdated paper records. Automating simple tasks and streamlining paperwork helps ensure that your staff can work as efficiently as possible so you can service more vehicles and earn more revenue. Auto repair shop loans can provide the funding you need to invest in these technologies without straining your cash flow.
• Update your website: Use auto repair shop funding to build a new website or update your existing one to better suit the changing needs of customers. Adding options to schedule appointments online, especially for routine scheduled maintenance, pay invoices online, or otherwise make the auto service experience easier for customers can help set you apart from your competitors so you can earn more business.

Auto repair shop loans can also help shop owners overcome the unique challenges of their field, including:

• Parts shortages: Parts shortages are a persistent problem across the entire auto repair industry, leading to longer repair times and greater costs for customers. Auto repair shop loans can provide the working capital you need to navigate parts shortages without putting further strain on your cash flow, such as developing partnerships with local salvage yards, covering increasing part costs, or strengthening relationships with suppliers.
• Competition: Competition with larger shops and dealerships is the most commonly reported long-term challenge for shops with 1-3 bays. Auto repair shop business loans can help you meet this challenge by providing the funding you need to advertise your shop and reach new customers, purchase new tools and technology to service newer vehicles such as HEVs or BEVs, or develop partnerships with other local businesses such as salvage yards or dealerships.
• Older vehicles: Newer vehicles are more reliable and require less service. However, many drivers are opting to keep their existing cars on the road for longer-the average age of vehicles on the road grew by more than 20% since 2002, from 9.6 years to 11.9 years. Auto repair shops are seeing a higher number of older vehicles come through their service doors, but it can be hard to find parts for these vehicles if they have been discontinued by the original manufacturer. Using auto repair shop loans to strengthen relationships with parts suppliers and salvage yards or hire technicians who are familiar with older model vehicles can help you provide the service your customers need with less disruption.
• Cost of equipment and tools: Safety equipment such as gloves, jumpsuits, steel-toe boots, goggles, and welding masks, as well as repair equipment like tools, diagnostic equipment, drills, lifts, creepers, jacks, and air compressors are expensive but necessary to run a successful auto repair shop. Auto repair shop business loans can be used to purchase this equipment without placing additional strain on your shop's day-to-day cash flow.
• Cost of inventory: Engine parts, nuts and bolts, fluids, batteries, and other parts all require an outlay of working capital to purchase and keep on hand to reduce service times and improve service. Use auto repair shop loans to purchase inventory in advance so you can provide the best possible service to your customers.
• Payment delays: Auto repair shops who work with insurance companies or corporate clients often wait 30-60 days for these clients to pay their invoices. This can create cash flow challenges, especially as shops contend with parts shortages and other issues. Auto repair shop loans such as invoice factoring can be used to bridge cash flow gaps and allow you to offer early payment discounts with negotiable terms.
• Leasing: Vehicle leasing in the USA has quadrupled between 2009 and 2016, putting auto repair shops in a difficult position as drivers opt to take leased vehicles to dealerships for repair and maintenance. Auto repair shop loans can provide the funding you need to develop new programs to attract clients, or create partnerships with leasing companies or dealerships to handle overflow repairs.
• BEVs: Based on average recommended service intervals, BEVs may require approximately 30% fewer maintenance visits, with lower levels of maintenance needed for each service appointment. With less need for service, auto repair shops will need to find ways to reach new customers, such as offering different services or remote or at-home maintenance. Auto repair shop loans can help you implement these strategies, as well as invest in technology and training to service BEVs.
• Telematics: Newer vehicles feature increasingly more telematic features, advanced driver assistance systems, and connectivity options that require different skills to repair. Investing in the tools, systems, and training needed to service vehicles with these features can create a significant strain on your cash flow. Auto repair shop funding can be used to pay for training and new certifications to keep your shop on the cutting edge.
• OEM control of service: The increasing complexity of new vehicles requires more sophisticated technology and training. The integration of hardware and software needed to service newer vehicles, such as diagnostic tools and training or certifications, can be costly for non-OEM providers like independent repair shops. Auto repair shop loans can provide the funds you need to invest in OEM-certified technology and training so you can work in conjunction with OEMs.

Traditional lenders consider auto repair shops to be a higher risk industry, which means applicants will have more hurdles to overcome when applying for funding from lenders like the SBA or a bank.

Make sure you have a firm understanding of your auto repair shop's background and financials before you apply, including:

• Your operating history
• Revenue and profitability
• Personal and business credit scores
• Collateral

It's also a good idea to prepare your financial statements and documentation in advance in order to reduce any wait times. Compile the following documentation before you apply:

• Bank statements
• Profit and loss statements
• Personal and business tax returns
• Cash flow forecasts

You may also need to provide a business plan or purpose statement when you apply for an auto repair shop loan. Traditional lenders will require a detailed plan outlining how you plan to use your funding, as well as how you plan to repay it, while alternative lenders are typically satisfied with a purpose statement. It's best to have this information prepared ahead of time in order to reduce any delays in receiving your funding.

Check out our small business loan documentation checklist for a comprehensive list of required paperwork. Get a small business loan

As an alternative lender, Bluerock Options® can approve more auto repair shop loans than traditional lenders. We can also approve loans for auto repair shops faster, with funds deposited in as little as 24 hours. We offer several types of auto repair shop funding to help grow your business, including merchant cash advances, invoice factoring, lines of credit, and more, with funding from as low as $3,000 up to $500,000.

Bluerock Options funds all auto repair specialties. Our expert Funding Advisors will work closely with you to determine which funding option will help you achieve your goals without compromising your business's cash flow.

According to the National Restaurant Association, 7/10 restaurants are single-unit operations and more than 9/10 restaurants have fewer than 50 employees. Restaurants form a significant proportion of the nation's small business landscape, with restaurant workers accounting 3.8% of the total US workforce and employment projected to reach 17.2M by 2030.

Restaurants are also one of the industries hardest hit by the COVID-19 pandemic-sales in 2021 were down $65B from 2019, and total employment also dropped by 1M employees compared to pre-pandemic levels.

Many restaurants, especially independent operators, are struggling to protect their margins as food costs rise, wages increase, and federal support wanes. Unprecedented labor and supply chain pressures will drive significant changes in the restaurant industry in 2022, pushing operators to cut costs by changing menus and investing in labor-saving technology to free up cash for rising food costs and wages.

Restaurant funding can help bridge gaps in cash flow and provide the financing you need to invest in new technology and innovation that will help reduce costs, increase efficiency, and improve profit margins.

Multiple types of funding are available to help restaurant operators overcome challenges and continue to grow. Long- and short-term funding is available, as well as secured and unsecured loans, including:

1. SBA restaurant loans
2. Bank loans for restaurants
3. Alternative funding
4. Lines of credit
5. Equipment financing
6. Restaurant revitalization funding program

Let's take a closer look at these options:

The Small Business Administration (SBA) doesn't directly provide restaurant loans-instead, funding is approved and disbursed by partnering commercial lenders like banks or credit unions, and is guaranteed up to 85% by the SBA. This reduces the risk to the lender and, in theory, encourages them to grant more loans.

Because the risk is lower, SBA restaurant loans will have the lowest rates and longest terms. However, the application process is also the most rigorous, with strict eligibility and extensive documentation requirements. Some estimates suggest that it can take up to 30 hours to compile all the information you need, and it can take weeks or months to get a decision with no guarantee of approval. Most applicants are rejected, especially if they have no collateral, a history of unstable cash flow, are seeking short-term funding, or are operating in a higher-risk industry.

SBA loans are typically term loans. Multiple types of SBA funding are available-here are two of the most popular:

• 7(a) Guaranteed Loans: 7(a) loans are the most popular SBA loan for restaurants. Funding up to $5M is available with the longest repayment terms and lowest rates. There are no restrictions on how funds are used, but collateral is often required. Express loans are available with a 36-hour turnaround and there are no collateral requirements for loans under $25,000.
• 504 Local Development Company Loans: 504 loans are long-term, fixed-rate loans that are often used to purchase real estate. This funding is provided by Commercial Development Companies through commercial lending institutions, and requires the borrowing business to use their financing to create or retain jobs, or to uphold other public policy goals such as rural development, revitalizing a business district, or supporting minority-owned businesses.

Restaurant owners may also be able to access the funding they need through commercial lenders like banks or credit unions.

Bank loans for restaurants are most often term loans that are repaid over a set period of time with fixed or variable interest rates. Collateral may also be required. Terms and rates are typically competitive, but may not be as low as the SBA since the loan is not guaranteed, and will depend on the size of the loan and your credit history.

Lending requirements are often strict but may not be quite as strict as the SBA, especially if you have an existing relationship with your lender. Because banks tend to prefer granting loans for larger amounts or loans to large businesses with collateral, restaurants and other higher-risk industries with unstable cash flow and low margins may find it tough to get the funding they need from these sources. Similar to the SBA, applications can take weeks or months to approve, and most applicants are rejected.

Alternative funding from direct online lenders like Bluerock Options® emerged from the 2008 recession in response to a greater need for accessible small business funding. With flexible approval requirements that place less emphasis on your credit score, fewer documentation requirements, and faster turnaround-sometimes in as little as one business day-loans from these lenders are typically easier to acquire than bank or SBA loans. Collateral is typically not required and these lenders are also more likely to approve younger businesses, though some will not lend to businesses in operation for less than 6 months.

Because approval requirements are more flexible, rates may be higher than other types of restaurant loans. Repayment terms are often daily or weekly, depending on the type of alternative funding you receive.

Multiple types of funding are available from these lenders, including lines of credit and real estate collateral loans, as well as non-loan forms of financing like merchant cash advances and invoice factoring:

• Merchant cash advances, also known as a purchase of future receivables, provide a cash advance in exchange for a percentage of your daily or weekly credit and debit card sales. Payments are automatically deducted based on your daily sales, so days with higher sales will have higher payments and days with fewer sales will have lower payments. MCAs are ideal for businesses that process a lot of card transactions, such as restaurants. Learn more about merchant cash advances.
• Invoice factoring, also known as accounts receivable financing, helps businesses leverage their unpaid invoices in exchange for working capital. Essentially, a business will sell their outstanding invoices to a lender, called a factor, in exchange for an advance of working capital. The lender will provide up to 90% of the invoice's value up front and pay out the remainder (minus any fees) when the invoice is paid. Invoice factoring is ideal for businesses that have long accounts receivable periods or large invoice values. Learn more about invoice factoring.

Alternative lenders may also have special funding programs for underserved communities, such as women- or minority-owned businesses.

Lines of credit function similarly to business credit cards, but with longer terms and lower rates. These are one of the most flexible forms of restaurant funding, allowing restaurant owners to draw and repay from the line at any time.

There are no restrictions on how the funds can be used, and you'll only ever pay interest on the amount borrowed. This makes lines of credit ideal for covering unexpected expenses, financing occasional large purchases of inventory or equipment, or managing other major expenses that don't require a larger loan but can still strain your cash flow.

Equipment financing is designed specifically to finance the purchase of new equipment, such as industrial appliances, kitchen or dining room fixtures, new computers, point of sale systems, automation technology, delivery vehicles, and other special equipment.

Lenders will typically cover 80-100% of the cost of the new equipment and the equipment will serve as collateral to secure the loan, which may result in lower rates. These loans are often repaid in monthly installments, with a term length that corresponds to the length of time your lender expects the equipment will last.

The Restaurant Revitalization Funding Program is an SBA funding program that was made available to eligible restaurants, bars, and other food services businesses during the COVID-19 pandemic. Applications are now closed and this SBA funding program is no longer available, but restaurants who received funding are still able to use their funds for specific purposes.

The Restaurant Revitalization Funding Program provided restaurants with funding equal to their pandemic-related revenue loss, up to $10M per business and no more than $5M per physical location. Recipients are not required to repay their funding as long as the funds are used for eligible expenses no later than March 11, 2023. Eligible expenses include:

• Business payroll
• Business mortgage obligations
• Rent payments
• Debt payments
• Utility payments
• Maintenance
• Construction of outdoor seating
• Business supplies
• Food and beverage expenses
• Covered supplier costs
• Business operating expenses

While applications were open, the Restaurant Revitalization Funding Program had extensive documentation requirements on par with other SBA funding programs. Priority was given to businesses that were more than 51% owned by veterans, women, or socially and economically disadvantaged groups.

The best restaurant loan depends on your goals. Your funding, including the amount you borrow and your repayment terms, should always be used to serve a specific purpose that aligns with your business goals, such as expanding to a new location, hiring new staff, or changing your menu to meet new consumer demands.

For short-term funding, non-loan forms of financing like merchant cash advances can provide a fast infusion of working capital. This type of funding can be used to hire staff, purchase inventory or technology, fill in cash flow gaps, or market your restaurant.

For long-term funding, SBA and bank loans are the best option. SBA restaurant loans offer the best rates but are the most difficult to acquire, while bank loans will offer similarly competitive rates and terms and may be easier to acquire if you already have an existing relationship with a lender. However, both SBA and bank loans can be tough for restaurants to acquire due to perceived risk, low margins, and industry volatility. Some alternative lenders also offer long-term funding options with easier approval requirements, such as small business loans and collateral business loans, but rates may be higher.

For fast funding, alternative lenders are always your best bet. These lenders can approve and deposit funds in as little as 24 hours, while the SBA and banks can take months to assess an application with no guarantee of approval.

As the restaurant landscape shifts due to supply chain challenges, staffing shortages, and changing consumer expectations, restaurateurs will face a number of opportunities to grow, such as:

• Automation: Half of restaurant operators plan to adopt automation tech in the next 2-3 years, including automating simple back-of-house tasks like dishwashing and preparation of easy foods, voice-activated AI at drive-throughs, and self-service ordering kiosks for quick-service restaurants. Sixty-two percent of restaurant owners also believe automating inventory management will help streamline online, dine-in, and delivery orders, but only 36% of these respondents have upgraded business technology in the last year. Restaurant funding can provide the working capital you need to invest in automation technology that will help reduce reliance on employees, minimize costs, and maximize efficiency.
• Technology: Use of apps, third-party ordering, and direct online ordering surged during the pandemic and is unlikely to wane in 2022. Restaurants with strong integration between back-of-house operations and front-end technology like app ordering systems will be in the best position to navigate these changes. Restaurant loans can help you upgrade point of sale systems, reporting software, inventory management, and other technology so you can streamline operations and strengthen integration between your front- and back-of-house operations.
• Changing demand: 78% of millennials say they'd rather spend money on an experience such as dining in a restaurant versus purchasing an item. On the other hand, 41% of consumers say they'd buy a make-at-home meal kit from their favorite restaurant if it were offered. Restaurant loans can help you navigate these changing preferences, whether that means providing an exceptional dining room experience or adding new products to your offering to help meet changing consumer demands.
• Online presence: 90% of guests look at a restaurant online before dining. Seventy-nine percent of customers trust online reviews as much as they trust personal recommendations, and a one-star increase on Yelp can boost profits by up to 9%. Monitoring reviews on sites like Yelp, Facebook, and Google can make a big difference to the success of your restaurant, but requires time and effort that you may not be able to accommodate without hiring more staff. Restaurant funding can give you the capital you need to hire staff and free up time for your managers to respond to reviews and maintain a strong presence that will reflect positively on your restaurant and help drive more traffic to your website.
• Hiring staff: Restaurant loans can provide the financing you need to take on more staff, which will free up more time for you to focus on higher-level management concerns. Seventeen percent of restaurant professionals admit they don't regularly check sales, labor, and menu reports. Reviewing these reports regularly can unearth opportunities to cut costs, such as removing underperforming menu items and streamlining supply chain to improve your profitability.
• Delivery: Seventy-two percent of limited-service restaurants added enhanced delivery and online ordering in 2022, and 27% of people who use food delivery services are willing to pay extra for fast delivery. Margins on third-party delivery using apps like UberEats are low and can seriously cut into your bottom line. Restaurant owners can use their funding to innovate their delivery model by creating online ordering options and reducing their reliance on third-party partners.
• Online ordering: Offering online ordering directly through your website can help you avoid surcharges and fees offered by other meal delivery services like UberEats. Other virtual services such as making online reservations can also be beneficial, but these features may require assistance from an experienced web developer and an investment of capital in order to implement. Restaurant loans can provide the funding you need to meet your customers' needs online so you can capture more share of stomach and increase your revenue.
• Healthy menus: Sixty-one percent of diners say they are more likely to eat healthy at a restaurant now compared to 2 years ago. Other trends like zero-waste cooking and local sourcing are also increasing in popularity, but can pose challenges for restaurants who are looking to adapt but may not have the working capital to do so. Restaurant funding can provide the working capital you need to adjust your menus to offer healthy options, reduce waste, and prioritize local sourcing in order to meet these changing demands.
• Plant-based options: The increased adoption of plant-based diets presents a promising opportunity for restaurants, especially as supply chain pressures increase and the cost of animal-based proteins rises. Plant-based menu items can reduce costs for restaurants and smooth out supply chain issues when other proteins are not available. Restaurant loans can provide the funding you need to adjust your menu to meet these demands.
• Expansion: Food halls are growing in popularity and many developers that started planning projects pre-COVID have been left with large spaces to fill, presenting small restaurants with an opportunity to expand while commercial real estate prices are low. Restaurant funding can be used to expand to a new location, create a satellite location at a food hall, or adopt a "ghost kitchen" model that can help you reach more people with lower overhead costs.

Restaurant loans can also help restaurant owners overcome the unique challenges of their field, including:

• COVID-19: With some diners slow to return to indoor dining, restaurants are still dealing with cash flow challenges after two years of lockdowns and restrictions. Staff shortages are also common as more employees are out sick or caring for loved ones who are ill. Restaurant funding can help you shore up your cash flow, or even hire new staff so that you're better prepared to manage unexpected staffing changes.
• Staffing and employee turnover: Fifty-one percent of restaurant owners list staffing as a top challenge, and 35% say training is a top challenge. It can cost over $2,000 to hire and train a new employee, and up to $15,000 to hire and train a new manager. Experts believe the best way for restaurants to move forward is to attract and retain talent from a young age and provide opportunities to advance and grow from entry-level positions. Restaurant loans can help you implement these training and mentorship programs, or give you the working capital you need to attract the best talent and train new employees, including managers.
• Supply chain: Staffing shortages abound in agriculture, food production, and transportation, creating ripple effects through the entire supply chain. Supply chain issues are also impacting non-food goods like takeaway containers and other disposables, leading to increased prices that can strain already challenged profit margins. These issues are pushing restaurants to change their menus-8/10 restaurants offering table service have had to shorten their menus due to supply chain issues. Restaurant funding can provide the working capital you need to navigate these changes without putting further strain on your cash flow.
• Food costs: According to the National Restaurant Association, wholesale food costs were up 2.9% in 2021. Fifty-two percent of restaurant professionals named high operating costs and food costs as a top challenge, especially for meat, poultry, and fish. These costs have led to shorter menus-total restaurant menu items had fallen 10% from pre-pandemic highs by the end of Q3 2021-in an effort to reduce labor costs and waste. Restaurant loans can help shore up cash flow so you obtain the supplies you need to maintain your current menu or make adjustments to reduce costs.
• Rising cost of wages: Forty-seven percent of restaurant owners admit they have scheduled employees fewer hours each week due to minimum wage increases, and 16% say they've had to stop hiring to reduce labor costs. Low labor force participation rates coupled with high quit rates suggests that restaurant owners will have to increase wages to attract talent and improve employee satisfaction, but it can be difficult to do so when cash flow is already strained and margins are tight. Restaurant loans can provide the funding you need to increase wages and offer competitive hiring packages to attract new talent.
• Equipment: 47% of restaurateurs would replace or update equipment if they had money on hand. Equipment such as industrial ovens, fridges, coolers, ranges, and smaller machines like espresso machines and stand mixers can all streamline operations or open up new revenue streams, but require an investment of capital that may be difficult to make when cash flow is strained. Purchasing new equipment is a common use for restaurant funding.

Restaurants are considered to be a higher risk industry, which means applicants will have more hurdles to overcome when applying for funding, especially from traditional lenders like the SBA or a bank.

Make sure you have a firm understanding of your restaurant's background and financials before you apply, including:

• Your operating history
• Revenue and profitability
• Personal and business credit scores
• Collateral

You should also prepare your financial statements and documentation in advance in order to reduce any wait times. Compile the following documentation before you apply:

• Bank statements
• Profit and loss statements
• Personal and business tax returns
• Cash flow forecasts

You may also need to provide a business plan or purpose statement. Traditional lenders will require a detailed plan outlining how you plan to use your funding, as well as how you plan to repay it. Alternative lenders may also require a purpose statement. It's best to have this information prepared ahead of time in order to reduce any delays in receiving your funding.

Check out our small business loan documentation checklist for a comprehensive list of required paperwork.

As an alternative lender, Bluerock Options® can approve more restaurant loans than traditional lenders. We can also approve loans for restaurants faster, with funds deposited in as little as 24 hours. We offer several types of restaurant funding to help grow your business, including merchant cash advances, invoice factoring, lines of credit, and more, with funding from as low as $3,000 up to $500,000.

Bluerock Options funds all restaurant specialties. Our expert Funding Advisors will work closely with you to determine which funding option will help you achieve your goals without compromising your business's cash flow.

There are over 85,700 grocery stores in the USA. Supermarkets and grocery stores are the 2nd ranked retail trade industry in the country, projected to generate an estimated $765B in sales in 2022 and accounting for nearly 86% of the US food and beverage retail market.

Grocery businesses include any retail stores that sell food, including:

• Specialty stores
• Delis
• Health food stores
• Supermarkets
• Hypermarkets
• Wholesale grocers
• Greengrocers

As a purveyor of essential goods, grocery stores are typically more resilient to social and economic changes than other retail specialties. Though demand is relatively consistent and these retailers can typically rely on repeat customers, they are also more susceptible to challenges like low margins, supply chain issues, and spoilage.

Most of the grocery market is dominated by large businesses-mass-market retailers accounted for 48% of sales in 2020, and Walmart alone accounts for 47% of online grocery delivery and pickup sales. Large retailers may be more insulated from these challenges, but small, local grocery stores will feel the pinch more keenly when demand shifts, supply runs low, and consumer behaviors change.

Grocery stores of all sizes are looking for ways to pivot to meet changing customer needs and preferences. Physical stores remain the leading channel for purchasing groceries, but digital sales are projected to grow as more Americans go online to place grocery orders-online sales were expected to capture 10% of the total grocery market in 2021, and are projected to reach nearly $190B by 2024.

Larger grocers are better positioned to adjust to these changes, but smaller grocers may not have the working capital or infrastructure to pivot as easily. Retail store loans can help grocers of all sizes and specialties meet these challenges and continue to grow.

Long and short-term law firm funding options are available, including:

1. SBA loans for accountants
2. Bank loans for accountants
3. Alternative funding
4. Lines of credit
5. Equipment financing

Let's take a look at each of these options.

SBA loans are often considered to be the most ideal source of small business funding thanks to their low rates, long terms, and high loan amounts. They also have the longest application process, extensive paperwork requirements, and the strictest eligibility criteria-businesses must provide at least two years of detailed financial documentation, and only those with the strongest credit scores are approved.

SBA loans are not actually disbursed by the Small Business Administration. Instead, applications are reviewed and funds are disbursed by commercial lenders who partner with the SBA. If approved, the SBA guarantees the loan up to 85%, reducing the risk to the lender and in theory encouraging them to approve more loans.

Multiple types of SBA grocery store loans are available, including:

• 7(a) Guaranteed Loans: 7(a) loans are the most popular SBA funding option, with loan limits as high as $5M, terms as long as 25 years, and the lowest rates available. These loans typically require collateral, but have the fewest restrictions on how you can use your funding. Express loans are also available, with a turnaround time of 36 hours or less. Express loans typically don't require collateral for amounts under $25,000.
• 504 Loans: 504 Local Development Company Program loans are long-term, fixed rate loans that are commonly used to purchase real estate and equipment. These loans are disbursed by community development corporations through commercial lending institutions, and require the borrowing business to use their financing to create or retain jobs, or uphold other public policy goals such as rural development, revitalizing a business district, or supporting minority-owned businesses.
• Microloans: Microloans are available to a maximum amount of $50,000 with a maximum repayment term of 6 years. These loans can be used for working capital, inventory or supplies, furniture or fixtures, or machinery or equipment, and are available through select non-profit, community-based organizations.

Regardless of which type of SBA grocery store loan works best for you, the application process for SBA funding is the most rigorous with the strictest eligibility requirements. It can take weeks or months to get a decision, and most applicants are rejected, especially those with low credit, a history of unstable cash flow, or those seeking short-term financing or smaller loan amounts.

Grocery stores may be able to get the funding they need from traditional commercial lenders like banks or credit unions. Terms and rates will be competitive but may not be as low as SBA loans, and will ultimately depend on the size of the loan and your financial history.

Lending requirements may not be as strict as the SBA, but bank loans for grocery stores may still be difficult to acquire due to the perception of risk thanks to factors like lower margins and unstable cash flow.

Banks tend to prefer lending to larger businesses, or issuing larger loans, which can make it tough for smaller retailers and those looking for smaller loan amounts to find the funding they're seeking. Grocery stores with existing lender relationships may have better odds of getting approved, but similar to the SBA, it can take weeks or months to process a loan application, with no guarantee of approval.

Alternative grocery store loans are available from direct online lenders like Bluerock Options®. Application requirements are more flexible and turnaround is much faster-funds can be deposited in as little as one business day-but typically loan amounts are lower, terms are shorter (1-3 years or less), and rates will be higher than SBA or bank loans.

Approval for alternative grocery store funding is based on the overall health and potential of your business, with less focus on your financial history and credit score. These factors will still be considered, but will be reviewed alongside other factors like your cash flow, vendor relationships, and public reputation.

Multiple types of alternative funding are available, including short term loans and lines of credit, as well as innovative non-loan funding options like merchant cash advances and invoice factoring:

• Merchant cash advances are a non-loan form of financing known as an asset purchase. In exchange for a lump sum of working capital up front, your lender will receive a percentage of your daily or weekly credit and debit card sales until the advance has been repaid. MCAs are ideal for businesses that process a large volume of credit card transactions, including grocery stores. Learn more about merchant cash advances.
• Invoice factoring is another non-loan form of financing known as accounts receivable financing. Essentially, a business sells their outstanding invoices to a lender, called a "factor". The factor pays the lender up to 90% of the invoices' value up front and is responsible for collecting payment from the customer. When the invoice is paid, the factor will deposit the remaining amount into the borrower's account, minus any fees. Invoice factoring is ideal for businesses with large outstanding invoices and long accounts receivable periods. Learn more about invoice factoring.

Alternative lenders typically place no restrictions on how funds are used and often do not require collateral, making these lenders an ideal option for businesses that don't meet the strict criteria of the SBA and banks. With faster turnaround, alternative lenders may also be the best option for businesses that need fast funding or don't have time to navigate the long application process of these lenders. Alternative lenders are also more likely to lend to newer businesses, though some will not lend to businesses in operation for less than 6 months.

Lines of credit function similarly to credit cards, but with longer terms and lower rates. Business owners can draw and repay from the line as needed, and will only ever pay interest on the amount borrowed.

Business lines of credit are available from both traditional and alternative lenders. Alternative lenders may have easier approval requirements, but may also have lower credit limits and higher rates than traditional lenders.

Lines of credit are the most flexible form of financing for grocery stores, with no restrictions on how funds are used. Lines of credit are typically ideal for covering unexpected expenses, occasional purchases like inventory or new equipment, or other major expenses that don't require a larger loan but which can still strain your cash flow.

Equipment loans are designed specifically to finance the purchase of equipment, such as self-checkout kiosks, new computer systems, store fixtures, automation technology, or appliances like refrigerators and deli slicers. Similarly, inventory loans are designed to finance the purchase of new inventory, such as new product lines, seasonal inventory, or purchasing inventory in bulk at lower rates.

The equipment or inventory acts as collateral to secure the loan, so this type of loan may be easier to acquire for newer businesses or businesses with lower credit scores.

The best grocery store loan for your business depends on how much funding you need, your financial history, your monthly sales, and how you plan to use your funding.

For short-term funding, non-loan financing such as merchant cash advances or invoice factoring can provide a quick infusion of working capital that can be used for any purpose, such as purchasing inventory, bridging cash flow shortages, or marketing your grocery store to a wider audience.

For short-term funding, non-loan financing such as can provide a quick infusion of working capital that you can use to maintain cash flow, cover unexpected expenses, or fuel your business's growth.

For long-term funding, SBA 7(a) loans offer highest loan amounts, lowest rates, and longest terms, but they are the most difficult to acquire. Bank loans may be easier to acquire, but can still be difficult due to perceived risk. If you don't meet the strict approval criteria of these lenders, alternative lenders also offer term loans, though terms may be shorter than SBA and bank loans.

For fast funding, alternative lenders are always your best choice. These lenders can approve and deposit funds in as little as one business day, while the SBA and banks can take weeks or months with no guarantee of approval.

The grocery landscape is shifting. As consumer behaviors change, grocery stores will face number of opportunities to grow, such as:

• Online shopping: Shoppers have been pleased by the emergence of new options for click-and-collect and delivery and are indicating a preference to continue with these patterns as we emerge from the COVID-19 pandemic. 45% of millennials do their grocery shopping online and consumers typically spend nearly $40 more per order when they shop online, but it can be hard for smaller grocers to make the adjustment to omnichannel shopping despite these trends. Grocery store loans can help you invest in omnichannel approaches, such as subscription services with no-fee pickups, stocking primarily fresh items in store and fulfilling online orders for dried goods and other items, ensuring ease of selection and checkout, quick access to past orders, and transparency into in-stock items.
• All-natural or plant-based products: Demand for all-natural, plant-based, and organic products has expanded during the pandemic. According to McKinsey & Company, the trend is unlikely to revert and the "net intent to focus on healthy eating and nutrition is expected to be up 38 percentage points over 2020, with consumers specifically seeking out naturally healthy, high-protein, low-sugar, and low-calorie foods". Grocery store funding can help you acquire this inventory and make the necessary adjustments to your merchandising to stock these items without compromising your cash flow.
• Prepared meals and other household goods: Demand is growing for fresh, ready-to-eat, and frozen products as fatigue for cooking at home sets in and the meal kit industry grows. 40% of consumers also indicate they would prefer to frequent stores that sell more than just groceries, such as pharmacy items and household goods. Grocery store loans can help you invest in this inventory so you can better meet the changing needs of your customers.
• Updating technology and software: Adding self-checkout kiosks, developing e-commerce capabilities, and improving point of sale systems can streamline your operations and provide options that suit the changing needs and preferences of your consumers. These technologies can be costly, and grocery store loans can help you finance these purchases without impacting your cash flow.
• Data analysis and personalization: Consumers are more likely to patronize retailers that combine timely, relevant offers with good pricing, and 60% of leading grocery retailers invested in enhancing personalization strategies in 2020, particularly for promotions and pricing. Understanding what your customers are buying and analyzing their purchasing patterns can help you offer better sales and personalized promotions and project demand. This trend is projected to increase in 2022 as supply chain issues lead to more shortages and consumers seek suitable alternatives to their preferred products. Grocery store funding can help you invest in these technologies so you can offer compelling deals and promotions.
• Private label: A growing emphasis on affordability in 2021 and into 2022 may accelerate demand for private label brands. Grocery store loans can help you establish a private label, whether you develop it from scratch or partner with other local brands.
• Support local: 42% of consumers say they'd buy more locally sourced items moving forward. In a post-COVID world, many people also feel safer in smaller stores where there aren't as many shoppers and they can get in and out quickly. Use your grocery store loan to partner with other local businesses to create deals and promotions for products you can't carry in store, such as other household goods retailers or even local restaurants to offer kitchen-fresh or ready-to-eat-meals.
• Purchase inventory in bulk: Use your grocery store loan to purchase inventory in bulk at discounted prices, or stock up for seasonal sales.
• Renovate or adjust your floor plan: Grocery store loans can be used to give your store a facelift and create a more pleasant environment, or adjust your floorplan to better suit the changing needs of consumers by making more space for fresh foods, ready-to-eat, and prepared meals. You could also use your funding to expand your store and create more space to fulfill online orders

Grocery store loans can also help you meet the challenges of running a grocery store, including:

• Rising food prices: Food prices rose 3.5% in 2020 and have continued to climb faster than inflation in 2021 and 2022. Cash flow shortages may emerge as people spend less on groceries, and grocery store funding can help you bridge these gaps so you can continue to grow.
• Supply chain issues: COVID-19 led to widespread supply chain issues, and product shortages in food production, transport, and restocking are common as we emerge from pandemic restrictions. Motivating suppliers to prioritize smaller retailers over larger competitors can be a challenge, and independent stores are more often at the bottom of suppliers' priority lists. However, independent stores also have more freedom and agility when it comes to making supply chain adjustments, and grocery store loans can help you shore up cash flow shortages caused by supply chain issues so you can invest in new supplier relationships.
• Staff shortages: The ongoing effects of the COVID-19 pandemic are leading to more frequent staff shortages if more workers are home sick. Offering competitive salaries, paid sick days, and other benefits can help attract new workers. Adopting automated technologies such as self check-out kiosks or aisle-scanning robots to monitor inventory can help you address staff shortages. Grocery store loans can provide the funding you need to make competitive offers and invest in automated technologies.
• High competition: Smaller, local grocery stores must compete with bigger players who may be able to offer lower prices and better deals, as well as online ordering services like Instacart or Amazon delivery. Consumers are also consolidating their shopping patterns and are less willing to visit multiple stores per week to find what they want or to get the best price. It can be difficult for smaller, independent grocers to compete in such a market, with limited space for new products and less capacity to scale omnichannel approaches to offer the same convenience as larger players. Grocery store loans can provide the funding you need to adjust your promotions, products, or merchandising to compete with larger retailers.
• COVID-19: Grocers are considered essential retailers and therefore saw less change in demand and claimed more "share of stomach" during the pandemic-North American grocery sales grew by approximately 12% in 2020 compared to the standard growth of 1-2% per year. However, as restrictions ease, consumer spending at restaurants is expected to increase. Grocery store loans can help you pivot to meet the changing needs of consumers and capture as much "share of stomach" as possible.

Retailers, including grocery stores, are often considered to be a riskier loan applicant because of factors like low margins, high competition, and cash flow shortages. Here's what you need to know before applying for a grocery store loan:

• It can be difficult to get a grocery store loan from traditional lenders because these lenders typically consider grocery stores to be higher risk due to cash flow fluctuations caused by a reliance on selling higher quantities of lower-priced, perishable items. Alternative lenders have more flexible approval requirements that will factor in other criteria in addition to your financial history and may be a better source of funding for grocery stores.
• You may need to supply a business plan. All lenders will require you to describe how you plan to use your grocery store loan, as well as how you plan to repay it. The SBA and banks will require a formal business plan as part of your application, but alternative lenders may only require a purpose statement. It's always a good idea to have one prepared just in case in order to minimize any delays with your application.

Otherwise, the steps you'll follow when applying for a grocery store loan will be similar to other industries.

Learn more about how to apply for small business funding

As an alternative lender, Bluerock Options® can approve more grocery store loans than traditional lenders. We can also approve your grocery store funding faster, with funds deposited in as little as 24 hours. We provide several types of small business funding to help grow your grocery store, with funding from as low $3,000 up to $500,000.

Bluerock Options® funds all grocery specialties. Our expert Funding Advisors will work closely with you to determine which funding option will help you achieve your goals without compromising your business's cash flow.

The accounting services market is valued at $120.6B in 2022, with over 93,000 businesses employing nearly 1.4 million people. 7% growth is projected between 2020 and 2030 as the number of accounting businesses increases, corporate profits rise, and growth in corporate activity such as acquisitions and mergers and IPOs fuels demand.

The accounting industry is dominated by the "Big Four" professional services firms: Deloitte, Ernst & Young (EY), PricewaterhouseCoopers (PwC), and KPMG. Combined, these firms audit more than 80% of US public companies, including many Fortune 500 companies, earning a gross revenue of over $66.5B in 2020. Thanks to their size, the Big Four are able to offer a wide range of professional services, including auditing, assurance, taxation, management consulting, actuarial services, corporate finance, and legal services.

There are many other small accounting firms that operate independently of the Big Four. These firms typically offer a smaller number of accounting-focused services, including:

• Bookkeeping and accounting
• Payroll
• Tax
• Compliance
• Business advising
• Audit and assurance

Tax preparation and payroll are the two most commonly outsourced accounting tasks by SMBs. The majority of tax preparers are small businesses-37% are run by a single person and 53% employ less than 10 people.

The challenges faced by small accounting firms are growing as they contend with increased demand and other challenges unique to their field, such as competition with the Big 4, staff burnout, seasonal volatility, and technological advancements.

Accounting firm loans can help accountants overcome these challenges and embrace industry growth. All accounting specialties can benefit from accountant funding, including bookkeeping and accounting, tax and compliance accounting, business advisors, and audit and assurance specialists.

Accounting firm loans are designed for accountants who are preparing to start their own firm, as well as established businesses who are ready to grow. Long- and short-term loans for accountants are available, as well as secured and unsecured loans, including:

1. SBA loans for accountants
2. Bank loans for accountants
3. Alternative funding
4. Lines of credit
5. Equipment financing

Let's take a look at each of these options.

SBA loans for accountants are not direct loans-instead, they are offered in partnership with commercial lending institutions like banks. Your application will be processed and the funds will be disbursed by the bank, but the loan is guaranteed up to 85% by the Small Business Administration. This reduces the risk to the lender, allowing them to offer lower rates, longer terms, and larger loan amounts.

The SBA offers a number of loans for accountants. Here are some of the most popular:

• 7(a) Guaranteed Loans: These are the most popular loans for accountants, with the largest loan amounts, lowest rates, longest terms, and no restrictions on how funds are used. Loans up to $5M are available with terms as long as 25 years, and funds can be used to meet short- and long-term needs, as well as for expanding or acquiring a business.
• Express Loans: Express Loans are available up to $500,000, with SBA review completed in 36 hours. The SBA guarantees Express Loans up to 50%, with rates and approval determined by the partnering commercial lender.
• 504 Local Development Company Loans: 504 Loans are long-term, fixed rate loans that are administered by Community Development Corporations (CDCs) through commercial lenders. The lender provides 50% of funding, the SBA contributes 40%, and the remaining 10% comes from the borrower. These loans are granted to borrowers who are seeking to create or retain jobs or uphold other public policy goals such as supporting minority-owned businesses, revitalizing a business district, or rural development, and are commonly used for real estate or equipment.

The SBA considers accounting businesses to be higher risk, in part due to seasonal demand, which can make it difficult to acquire the funding you need. Only the strongest applications are approved-you must provide extensive paperwork along with years of detailed personal and business financial information, and you must also have an extremely high credit score and a strong financial history. The application process is also lengthy and it can take weeks or months to get a decision. If you don't need your funding quickly and you meet their strict approval criteria, SBA loans are often the preferred option thanks to their higher loan amounts, longer terms, and lower rates.

Banks also offer loans for accountants. Terms and rates are competitive, but may not be as low as the SBA and will depend on the size of the loan and your business and personal financial histories.

Approval requirements may not be as strict as the SBA, but it is still difficult to acquire funding from a commercial bank, especially if you don't have an existing relationship with the lender, can't offer collateral, or you are still establishing business credit. The application process can also take weeks or months with no guarantee of approval.

Banks tend to prefer granting loans to larger, established businesses, which can make it difficult for smaller firms to get the funding they need. Some commercial banks may offer loan programs that are designed specifically for accounting professionals, but accounting businesses are often considered higher risk due to seasonal volatility. However, if you are seeking a larger loan, don't need funding quickly, and you meet their approval criteria, bank loans are a good alternative to SBA loans and may suit your purposes better than alternative funding options.

Alternative funding for accountants is available from direct online lenders, including Bluerock Options®. Alternative lenders have more flexible underwriting requirements than banks or the SBA, with less focus on factors like credit score and financial history, no collateral requirements, and more emphasis on the health and potential of your business. These lenders also offer streamlined applications and approval processes and can deposit funds in as little as 24 hours.

Alternative lenders offer multiple types of funding, including more traditional funding options like lines of credit, collateral real estate loans, and term loans. They also offer innovative forms of financing that can be used to bridge seasonal cash flow gaps or provide working capital for growth, including:

• Merchant Cash Advances: Merchant cash advances are a non-loan form of financing known as a purchase of future receivables. You'll receive a cash advance up front, and your lender will receive a percentage of your daily or weekly credit card sales until the advance has been repaid. Learn more what MCA is & what they is used for.
• Invoice Factoring: Invoice factoring is another non-loan form of financing known as accounts receivable financing. You'll sell your outstanding invoices to a lender, called a "factor", and the factor will advance you up to 90% of the invoice's value. The remainder will be paid out to you when your client pays. Learn how online invoice factoring for small business works.

Loan amounts are typically lower with shorter terms than SBA or bank loans. Because terms are shorter and approval requirements are more flexible, rates may be higher; however, it's a common misconception that alternative funding rates are always higher than other forms of funding. Shorter terms often means your funding will cost less over the lifespan of the loan, but ultimately the cost of your funding will depend on the type of funding you're seeking and your business's risk assessment and creditworthiness.

If you need a smaller loan, fast funding, or don't meet the strict approval requirements of the SBA or commercial banks, alternative funding may be the right option for your accounting firm.

Lines of credit are available from both traditional and alternative lenders, typically for longer terms than short-term funding options like MCAs or invoice factoring and with larger limits and lower rates than business credit cards. Fixed or revolving terms are available, as well as secured and unsecured lines of credit, though unsecured lines of credit may have higher rates or lower limits than secured lines.

Lines of credit offer the most flexibility, allowing borrowers to draw and repay from the line as needed, only ever paying interest on the amount borrowed. This makes lines of credit ideal for covering unexpected expenses, purchasing inventory, repairing equipment, investing in growth, or bridging seasonal cash flow gaps.

Equipment financing is designed specifically to fund the purchase or repair of equipment or technology. These loans are offered by commercial lenders, though alternative lenders also offer funding options that can be used to purchase equipment and technology, such as:

• Investing in cloud accounting software or new tech to streamline operations and improve efficiency, or meet the changing needs of your clients and stay on the cutting edge
• Purchasing new computers or laptops to facilitate flexible working policies and enable remote work or on-site work
• Upgrading office fixtures like desks

The equipment serves as collateral to secure the loan, which can make equipment financing easier to acquire than other types of funding, especially if you're just starting your accounting firm. Loan terms will typically match the lifespan of the equipment, and a down payment may be required.

The best loan for accountants depends on your goals. The loan, including the type of funding, the loan amount, and repayment terms, should serve a specific purpose that helps you achieve your business goals, such as hiring staff, purchasing a business, investing in new technology, or improving your services.

For short-term funding, non-loan financing such as merchant cash advances or invoice factoring can provide a quick infusion of working capital that you can use to maintain cash flow, cover unexpected expenses, or fuel your business's growth.

For long-term funding, SBA 7(a) loans offer the largest loan amounts with the longest terms and lowest rates, but they are the most difficult to acquire. Bank loans may be a good alternative, especially if you already have an established relationship with a bank.

For fast funding, alternative lenders are always the best option. These lenders have flexible underwriting requirements and can approve and deposit funds in as little as 24 hours, while SBA and bank loans can take weeks or months with no guarantee of approval.

21% of small- and medium-sized business owners admit to not knowing enough about bookkeeping-a positive sign for accounting firms. In addition, 91% of companies with 26-100 employees are satisfied with their accountant's efforts, further underscoring the anticipated growth of the accounting industry.

As the industry grows, accountants will face a number of opportunities to grow, such as:

• Adopting cloud accounting: 82% of small businesses and 57% of enterprises use cloud accounting, and about 67% of accountants prefer cloud accounting. Accounting firm funding can provide the working capital you need to invest in cloud accounting software and employee training without negatively impacting your firm's cash flow during the transition.
• Offering client education: 27% of small- and medium- sized business owners feel their accountant doesn't provide them with enough advice, and 23% say their accountant doesn't educate them enough. Funding can help you develop and implement client education programs or hire new staff to communicate with clients and educate them on day-to-day cash flow management, tax preparation, and other accounting efforts.
• Investing in new technology and software: The global accounting software market is expected to reach a value of $20M by 2026. Over half of accountants say technology is increasing their productivity, and 35% say updating their technology has helped them keep pace with client expectations, resulting in increased retention rates. Accounting firm funding can be used to invest in new technology so you can increase productivity and offer better services, such as CRM software, cloud accounting, and client records management software.
• Hiring new staff: Accounting firm funding can provide the working capital you need to hire qualified new staff so you can take on more clients or offer a wider range of services.
• Upskilling current employees: Investing in training and education for your existing staff will enable you to offer more services and retain your best employees, such as learning more about cloud accounting, enterprise resource planning, data analytics, or financial modeling and forecasting.
• Embracing automation: Automation minimizes the chance of human errors and inaccurate calculations. Nearly 50% of accounting firms intend to use automation to streamline repetitive, time-consuming tasks such as data entry, invoicing, or accounts payable processes, and nearly ¼ of accounting firms strongly agree artificial intelligence will help improve operations and automate tasks. Automation software can be costly to implement, and accounting firm funding can provide the working capital you need to get started and ensure a smooth transition.
• Boosting marketing: Accounting firm funding can be used to create or update your website, as well as develop online and offline communications strategies to ensure new and existing clients know about what service you offer, especially if you're offering new services.
• Purchasing another firm: Acquiring an existing business is one of the simplest ways to start or grow your accounting firm, but this method of starting up or expanding often comes with very high costs. However, these costs typically include a client roster, as well as all equipment and fixtures, which can simplify the process of opening a new business and eliminate some of the stress of marketing your firm to attract new clients.

Accounting firm loans can also be used to help accountants overcome the unique challenges of their field, including:

• Seasonal revenue bias: March and April are the peak of tax season, and many accountants are booked solid during these times but experience drops in business throughout the rest of the year. Accountant loans can help stabilize cash flow during these times so you can continue to operate at your best and grow your business.
• Slow-paying clients: Though accountants typically have a demonstrated ability to manage finances responsibly, sometimes clients don't pay on time and working capital is tied up in accounts receivable. This can negatively impact your cash flow and make it difficult to manage your business's finances. Accountant loans can help fill in these gaps so you can continue to grow your firm.
• Switch to remote work: More employees are demanding flexibility-77% of accounting professionals would like to continue working from home-and workplaces need to adapt in order to retain talent. This can mean investing in new tech so your staff can work remotely, or creating programs that will allow you to hire remotely so you can bring in the best talent. Accounting firm funding can provide the working capital you need to enable this flexibility.
• Changing client expectations: Client needs and expectations are changing as pandemic restrictions loosen and technology advances. Accountant loans can help you stay on the cutting edge by giving you the working capital you need to create and implement programs or offer new services to meet changing client needs.
• Hiring qualified staff: 40% of respondents to a Sage Practice of Now 2019 study claimed that company reputation was the main reason why they chose to join one firm over another. It can be difficult for smaller firms to compete with the Big Four and other larger firms with prestigious reputations and higher compensation packages. Accountant loans can help smaller accounting firms make a competitive offer to attract qualified staff.
• Technology literacy: 57% of accountants found tech literacy to be the most critical additional skill for future employees. Accounting firm funding can help you provide tech training programs for new and existing staff so you can stay on the cutting edge.
• Tax law and regulatory changes: Tax laws are constantly changing-even more so in recent years thanks to federal COVID-19 relief programs, including tax extenders, deductible PPP funding, and PPP loan forgiveness. Accountant loans can provide working capital to help you keep on top of these changes.

Accountants are often considered to be higher risk applicants due to seasonal cash flow volatility. Some lenders may only consider applicants who have 3+ years of experience as a partner or a high-level CPA. Other factors that may be considered include:

• Profit margins: Some lenders look for profit margins or 25% or more before partners' salaries have been deducted.
• Down payments: You may need to provide a down payment, depending on the lender you're working with and how you plan to use the funding.
• Revenue and billing structures: Delays receiving payments from clients can strain your cash flow, which may make it difficult to get approved for accounting firm funding. Requesting payments up front, billing quickly, and providing easy ways to pay can improve cash flow.
• Business plan: You may be asked to provide a business plan that outlines a timeline of your accounting firm's income for the last 1-5 years, including costs associated with running your firm, an analysis of competition in your area, and how you intend to use and repay your funding. Some lenders, including the SBA, will require this, while others, such as alternative lenders, may not. It's always a good idea to have it prepared just in case to minimize any delays with your application.

Otherwise, steps you will follow to apply for accounting firm funding will be similar other industries

As an alternative lender, Bluerock Options® can approve more accountant loans than traditional lenders. We can also approve loans for accountants faster, with funds deposited in as little as 24 hours. We offer several types of accounting firm funding to help grow your business, including merchant cash advances, invoice factoring, lines of credit, and more, with funding from as low as $3,000 up to $500,000.

Bluerock Options funds all accounting specialties. Our expert Funding Advisors will work closely with you to determine which funding option will help you achieve your goals without compromising your business's cash flow.

There were over 75,000 veterinary practices in the USA in 2020, with more than 50,000 of these exclusively providing care to companion animals. And the veterinary and pet care industry is growing-the market size of the veterinary industry in the USA is expected to increase 5.1% in 2021.

A number of factors are fueling this rapid growth:

• 30% of Americans adopted a pet during the COVID-19 pandemic, and revenue for the veterinary services industry increased 7.7% in 2020 thanks to this surge in pet ownership amid stay-at-home orders.
• The number of insured pets is increasing. According to the North American Pet Health Insurance Association, the total number of pets insured in the United States and Canada has grown 17.2% over the past five years, reaching 3.1 million in 2020.
• Millennials are the largest pet-owning demographic, and they are willing to pay more for quality services to improve the health and well-being of their pets.

As demand for veterinary services grows, so does the shortage in the number of qualified vets. Employment for veterinarians is expected to increase 17% from 2020 to 2030 and about 4,400 openings for veterinarians are projected each year.

The challenges faced by veterinary practices are also growing as they contend with increased demand and other challenges unique to the field, such as slow cash flow, continuing education needs, and maintaining qualified staff.

Veterinary practice loans can help vets overcome these challenges and embrace industry growth. All veterinary specialties can benefit from veterinary practice funding, including species-specialized veterinarians, veterinary behaviorists, veterinary clinical pharmacologists, veterinary dentists, emergency and critical care, internal medicine veterinarians, lab animal medicine, veterinary surgeons, and wildlife veterinarians.

Veterinary practice loans are designed for vets who are preparing to start their own practice, as well as established practicing veterinarians who are ready to grow. Long- and short-term loans for veterinarians are available, as well as secured and unsecured loans, including:

1. SBA loans for veterinarians
2. Bank loans for veterinarians
3. Alternative funding
4. Lines of credit
5. Veterinary practice acquisition loans
6. Equipment funding
7. Veterinary grant programs

Let's take a look at these options.

SBA loans for veterinarians are not provided by the Small Business Administration-your application is processed and your funds are disbursed by commercial lenders and the loan is guaranteed up to 85% by the SBA. This reduces the risk to the lender, which in turn reduces your rates and fees.

The SBA offers a number of loans for veterinarians, including the popular 7(a) Guaranteed Loan program, Express Loans, and 504 Local Development Company Program loans:

• 7(a) Guaranteed Loans: These are the most popular loans for veterinarians, with the largest loan amounts, longest terms, lowest rates, and no restrictions on how funds are used. Loans up to $5M are available with terms up to 25 years, and funds can be used to meet long- and short-term needs, as well as for expanding or acquiring a practice.
• Express Loans: Express Loans are available up to $500,000 with SBA review completed in 36 hours. The SBA guarantees these loans up to 50% with rates and approvals determined by partnering commercial lenders.
• 504 Local Development Company Loans: 504 Loans are long-term, fixed rate term loans that are administered by Community Development Corporations (CDCs) through commercial lending institutions. The lender provides 50% of the funding, the SBA provides 40% of the funding, and the remaining 10% comes from the borrower. 504 Loans are granted to borrowers who are seeking to create or retain jobs or uphold other public policy goals such as supporting minority-owned businesses, revitalizing a business district, or rural development. These loans are commonly used for real estate or equipment.

Because they typically have the largest loan amounts, lowest rates, and longest terms, SBA loans are one of the most highly-sought loan options for veterinarians. Veterinarians are also a preferred business type for SBA lenders thanks to their stability, high earning potential, and lower likelihood of defaulting.

However, the application process for SBA loans is lengthy (sometimes up to 4 months) and requires extensive paperwork, along with years of detailed personal and business financial information. This documentation can be difficult to compile, and approval is never guaranteed.

Many commercial banks also offer loans up to $5M for veterinarians. Terms and rates are competitive but may not be as low as SBA loans, and will depend on the size of the loan and your business and personal credit histories.

Some banks, including Wells Fargo and Bank of America, offer loan options designed specifically for veterinarians. These loans may include features such as:

• Interest-only and graduated payment structures for start-ups
• Dedicated project managers for project-related loans
• Commercial real estate loans to purchase or refinance office space
• Equipment loans

Established owners may qualify to receive all their funds at once to self-manage a project.

Approval requirements may not be as strict as the SBA, but bank loans for veterinarians are still difficult to acquire, especially if you don't have an existing relationship with a lender or you are still establishing your business credit. The application process can also take weeks or months with no guarantee of approval.

The anticipated revenue and stability of veterinary practices makes these businesses an attractive candidate for bank loans, but it may still be tough to get the funding you need if you're a newer practice, have low credit, or can't offer collateral. Banks tend to prefer approving larger loan amounts for larger, established businesses, which can make it tough for smaller practices to get the funding they need from a bank that doesn't offer dedicated veterinary practice loan programs.

Alternative funding options for veterinarians are available from direct online lenders like Bluerock Options®. These lenders have more flexible underwriting requirements than banks and the SBA, with less focus on credit score and financial history and more focus on the health and potential of your business. These lenders also offer streamlined applications and approval processes and can deposit funds in as little as 24 hours.

Multiple types of funding are available from alternative lenders, including more traditional funding options like lines of credit, collateral real estate loans, and term loans. These lenders also offer innovative non-loan forms of financing that are ideal for bridging cash flow gaps and providing working capital for growth, such as merchant cash advances and invoice factoring. There are no restrictions on how your funds are used.

Loan amounts are typically lower and terms are shorter than the SBA and bank loans. Because terms are shorter and approval requirements are less strict, rates may be higher. However, it's a common misconception that alternative funding always costs more than other forms of funding. Ultimately, your rates and fees and the total cost of your funding will depend on the type of funding you're seeking and your business's risk assessment and creditworthiness.

Business lines of credit are available from traditional and alternative lenders, typically for longer terms than short-term funding options like merchant cash advances or invoice factoring, and with larger limits and lower rates than business credit cards.

Lines of credit offer the most flexibility. Borrowers can draw and repay from the line as needed, making this form of funding ideal for responding to unexpected expenses, purchasing inventory, repairing equipment, investing in growth, or filling in cash flow as needed. With fixed or revolving terms, you only ever pay interest on the amount borrowed.

Veterinary practice acquisition loans are designed for the express purpose of purchasing another practice, whether you're just starting up, are purchasing a retiring veterinarian's practice, or are considering expanding your current practice by acquiring another.

Multiple types of funding can be used to acquire a veterinary practice, including SBA 7(a) Guaranteed Loans, 504 loans, traditional bank loans, and alternative funding. Some lenders, including the Bank of America and Wells Fargo, also offer loan options specifically to help veterinarians acquire a practice.

Veterinary practice acquisition loans are typically for larger amounts, which means you'll need to provide detailed financial information when you apply. Be prepared to supply:

• A purchase agreement
• Current balance sheet
• Year-to-date profit and loss statements
• Federal tax returns
• A schedule of inventory, equipment, and fixtures, as well as other assets when applying

You may also need to provide collateral to secure the loan.

Traditional equipment financing is offered by commercial lenders. Alternative lenders also offer funding options that can be used to purchase or repair equipment, such as merchant cash advances.

Equipment financing is designed specifically to finance the purchase or repair of veterinary equipment, such as scales, lighting, IV pumps, anesthesia machines, exam and procedure tables, and digital x-ray imaging and ultrasound machines, and more. The equipment serves as collateral, which can make these loans easier to acquire, especially if you're just starting a practice. Loan terms will typically match the lifespan of the equipment, and a down payment may be required.

The USDA offers grants to help relieve veterinarian shortages and support veterinary services. Grants are available on a competitive basis to help practices develop and sustain veterinary services through education, training, recruitment, placement, and retention.

Authorized by the Veterinary Medical Services Act, the Veterinary Services Grant program offers large grants over $2M. Applications for 2021 are closed, so keep an eye on their website for key dates in 2022.

The best loan for veterinarians depends on your goals. The loan, including the type of funding, loan amount, and repayment terms, should serve a specific purpose that helps you achieve your business goals, such as purchasing or upgrading equipment, hiring staff, or improving your services.

For short-term funding, non-loan financing such as merchant cash advances or invoice factoring can provide a quick infusion of working capital that can help you maintain cash flow, cover unexpected expenses, or fuel your growth.

For long-term funding, SBA (7a) Guaranteed Loans offer the largest loan amounts with the longest terms and the lowest rates, but are the most difficult to acquire. Bank loans are a good alternative to SBA loans for veterinarians, especially if you have an established relationship with a bank or are working with a lender that offers loans designed specifically for veterinarians.

For fast veterinary practice loans, alternative lenders are always your best bet. These lenders, including Bluerock Options, can approve and deposit funds in as little as 24 hours, while SBA and bank loans can take weeks or months to process with no guarantee of approval.

Veterinary practice loans can help vets overcome the unique challenges of their field, including:

• Slow cash flow: As veterinary care prices continue to rise, customers are often slower to pay. Providing options to pay over time using payment plans, prepayment plans, wellness plans, or pet savings accounts can help stabilize your cash flow.
• Continued education: Veterinarians are required to complete a minimum of 50 continued professional development hours per year. Meeting this requirement can place additional strain on your cash flow if you have to pay tuition, as well as take time away from working and earning revenue. Funding can help you meet these costs and manage your cash flow while you train.
• Maintaining qualified staff: Many veterinary professionals are leaving the industry because of stress and burnout due to COVID-19, new procedures, and the pet adoption boom. According to the American Veterinary Medical Association's 2020 Census of Veterinarians report, poor work-life balance is the most common problem for veterinarians, with 75% naming it the top reason for wanting to leave the profession. Veterinary practice loans can help you maintain your cash flow while you hire and train new team members, as well as adapt to new procedures and larger client rosters.
• COVID-19: Appointments are taking longer due to safety regulations and capacity limits, which means vets see fewer patients per day while also contending with increased costs and demand. According to the AVMA, the average monthly cash shortfall across practices was $17,000 in April 2020 and $14,000 in June 2020. Funding can help you fill in cash flow gaps and keep growing under COVID-19 restrictions.
• Changing patient needs and growing demand: The pandemic adoption boom has created a major increase in demand for veterinary services. Veterinary practice loans can help you adjust your services or add to your team so you can see more patients and continue providing top-level care.
• Equipment and inventory: Veterinary inventory such as drugs, medicines, ointments, clinic consumable supplies, pet food, and other over the counter products is expensive but critical to providing top-notch services. Outdated or broken equipment can be costly to repair or replace. Small business funding such as equipment financing or short-term alternative funding like a merchant cash advance can help you cover these costs. Loans for veterinarians can also help you invest in new technology to keep your practice on the cutting edge, such as scales, lighting, IV pumps, anesthesia machines, exam & procedure tables, and digital x-ray imaging and ultrasound machines.
• Insurance: As of 2016, those in veterinary service professions were the second most likely to be injured while working. Insurance coverage for malpractice and workplace injury can be costly and strain your cash flow, but is mandatory for operating a veterinary clinic.

Veterinary practice loans can also be used to help grow or expand your practice. Pet owners spent more than $18 billion on veterinary care in 2018 and this number is likely to increase as pet ownership rises, presenting veterinarians with a number of opportunities for growth:

• Purchasing real estate: Reduce your monthly expenses and expand your assets by purchasing your current office space, or grow your practice by expanding to another location. Owning your veterinary office space also makes it easier to update or renovate to accommodate new services, hire more staff, or create a more comfortable environment for your patients.
• Acquiring a practice: Acquiring an existing practice is one of the simplest ways to start or grow your practice, but this method of starting up or expanding often comes with very high costs. However, these costs typically include the patient roster, as well as all equipment and fixtures, which can simplify the process of opening a new office and eliminate some of the stress of marketing your business to acquire new patients.
• Hiring staff: Whether you hire an office manager or additional practitioners to offer more services, hiring veterinary staff will enable you to take on more patients and meet increasing demand without sacrificing quality of care. Hiring and training qualified employees takes time and can be costly, and veterinarian practice funding can help you maintain cash flow and normal operations while your new hire settles in.
• Boosting marketing: Demand is increasing for veterinarians, which means it's more important than ever to make sure new patients can find you easily. Invest in improving your website, managing your reputation online, or advertising online or locally to let your area know you're accepting new patients, especially if you've added new services or have expanded to a new location.
• Upgrading technology: Smaller upgrades like new computer systems can help your administrative team work more efficiently so you can take more appointments and focus on providing care. New technologies, such as laparoscopic and laser surgery, diagnostic imaging 3D printing, microchipping, and telemedicine and mobile apps can also help you set your practice apart from the competition, but they can be costly to implement on top of your regular expenses.
• Improving patient services: Convenience is a priority for many patients in 2022. This can take many forms for your veterinary practice, including offering online billing and scheduling, prepayment options, online paperwork, expanded office hours, and additional services. These conveniences may require an investment of capital to implement, but they can set you apart from the competition and help you win new patients.

Veterinarians are often considered to be ideal candidates for funding because of their high earning potential, stable income, and high net worth.

Here's what you need to know before you apply for a veterinary practice loan:

• Most veterinarians graduate with high amounts of student debt-the average student loan for a graduating dentist is just over $183,000. Some lenders will factor your debt-to-income ratio into your loan application, especially if you're just starting up, while others, such as alternative lenders, will focus more on the health and potential of your business. Some lenders, including Bank of America and Wells Fargo, even have partnerships with the AVMA and will balance your student debt against your earning potential when evaluating your application.
• Revenue and billing structures for veterinary practices and delays receiving payments from patients and insurance companies can strain your cash flow, which may make it difficult to get approved for funding. Requesting payments up front, billing patients quickly, and providing payment options like payment plans and prepayment can all improve cash flow.
• You may be asked to provide a business plan that outlines a timeline of your veterinary practice's income for the last 1-5 years, including costs associated with running your practice, an analysis of competition in your area, and how you intend to use and repay your funding. Some lenders, including the SBA, will require this, while others, such as alternative lenders, may not. It's always a good idea to have it prepared just in case to minimize any delays with your application.

You may be a dentist first, but if you own your own dental practice-and over 75% of dentists do-you're also a small business owner. That means that in addition to providing top notch care, you're also responsible for making sure your practice operates smoothly, including administrative work, managing your finances, and planning for growth.

Sometimes, that means researching and applying for small business funding to start your practice, support your operations, or kickstart your growth.

Whether you're looking to open a practice, supplement your cash flow, or expand your offices, dental practices of all sizes and specialties can benefit from an infusion of working capital. Multiple types of business funding are available for dentists in any area of specialty, including orthodontists, dental surgeons, endodontists, dental hygienists, periodontists, and more.

Dental practice loans can be used to help navigate the unique challenges of running a dental practice, including:

• Office space: Dental practices must present a clean, comfortable environment, which means they need an attractive office with well-equipped operatories. This infrastructure can be costly, especially if you're just starting a new practice-the average cost of opening a new practice ranges from $350,000-$500,000.
• Equipment: Dental equipment and diagnostic tools like digital impression systems, electric handpieces, and other essential tools are costly to purchase and maintain, but are essential for providing high-quality care. You may also need to invest in new technologies and equipment if you are looking to expand your services to attract new patients.
• Specialized needs: Dental practices have more rules to follow and more specialized needs than other types of businesses like retail shops. As a result, operating costs are typically higher, and cash flow may be a challenge.
• Competition: Competition is high for dental practices and attracting new patients is an ongoing challenge. Dental practice funding can help you stand out from the competition by enabling you to offer new services such as online scheduling or billing or expanded office hours, improve your online reputation to get more referrals, or increase your advertising to help you attract new patients.

Most dental practice loans are designed for dentists who are preparing to start their own practice, or established practicing doctors who are ready to expand.

Long- and short-term loans for dentists are available, as well as secured and unsecured loans, including:

1. SBA dental practice loans
2. Bank loans
3. Alternative funding
4. Lines of credit
5. Dental practice acquisition loans
6. Equipment financing

Let's take a closer look at these options.

SBA loans for dental practices are not technically provided by the Small Business Administration-the funds are actually disbursed by commercial lending institutions and are guaranteed by the SBA up to 85%. This reduces the risk to the lender, which in turn reduces your rates and fees.

The SBA offers a number of loans for dentists, including 7(a) Guaranteed Loans and 504 Local Development Company Program loans:

• 7(a) Guaranteed Loans: These are the most popular SBA loans for dentists, with the fewest restrictions on how the funds are used, largest loan amounts, longest repayment terms (up to 25 years), and lowest interest rates. Loans up to $5M are available, and funds can be used to meet long- and short-term needs, as well as for expanding or acquiring another practice.
• 504 Local Development Company Program Loans: These long-term, fixed rate loans are administered by Community Development Corporations (CDCs) through commercial lending institutions, with the expectation that the borrower will create or retain jobs or uphold other public policy goals such as revitalizing a business district, rural development, or supporting a minority-owned business. 504 loans are often used to acquire real estate or equipment.

Because they typically have the lowest rates, largest loan amounts, and longest term lengths, SBA loans are one of the most highly-sought loan options for any small business, including dental practices. However, the application process is lengthy (sometimes up to 4 months) and requires extensive paperwork, along with years of detailed personal and business financial information, all with no guarantee of approval.

Commercial banks also offer loans for dentists. Terms and rates are competitive but may not be as low as SBA loans, and will typically depend on the size of the loan and your credit history.

Some banks, including Bank of America and Wells Fargo, offer funding options designed specifically for dentists in partnership with the American Dental Association, such as:

• Interest-only and graduated payment structures for startup loans
• Dedicated project managers for project-related loans
• Commercial real estate loans to purchase or refinance office space
• Equipment loans

Approval requirements are strict but may not be as restrictive as the SBA, especially if you have an existing relationship with your lender. However, similar to the SBA, the application process can take weeks or months with no guarantee of approval.

The anticipated revenue and stability of dental practices can make these businesses an attractive candidate for funding, but it may still be tough to get the funding you need if you are a newer practice or have lower credit. Banks tend to prefer to grant larger loans to large, established businesses, which can make it tough for smaller businesses seeking smaller loan amounts to get the funding they need from a bank that doesn't offer specialized dental practice loan programs.

Alternative funding options for dentists are available from direct online lenders like Bluerock Options®.

Minimum qualification requirements at these lenders are typically lower, with more flexible underwriting requirements and less focus on factors like credit score. Approval is based on the overall health and potential of your practice, which makes more funding available to dental practices, including newer businesses.

With a streamlined application, alternative lenders can also approve your application and deposit funds in as little as 24 hours, making alternative funding ideal for practices that need fast funding to take advantage of short-lived opportunities to grow or cover unexpected costs like equipment repairs.

Loan amounts are typically lower and terms are typically shorter than SBA and bank loans. Because terms are shorter and underwriting requirements are more flexible, rates may be higher; however, it's a common misconception that rates are always higher than other forms of funding-ultimately, rates and fees will depend on the type of funding you're seeking and your business's risk assessment and creditworthiness.

Multiple types of funding are available from alternative lenders depending on your practice's needs, including lines of credit, alternative business loans, real estate collateral loans, and non-loan financing such as merchant cash advances and online invoice factoring. There are no restrictions on how your funds are used.

Lines of credit are available from traditional and alternative lenders, typically for longer terms than short-term funding options like merchant cash advances or invoice factoring.

Lines of credit offer the most flexibility, allowing borrowers to draw and repay from the line of credit as needed. You'll only ever pay interest on the amount borrowed. This makes lines of credit ideal for responding to unexpected expenses, purchasing inventory, repairing equipment, and filling in cash flow as needed.

Dental practice acquisition loans are designed specifically to fund the purchase of another practice, whether you're just starting out and are purchasing a retiring dentist's practice or are considering expanding your existing dental practice.

Multiple types of funding can be used to acquire a dental practice, including SBA 7(a) Guaranteed Loans, 504 loans, traditional bank loans, and alternative funding. Some lenders, including Wells Fargo and Bank of America, offer specific lending programs designed to help dentists acquire an existing practice.

Dental practice acquisition loans are typically for larger amounts, which means you'll likely need to provide detailed financial documentation when you apply, especially if you apply for an SBA or bank loan. Be prepared to provide:

• A purchase agreement
• Current balance sheet
• Year-to-date profit and loss statements
• Federal tax returns
• A schedule of inventory, equipment, and fixtures, as well as other assets when applying

Equipment financing is designed to help finance the purchase or repair of dental equipment, such as dental patient chairs, sterilization equipment, imaging machines, dental operating lights, handpieces, and more.

The equipment often serves as collateral, which may make these loans easier to acquire, especially if you're just starting your practice. Loan terms will typically match the lifespan of the equipment, and a down payment may be required.

The best loan for dentists depends on your goals. The loan, including the amount of the loan and your repayment terms, should serve a specific purpose that aligns with your business goals, such as purchasing new equipment, expanding your marketing and advertising to acquire new patients, or investing in real estate.

For short-term funding, non-loan financing such as merchant cash advances or invoice factoring can provide a fast infusion of working capital that can help you maintain cash flow, cover unexpected expenses, or invest in growth.

For long-term funding, SBA 7(a) Guaranteed Loans offer the best rates and terms, but are the most difficult to acquire. Bank loans are a good alternative, especially if you work with a lender that offers loans designed specifically for dentists.

For fast funding, alternative lenders are always your best bet. These lenders can approve and deposit funds in as little as 24 hours, while SBA and bank loans can take weeks or months to process with no guarantee of approval.

Dental practice funding can help dentists overcome the unique challenges of their field, including:

• Equipment: Dental equipment is expensive, but it's critical to providing top-notch services and patient care. Outdated or broken equipment can be costly to repair or replace, and small business funding such as equipment financing or short-term alternative funding like a merchant cash advance can help you cover these costs. Loans for dentists can also help you invest in new technology to keep your practice on the cutting edge, such as digitized impression systems or digital imaging systems, electric handpieces, and more.
• Insurance and billing: Insurance and billing can be time-consuming and can lead to cash flow challenges if insurance companies or patients are slow to pay their invoices. Short-term funding like online invoice factoring can help fill these cash flow gaps so you can keep operating at your best.
• COVID-19: While dentists have remained fairly stable through the COVID-19 pandemic, practices now need to contend with greater operating costs and PPE requirements, which can put a strain on your cash flow.
• Corporate dentistry: The rise of corporate dentistry presents many challenges to local dentists who may not have the money to compete with the lower prices of these larger-scale organizations. Investing in marketing, improving or adding new patient services, and offering personalized care can help you stand out from the competition.

Dental practice funding can be used for more than overcoming challenges faced by dentists-it can also be used to grow or expand your practice, such as:

• Purchasing real estate: Expand your assets or reduce your monthly expenses by purchasing your current office space, or grow your practice by expanding to another location. Owning your office space also makes it easier to update or renovate your space to accommodate new services or create a more comfortable environment for your patients.
• Acquiring a practice: One of the simplest ways to start or grow a practice is to purchase an existing one, but this method of starting up or expanding often comes with extremely high costs. However, the purchase typically includes the patient roster, as well as all equipment and fixtures, which can simplify the process of opening a new office and eliminate some of the stress of building a brand new patient roster.
• Hiring staff: Whether you hire a practice manager, administrative staff, or additional practitioners to offer more services, hiring staff will enable you to take on more patients without sacrificing quality of care. Onboarding a new employee takes time and can be costly, and dental practice funding can help you maintain cash flow and normal operations while your new hire settles in.
• Boosting marketing: Invest in improving your website, managing your reputation online, or advertising online or locally to attract new patients to your clinic, especially if you've added new services or have expanded to a new location.
• Technology: Simple upgrades like new computer systems can help your admin team work more efficiently so you can focus on providing better care. New technologies like 3D printers, laser dentistry, and emotional dentistry tools can also set your practice apart from the competition, but they can be costly, especially on top of your practice's regular technology expenses.
• Improving patient services: Patients are prioritizing convenience in 2022. This can take many forms for your practice, including offering online billing and scheduling, online paperwork, expanded office hours, and additional services. These conveniences may require an investment of capital to implement, but they can set you apart from the competition and help you win new patients.

Dental practices are often considered to be ideal candidates for funding because of their high earning potential, high net worth, and stable income.

Here's what you need to know before you apply for dental practice funding:

• Most dentists graduate with high amounts of student debt-the average student loan for a graduating dentist is just under $300,000. Some lenders will factor this into your loan application, especially if you're just starting up, while others, such as alternative lenders, will focus more on the health and potential of your business. Some lenders, including Bank of America and Wells Fargo, even have partnerships with the ADA and will balance factors like student debt against your earning potential when evaluating your application.
• Revenue and billing structures for dental practices and delays receiving payments from insurance companies can strain your cash flow, which may make it difficult to get approved for funding. Requesting payments up front, billing patients quickly, and making it as easy as possible for clients to pay can all improve cash flow.
• You may be asked to provide a business plan that outlines a timeline of your dental practice's income for the last 1-5 years, including costs associated with running your practice, an analysis of competition in your area, and how you intend to use and repay the funding. Some lenders, including the SBA, will require this, while others, such as alternative lenders, may not. It's always a good idea to have it prepared just in case to minimize any delays with your application.

The steps you'll follow when applying for a physician business loan will be similar to other industries.

Learn more about how to apply for small business funding

According to the National Retail Federation, there are over 1 million retail establishments in the United States-98% of which are small businesses.

Retail businesses include any enterprise that sells finished goods and/or services, such as salons and spas, specialty stores, clothing stores, convenience stores, furniture stores, electronic and appliance stores, hardware stores, and more. Regardless of what product or service you specialize in, the retail sector is distinguished by a number of unique characteristics, such as:

• Seasonality: Many retailers are dependent on seasonal purchasing patterns and need to stock up on inventory and merchandise before their busy season. Dips in cash flow, including predictable lulls, can make it difficult to purchase the inventory you need when you need it.
• Storefront: Retail businesses need to present an inviting atmosphere in order to draw in foot traffic and encourage purchases. The circumstances surrounding COVID-19 have created further complications as retail businesses must make adjustments to their storefronts to help control in-store traffic and discourage customers from spending more time browsing.
• High turnover: Employee turnover is high in the retail industry, creating cash flow challenges for businesses who must hire and train new employees.
• Technology: Retail businesses need attractive and easy-to-use websites to thrive, as well as up-to-date point of sale systems and secure customer relationship management software.
• Buyer behavior: 73% of consumers are "omnichannel" shoppers who use multiple channels during their shopping journey, such as browsing and reading reviews online before purchasing in-store. Adjusting to this new buyer journey often requires investment in new channels and technologies.

All retailers can benefit from an infusion of working capital, whether you're looking to open a new business, fill seasonal cash flow gaps, stock up on inventory, or expand your existing retail store.

Multiple types of funding are available to help retailers overcome challenges and continue to grow. Long- and short-term funding is available, as well as secured and unsecured loans, including:

1. SBA retail business loans
2. Bank loans
3. Alternative lending
4. Business lines of credit
5. Equipment financing
6. Inventory financing

Let's take a closer look at these options:

The Small Business Administration doesn't provide funding directly-instead, the SBA guarantees loans issued by commercial lenders like banks or credit unions up to 85%. This reduces the risk to the lender and encourages lenders to issue more retailer loans.

Because the risk to the lender is lower, SBA loans typically offer the best terms and rates. However, the application process for SBA funding is rigorous, with strict eligibility requirements and extensive application forms that require years of detailed personal and business financial information. It can take weeks or months to process your application, and approval is never guaranteed. Most applicants are rejected, especially those with low credit, a history of unstable cash flow, or those seeking short-term financing for retail business.

SBA loans are available to both start ups and existing retailers. Several SBA loan options are available, but there are typically two types of SBA loans that are ideal for retailers:

• 7(a) Guaranteed Loans: With loans up to $5 million available, longer repayment terms, and low interest rates, 7(a) Guaranteed Loans are the most popular form of SBA funding. These loans typically require collateral but have the fewest restrictions on how you use your funding. Express loans are also available with a turnaround time of 36 hours or less and typically don't require collateral for funding under $25,000.
• 504 Local Development Company Program: 504 loans are long-term, fixed rates loans that are most commonly used to purchase real estate or equipment. These loans are provided by CDCs through commercial lending institutions and require the borrowing business to use the financing to create or retain jobs or uphold other public policy goals, such as rural development, revitalizing a business district, or supporting minority-owned businesses.

Retailers may also be able to access funding through commercial lenders like banks or credit unions. Terms and rates are competitive, but are not as low as SBA-guaranteed loans and will typically depend on the size of the loan and your credit history. Lending requirements are also generally not as strict as the SBA, especially if you have an existing relationship with your lender, but it can still be difficult for retail businesses to get financing due to the presumed risk level of the industry and factors like volatility and unstable cash flow.

Similar to SBA loans, applications for retail business loans from banks can take weeks or months to process with no guarantee of approval. Banks typically prefer to lend to large businesses or issue loans for larger amounts, making it tough for small retailers or retailers looking for smaller loan amounts to access funding from commercial lenders.

Alternative funding from direct online lenders like Bluerock Options® is easier to acquire than SBA or bank retail business loans. These lenders base your approval on the overall health of your business, with flexible lending requirements that place less emphasis on factors like your credit score. Approval can be made in less than 24 hours, making alternative funding one of the best options for retailer loans. These lenders are also more likely to lend to newer businesses, though some will not lend to start-ups or businesses in operation for less than 6 months.

Because the underwriting process is less strict for alternative lenders, funding from these sources typically has higher rates than SBA or bank loans, often with daily or weekly repayment terms depending on the type of funding you're seeking.

Multiple types of short- and long-term funding are available depending on your medical practice's needs, including lines of credit, alternative small business loans, and real estate collateral loans, as well as non-loan financing such as merchant cash advances and invoice factoring, typically with no limits on how you use your funding.

Business lines of credit are the most flexible form of retailer funding. Lines of credit function similarly to business credit cards but with longer terms and lower rates, allowing you to draw and repay from the line at any time. There are no restrictions on how funds are used and you'll only ever pay interest on the amount you borrow, making lines of credit ideal for unexpected expenses, occasional purchases like inventory or new equipment, or other major expenses that don't require a larger loan but which can still strain your cash flow.

Equipment financing is designed to help retailers purchase expensive equipment such as new computers, point of sale systems, delivery vehicles, specialty equipment, store fixtures, and more.

Lenders will typically supply 80-100% of the cost of the new equipment. The equipment serves as collateral to secure the loan so this type of financing typically has lower rates, and is typically repaid in regular monthly installments with the length of the term dependent on how long the lender anticipates your equipment will last.

Similar to equipment financing, inventory financing is designed to help retailers replenish their stock without putting up additional collateral because the inventory itself is used to secure the loan. Inventory financing typically takes the form of a business line of credit, a short term loan, or a term loan with the specific purpose of purchasing inventory.

The best retailer loan depends on your business's goals. Your funding, including the amount you borrow and your repayment terms, should always serve a specific purpose that aligns with your business's goals, such as replenishing inventory ahead of a busy season, purchasing new equipment or technology that will help you conduct more business, or boosting your business's marketing.

For short-term funding, non-loan forms of financing such as merchant cash advances or online invoice factoring can provide a quick infusion of working capital. These types of short-term financing can be used to purchase inventory, fill in cash flow shortages, or market your business to a wider audience.

For long-term funding, SBA 7(a) loans offer the best rates and terms but are the most difficult to acquire. Retail business loans from banks may be easier to acquire, but can still be difficult due to the perceived risk and cash flow volatility. If neither of these options are available to you, alternative lenders also offer long-term funding like small business loans or collateral business loans.

For fast funding, your best option is always an alternative lender. These lenders can approve and deposit funds in as little as 24 hours, while SBA and bank loans can take months with no guarantee of approval.

Retailer funding can help retail businesses in all specialties overcome the unique challenges of their field, including:

• Seasonality: Retailers are especially susceptible to seasonal fluctuations in supply and demand, leading to inconsistent cash flow that can make it difficult to maintain operations throughout the year or acquire funding needed to navigate challenges or continue to grow.
• Competition: Retail businesses are under constant pressure to attract and retain customers. Setting your business apart from other retailers in your area or big box stores with lower price points often requires a financial investment that many retailers may struggle to make.
• Customer behaviors: Customer behaviors are changing rapidly, especially thanks to the COVID-19 pandemic-59% of customers say they're more likely to continue curbside pickup after the pandemic, for example. Customers want to be able to purchase items online for delivery or curbside or in-store pickup, which requires retailers to have an easy-to-use website and a streamlined order fulfilment infrastructure.
• Inventory: Inventory management-knowing what to buy, when to buy it, and when to mark down or clear out underselling products-is an ongoing challenge for retail businesses. Inaccurate inventory records cost companies on average 10% per year, but inventory management systems can be expensive to purchase and implement in addition to the time it takes to train employees how to use them properly.
• Technology: Technology such as security systems and point of sale software that enables tap payments for credit and debit card processing may require a significant investment in order to keep up with competitors.
• Employee turnover: Employee turnover is especially high in retail. Losing employees and having to rehire and train new staff can drain your business's cash flow.
• COVID-19: Many small retail stores were forced to close or alter operations during the early phases of the COVID-19 pandemic, but fixed expenses like rent and utilities still need to be paid. As businesses reopen, new restrictions like capacity limits and other strict guidelines may continue to impact your revenue while also increasing your operating costs.

Retailer loans can be used for more than navigating the challenges faced by retail businesses-they can also be used to grow or expand your business, such as:

• Upgrading equipment: Up-to-date point of sale and inventory management systems can help you improve inventory control and provide a better experience for your customers.
• Updating your website: Building a website that allows you to respond to customer inquiries and sell orders online both locally and internationally can help you get ahead of your competition during and after the COVID-19 pandemic. Don't be afraid to hire an agency or web developer to help you build or update your website if you aren't confident in your own web development abilities.
• Setting up online order fulfilment: Create a workflow where you fulfill online orders and ship packages to customers across the country or around the world.
• Expanding your space: Expand to a second location, upgrade your current furnishings and fixtures, renovate your existing space to make room for more inventory, or create the facilities you need to offer online order fulfilment and shipping.
• Boosting your marketing: Embrace multi-channel marketing and create offline and online advertising campaigns to reach more people and generate more revenue throughout the year, even during slow seasons.
• Stocking up on inventory: Use your funding to purchase additional inventory for your store opening, stock up ahead of seasonal rushes, or take advantage of bulk discounts for unspoilable inventory.
• Adopting customer relationship management: Invest in a safe and secure customer relationship management (CRM) platform so you can track purchases and preferences and offer personalized promotions and service to inspire loyalty.

Retailers are often considered to be a riskier loan applicant because of factors like seasonality, cash flow shortages, and difficulty predicting demand. Here's what you need to know before applying for financing for your retail business:

• Retail businesses are particularly susceptible to seasonality, economic fluctuations, and volatile demand. This can result in inconsistent cash flow that may make these businesses seem riskier to lenders.
• Your lender may ask you to provide a business plan that explains how you intend to use your retail business loan. Business plans will always be required for SBA loans and often bank loans, but are not always necessary for alternative lenders (though it's a good idea to have one prepared just in case).

The steps you'll follow when applying for a retailer loan will be similar to other industries.

Learn more about how to apply for small business funding

As an alternative lender, Bluerock Options® can approve more retailer loans than traditional lenders. We can also approve your retail business funding faster, with funds deposited in as little as 24 hours. We provide several types of small business funding to help grow your retail business, with funding from as low $3,000 up to $500,000.

Bluerock Options® funds all retail specialties. Our expert Funding Advisors will work closely with you to determine which funding option will help you achieve your goals without compromising your business’s cash flow.