Years ago, retail used to be simple; get a shop, fit a few shelves, stock up and open the doors – but today’s retail landscape is so much more complex.
It’s not enough to have a store in the right location anymore. It’s also crucial that the fit-out is to the right standard and sets the right tone.
Tills aren’t mere cash registers nowadays with fancy EPOS systems keeping stock and managing re-orders and having a price to match.
As if this wasn’t all enough, it won’t have escaped anyone’s notice that the high street is under attack from online retailers, so any business worth its salt will have a professional website build, with full online payment and click and collect functionality.
How retail finance can help
With all the requirements for a successful retail business, any cash that a new business has can quickly get swallowed up.
One of the most appreciated aspects of retail finance is that it allows the business owner to have certainty over their costs and cash flow. A retail finance agreement will feature fixed payments at regular intervals that allow easy planning and clear sight of future commitments.
Retail finance isn’t just for startups
One of the most surprising aspects of retail finance is that the business doesn’t have to be a startup and the assets that are being financed don’t have to be brand new.
Imagine if we take an established shop for instance that may have paid a hefty amount for a fit-out or vehicle and that suddenly finds an opportunity to expand.
The business owner could take out finance on the existing shop fittings, equipment and vehicle which would give the business a rapid cash injection and allow them to take advantage of any opportunities that may present themselves.
Retail finance also allows other forms of credit to be kept open for future use. Financing in this way means that overdrafts and bank loans can still be obtained.
Where to find your retail finance facility
Retail finance products are a specialist form of finance and they generally won’t be offered by your high street bank.
With a background in the sector, a good lender can make sure that an application is not only successful but that funds can be paid out speedily and with a minimum amount of fuss.
Contributor: Nationwide Corporate Finance