At a glance
- Best for inventory
- Business line of credit up to $1,000,000
- Best for uneven months
- Revenue-based financing
- Best for new stores
- Term or SBA loan
- NexGen amounts
- $10,000 to $20,000,000 across programs
- Approval speed
- Typically 1 to 24 hours for many programs
- Credit
- 650+ on most programs; 500+ for revenue-based financing; 700+ for SBA loans
Retail runs on inventory. You buy product weeks or months before you sell it, and the biggest buying decisions land right before your busiest season. Get it right and the holidays carry your year. Get it wrong and you’re either sold out with customers walking away, or sitting on stock with rent and payroll still due.
This guide covers the best financing for boutiques, specialty shops, convenience and grocery stores, pharmacies, furniture and electronics stores, e-commerce brands and other retailers, plus how to qualify and the questions owners ask us most.
At NexGen Lending, we help retailers nationwide compare inventory, working capital and expansion financing with one application.
Why Retail Financing Is Different
- Inventory ties up cash. Money spent on stock isn’t available for payroll, rent or marketing until it sells.
- Strong seasonality. Many retailers earn a large share of their revenue around the holidays and other peak seasons.
- Thin margins. Retail margins leave less room for expensive financing, so the cost of capital matters.
- Card-heavy sales. Daily card deposits make it easy for lenders to see revenue, which helps with revenue-based programs.
- Location costs. Rent, build-outs and fixtures are major expenses for brick-and-mortar stores.
The Best Types of Financing for Retailers
| Financing type | Best for |
|---|---|
| Business line of credit | Seasonal inventory, payroll during slow months, supplier discounts |
| Revenue-based financing | Retailers and e-commerce brands with steady sales and uneven months |
| Term loans & unitranche debt | Remodels, a new location, a large one-time inventory purchase |
| Equipment financing | POS systems, coolers and refrigeration, shelving, displays, delivery vehicles |
| SBA loan | Buying a store or building, larger expansions, refinancing |
Financing inventory for your busy season
A line of credit is the natural fit for seasonal inventory. Draw before the season to stock up, then repay from holiday sales. NexGen’s line of credit goes up to $1,000,000 for businesses with 12+ months in business, $10,000+ in monthly revenue and a 650+ credit score. You only pay interest on what you draw.
Revenue-based financing for uneven months
With revenue-based financing, payments rise and fall with your sales. That makes it easier to handle the quiet months after a big season. It’s also popular with e-commerce and direct-to-consumer brands, which can apply to partners like Wayflyer through NexGen.
Expansion and remodels
A refreshed store or a second location is a long-term investment. A term loan gives you a lump sum with predictable payments, and an SBA loan offers lower rates and longer terms for established stores. Our guide to financing a second location walks through the budget.
How to Get the Best Retail Financing
- Know your seasonal pattern. Map 24 months of sales so you know exactly when you need cash and when you can repay. Our slow-season cash flow guide shows how.
- Apply before peak buying season. Apply while recent deposits are strong, not after you’ve already spent on inventory.
- Track inventory carefully. A clean inventory report, turnover and margins by category help lenders trust your numbers.
- Run all sales through your business account. Consistent deposits support larger approvals.
- Lower processing costs. Reviewing your card processing can free up cash every month.
- Don’t over-borrow for inventory. Finance what you’re confident you’ll sell, and repay as it sells.
- Compare offers. Thin margins make total cost especially important. See how we compare offers.
What Lenders Look for in a Retail Business
- Time in business, often 12 months or more
- Monthly revenue and consistent card and bank deposits
- Personal credit score
- Gross margins and inventory turnover
- Lease terms and location
- Existing debt and any current advances
Common Questions Retailers Ask
What’s the best way to finance holiday inventory?
A business line of credit usually works best. Draw before the season, then repay as holiday sales come in, paying interest only on what you use.
Can an online store get a business loan?
Yes. E-commerce brands often qualify for revenue-based financing based on their sales data, as well as lines of credit and term loans.
Can I finance store fixtures and a POS system?
Yes. Equipment financing can cover POS systems, refrigeration, shelving and displays, with the equipment securing the loan.
Can I get a loan to open a second store?
Yes. Lenders will look closely at how your first store performs. A term or SBA loan typically covers the build-out, with a line of credit for opening inventory.
What if my credit isn’t great?
With a 500 to 649 credit score, revenue-based financing is the main option, since it leans on sales more than credit. Most other NexGen programs, including equipment financing and lines of credit, require 650+, and SBA loans require 700+. Below 500, NexGen's business credit guidance can help you understand your credit profile and build toward approval.
How fast can a retailer get funded?
Many NexGen programs approve in 1 to 24 hours, which helps when a supplier deal or buying window won’t wait. SBA loans take longer.
Get Your Retail Business Funded with NexGen
- Lines of credit up to $1,000,000 for seasonal inventory
- Revenue-based financing, term, equipment and SBA loans from $10,000 to $20,000,000 across programs
- Card processing to lower your monthly costs
- Nationwide service, from our office in Hoboken, New Jersey
This article is for general informational purposes only and is not financial, legal, or tax advice. NexGen figures come from NexGen’s service pages as of October 2026. Loan terms, rates, and eligibility vary by lender and program and are subject to approval. Availability varies by state.