I’m sure you’ve heard, but money makes the world go around. If you’re a bike shop owner, you know there’s always something you have to be spending money on. Hence, we’re going to discuss 4 potential ways to get working capital for bike shops.
Each option has their own unique set of advantages and disadvantages. Let’s dive in.
First Way to Get Working Capital for a Bike Shop
The first way you can get working capital for your bike shop is by using revenue based working capital. The nice thing about this kind of bike shop working capital is the speed and ease at which you can get your funding. The process is super easy and it’s explained below. Bike shop owners can access this type of working capital in as little as 1-3 days.
Revenue Based Working Capital for Bike Shops process and Basic Qualifications:
- Complete a one page application.
- Submit the application and 3 months most recent bank statements for the business to your working capital specialist at TheBroker.Finance.
Basic Qualifications:
- While each lender or debt source varies, we can work with bike shop owners with credit scores as low as 500.
- Start ups are OK also. You may only need to be in business for just 6 months to get this kind of working capital.
- Some lenders have requirements in terms of the monthly revenue. It varies widely. Some want to see $10k, $15k, $20k, or even $25k or more in average monthly revenue. At the same time, some micro lenders will accept just $3k plus in average deposits.
- Most lenders want to see a business bank account, BUT one micro lender that I know of will accept personal accounts.
There are other qualificatsion and each lender is different for this type of working capital, but these are the basics.
Pros & Cons of Revenue Based Working Capital
Pros:
- These short term funding solutions can get funded quickly
- There is very little paperwork compared to other business loans
- When you take revenue based working capital for your bike shop, there will be NO liens on any of your equipment, real estate, receivables, etc.
- This type of funding will not show up on your personal credit report.
Cons:
- Repayment interest rate will be higher than a bank loan (which many businesses don’t qualify for anyhow). However, since they are short term, your overall interest may not be much higher than a longer term bank loan with a lower interest rate.
- Payments are debitted either daily or weekly. Some view this as a con, but some also see it as easier to manage than one LARGE payment monthly.
Second Way for a Bike Shop to Get Working Capital (Business Line of Credit)
We have multibple business line of credit options available for many business types. Each lender has different qualifications for their business line of credit. Below, we’ll discuss several potential options.
Business Line of Credit option 1
This option is probably the most lax in terms of the guidelines for getting a business line of credit. Here are the basic guidelines and bullet points:
- 625+ FICO
- 1 year time in business or more.
- $200,000 or more in annual revenue
- US based businesses only