It requires a lot of working capital, enough inventory of quality jewelry, and careful planning to run a successful jewelry store. In the last few years, the cost of precious metals and gems has gone up significantly. It is also expensive to maintain an e-commerce store for online sales as well as lease a retail store for displaying your precious stones. Whether you will be using jewelry from other artists or making your own, you may need a merchant cash advance or other types of financing to support your business with adequate inventory.
Research by McKinsey reveals that the jewelry industry is still one of the most robust and least risky sectors to conduct business. Yearly growth is projected to be 5-6 percent, while the annual revenues are estimated at $250 billion by 2020. Making your jewelry brand robust in your market can aid you in gaining a foothold in the rising industry. Picking the proper platform for promoting your products to your market is essential to your success. All these need money that you might not be able to get through a traditional business loan.
The 2007 recession made a big impact on the sales of numerous small business owners. Those who had jewelry stores at this time were forced to liquidate most of their inventory to recover losses and pay debts. You could be rebuilding your jewelry store and facing trouble acquiring small business loans due to below average credit scores and late payments. But you can still finance your inventory through other means, like merchant cash advances.
A majority of small businesses receive credit card payments through a merchant account. Since a jewelry store sells items that are high ticket, credit card payments are the ideal way for clients to pay for their purchases. A merchant cash advance operates like a loan whereby the security is the average daily sales. The loan is repaid through deducting a portion of daily sales until the amount is cleared.
A jewelry store will benefit from a merchant advance in numerous ways. First, there is no requirement to have a particular amount of jewelry in the inventory. There is also no risk of losing the inventory as collateral. Second, terms of repayment are not so stressful to manage since they depend on daily revenue, and not a set amount. Third, you can save on cost since there is the choice to clear the cash advance without any penalties of early payoff. Fourth, it presents a ready source of finance that can be used repeatedly in the foreseeable future with a lender you trust. Fifth, merchant cash advances fail to incur high-interest rates or fees, like some other financial services. Sixth, in the majority of the cases, your merchant account history is utilized in the place of your personal credit history. Hence, your low credit score will not affect your chance to get this small business loan.
Jewelry stores can get a merchant cash advance in financial firms, like United Capital Source. Lenders have various merchant cash advance programs that depend on the revenue of your business, credit card payment frequency, and transactions’ value. United Capital Source has many programs, including merchant cash advance programs for female business owners. The lender can match you to your suitable program before presenting you with numerous options from which to pick.
The approval process of acquiring a merchant cash advance is simple and involves minimal paperwork. You can get your loan in time to grow your jewelry store inventory. Repayments will start when you begin making revenue and processing credit card payments.
With a merchant cash advance, you don’t have to worry about your favorite clients missing their jewelry because you ran out of stock. Get a merchant cash advance and grow your business.