There are many benefits to opening up a liquor store, but there are also many challenges to becoming a player in the heavily regulated alcohol industry. Once you’ve invested your capital for a retail space, gone through the tedious process to get your liquor license, and successfully opened your doors, it may feel like the challenges are over! While you should take the time to pat yourself on the back, it’s also important to know that your business will throw you curveballs from time to time as its operating, but for some, small business loans can make things a bit easier. Let’s help you understand how business loans can and can’t help your liquor store business.
Identifying When Small Business Loans Won’t Help
Most lenders, United Business Funding included, will not grant small business loans to start-ups or new businesses because there is not enough financial history in place to assess the risk of the loan. Therefore, we cannot help with startup costs or costs that are part of securing your liquor license. If your liquor license is not granted, you legally cannot open a liquor store. The risk is too high when you’re first starting out, but once you have your feet under you, you can call on us when needed.
Using Small Business Loans Seasonally
Though demand for liquor will always be there, there are times during the year when it picks up, requiring a hefty supply shelf to be ready. Large quantities of alcohol can be pricey, and you may need to stock up for the holiday season when things are a bit slow, so a small business loan can be of great help during times like these. If you need a small cash injection to boost your inventory before the busy season, you can count on us. Whether you’re looking for a few thousand dollars or more, UBF is ready to help you through the cycles of your business.
Recession-Proof Doesn’t Mean Invincible
It’s not uncommon to hear of liquor stores being referred to as a “recession-proof” business, meaning that even in times of economic hardship, people are still going to buy alcohol. While this proves true, it doesn’t mean that liquor stores don’t go through difficult financial times. Whether the hardship is due to building damage, a robbery, or another reason, small business loans can help any business get through a downturn. As long as you have monthly deposits of at least $10,000 in your business accounts and healthy credit, UBF will be there to help.
High Equipment Costs
Sure, most of your inventory is shelf-stable, but many liquor stores have refrigerated sections that require costly equipment. Industrial refrigerators are expensive and may need to be replaced after some time. If you need an equipment upgrade, you can look into an equipment loan with us.
Cheers to Your Future!
At United Business Funding, we love small businesses. Our main purpose is to help small businesses survive and thrive because they are what make our communities so strong. If you own a liquor store and are in need of additional capital, reach out to our team today!