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.