You don’t have to be a business financing expert to envision the tremendous amount of working capital required to run a jewelry store. As if the materials used to make their products weren’t already expensive enough, their costs have risen over the past few years. Profit margins, however, have reportedly decreased, especially on diamonds.
Some stores attempt to offset these obstacles by doing more repairs and custom work, which come with their own costs. Others order more or less of certain items. While jewelry does maintain its worth longer than conventional retail products, anything loses value when tastes change. It is also easy for jewelry stores to order too much inventory at the wrong time and ultimately reduce working capital.
Digital marketing has become increasingly important for jewelry stores as well. Customers must be able to browse products in detail on user-friendly websites and discover the products they’ve been looking for on social media. Long-term marketing campaigns would probably be a lot easier to finance, were it not for the sporadic, seasonal nature of jewelry sales. Most stores perform most of their sales during peak seasons (holidays, weddings) and are prone to unexpectedly busy periods due to birthdays or anniversaries.
United Capital Source has many years of experience facilitating Small Business Loans for Jewelry Stores. We have access to all types of business lending products. Contact us today for your FREE business funding consultation!
Since customers often purchase jewelry products with debit or credit cards, we usually recommend a merchant cash advance for jewelry stores. This type of working capital loan is paid back via a fixed percentage of future debit and credit card sales. Significant payments are only made when a significant amount of revenue is being generated from these transactions. As long as you show substantial debit and credit card sales, occasional dips in revenue will not impact your application.
The merchant cash advance payment system makes it a fabulous tool for financing investments amid tumultuous cash flow. Many borrowers can purchase inventory and launch marketing campaigns during slower periods, even though they won’t see any additional revenue for several months.
One of our clients owns a large jewelry store on 47th Street that specializes in gold products. He contacted us shortly before an event in which wholesalers worldwide come to sell jewelry to retail store owners. Having a large amount of cash would allow the client to purchase gold at a deep discount instead of finance it. We provided a $65,000 merchant cash advance that ultimately increased the client’s revenue by 25% and, thanks to the use of cash, drew a large profit.
We are aware that many jewelry stores are owned by women. Since women usually start businesses with less working capital than men, they have a much harder time growing their businesses. This is why United Capital Source has access to small business loans for women looking to overcome natural but unfair disadvantages.
With these small business loans, obstacles like limited funds, poor credit history, or your business’s size will no longer stop female borrowers from accessing the amounts and terms required to stay competitive in this chaotic industry. Apply now to see how much you qualify for!
|LOAN TYPES||MAX AMOUNTS||RATES||SPEED|
|Merchant Cash Advances||$5k – $1m||Starting at 1-6% p/mo||1-2 business days|
|SBA Loan||$50k-$5.5m||Starting at Prime + 2.75%||8-12 weeks|
|Business Term Loan||$10k to $5m||Starting at 1-4% p/mo||1-3 business days|
|Business Line of Credit||$1k to $1m||Starting at 1% p/mo||1-3 business days|
|Receivables/Invoice Financing||$10k-$10m||Starting at 1% p/mo||1-2 weeks|
|Equipment Financing||Up to $5m per piece||Starting at 3.5% (SBA)||3-10+ business days|
|Revenue Based Business Loans||$5K – $1m||Starting at 1-6% p/mo||1-2 business days|