What Can be Done With Liquor Store Purchase Financing?

Liquor stores are considered risky businesses by conventional financing institutions. They are, therefore, turned down from receiving cash advances. Merchant cash advances, on the other hand, do not discriminate applicants based on the industry in which they run their business. The only criteria that merchant cash advance depends upon is the previous sales statements of the applicant. These statements are used to make an estimate of expected future sales as the repayment is dependent on the sales made. This article details what one can do with liquor store purchase financing.

Purchase essentials that are often costly

Running a liquor store is not as easy as it sounds. All the essentials required to run a liquor store are expensive. From the commodity (liquor) to the setting (refrigerators, couches in the waiting lounge, display cabinets), everything is expensive. Given the high cost of operation, resorting to merchant advance as a means of small business finance for liquor stores will help cover these high costs until enough revenue is generated to pay for the costs.

Payment of legal fees for obtaining licenses

One cannot run a liquor store without appropriate licenses. Moreover, every liquor store is also subject to the specific laws in the State it is located in. These laws have to be complied with to maintain the legality of the store. It is wise to hire the services of a legal professional to ensure that compliance is complete. These costs are not repeated frequently and can be covered by liquor store purchase financing options like merchant cash advance so that the working capital does not run dry.

Cover costs of promotional events

Hosting promotional events are the best way to secure more customers to a liquor store. These events can be spaced out across the calendar to improve sales. Attractive decorations, colorful fliers, free samples, etc. are tried and tested methods of garnering customer interest and increasing the footfall in the store. The costs for these events can be covered by means of small business financing for liquor store like merchant cash advance.

3 Things To Educate Yourself On When You Purchase A Liquor Store

A liquor store is a good investment that will provide the owner with a steady income. Liquor store purchase financing solutions can help potential owners to procure the capital required.

Educate yourself on the licensing regulations

The rules that govern liquor stores are different in different cities and states. Educate yourself on the various regulations, licensing regulations. Understand the rules that must be complied with and ensure timely compliance to avoid penalties. The capital required for such compliance can also be sought through liquor store purchase financing. All the information pertaining to rules and regulations can be found on the government website of the Alcohol and Tobacco Trade and Tax Bureau (TTB). One can use this information to verify compliance or information relayed by the seller or the broker.

Educate yourself on the operational expenses

The operational costs are often overlooked while calculating the capital investment required. This can prove detrimental to the business and create cash crunches right as the store opens. Operational expenses like inventory expenses, payroll expenses, expenses for advertising and implementation of marketing strategies, expenses for improvements in the store or renovations, etc. should be calculated. An estimate of all of the above operational costs and the cost of purchase should be added up to calculate the cash required throughliquor store business financing.

Educate yourself on customers and competition

Before you even begin to run the business, analyze customer preferences and study the competitors in the market. Use the cash advance obtained through liquor store business financing to provide to customers, more than the competitors. Ensure that everything in the store caters to the customer preferences observed in the market. This will help you hit the ground running as you open a liquor store.