Tips On Getting Loans As A Merchant

Posted on

Being an online vendor can be at times fun, challenging, and lucrative. But before you can access all of these benefits, you obviously need to find the cash to fund your adventure. Here are some steps to take when you're looking for funding for your project.

Have a Business Plan

Before you ask anyone to invest in your new business, learn how to make a business plan. That will include what you plan to sell and why, quantities and costs of items you need to buy, and the cost of any business incidentals, such as insurance or the costs of marketing. All of these parts of the budget must be considered so that you can be sure you'll be able to keep the business funded until you start bringing in a positive revenue. It may be hard to predict which items will sell if you don't already have a storefront, but you might look at the popular items on your platform to get ideas. The more detail and thought you can add to your business plan, the better.

Consider Approaching Friends and Family

Maybe your first stop in a new merchant venture is to ask friends or family to support your business. You could bring them in as a business partner who will receive some of the revenue if your business succeeds. Having your business plan in hand when you approach friends and family is important to show that you've put in the work and research to make this a great idea.

Traditional Loans

Don't want to approach people you know for money? That's okay. There are other sources of loan money to look into. If you have decent credit, it is worth approaching a lender, like Business Loans of America, for a business loan. Especially if you only need under a thousand dollars to get your business going, you might find that an additional line of credit or small loan is all you need. Your business plan will definitely come in handy here. 

Private and Individual Loan Sources

It's also a good idea to look at private and individual lenders to compare their terms with the banks. Certain private lenders offer loan programs for merchants specifically, with resources to help you start an online store and understand the financial aspects of your new business. Other programs use peer to peer lending so that private investors can back projects and people that they specifically want to help. Consulting multiple lenders is a positive decision before you choose a loan.