Summer has arrived, and sporting goods stores must be on high alert. Customers come in for cleats, gloves, balls, bats, and other sporting goods. They’ll be looking for footballs and hockey sticks in no time.
There is no offseason for sporting goods stores; they continuously meet customer requests and purchase inventory for each new season. Like any other small business, Sporting goods stores require funding to keep up with the constant demand they experience daily.
The industry is booming.
Since 2002, consumer sales at sporting goods stores have increased every year, reaching $62 billion in 2013. However, even if the industry is strong, obtaining corporate funding isn’t easy.
Banks are still wary of lending to any small business, let alone a sports store, and have tightened their rules due to the Great Recession.
Many firms are struggling to keep up with the demand for viable collateral, a good credit score, and a strong history in the financing process. So, if you do not qualify for a bank loan, what can your athletic goods store do? Alternative lending ConsolidationNow is the answer.
What is alternative lending, and how does it work?
Alternative lending is a new type of financing that arose after the Great Recession.
Small businesses needed somewhere to turn when regulators forced banks to tighten their rules, and alternative financing has been there ever since.
Alternative lending aims to get money to small businesses as rapidly as feasible. Your credit score isn’t a big deal with alternative lending; there’s no need for collateral, and you can get accepted and obtain the money in a matter of days.
A merchant cash advance is the most common alternative finance for business owners.
A merchant cash advance is a loan secured against your company’s future credit and debit card receivables. A tiny portion of your credit/debit card sales is deducted until you pay off the advance every month.
A merchant cash advance aims to cooperate with your cash flow so that the lender will take less during sluggish months. The lender will accept more during good months. But what are your alternatives if you’ve received funding from an alternative lender? How may alternative funding help you grow your business?
Getting inventory:
Sporting goods retailers are inventory-based businesses that must maintain fully stocked shelves throughout the year. You should be preparing your business for the fall while also keeping up with what customers desire in the summer, such as soccer and baseball equipment and golf equipment. If your store doesn’t offer a golf simulator or a practice space for golfers to practice their swings, this could be a good addition.
Special promotions:
Have you ever wanted to hire a local professional athlete to come to your neighborhood for an autograph signing and meet-and-greet with fans? Professional sportspeople frequently visit sporting goods stores, and these events can help raise not only sales but also exposure to your store and brand. You would think it’ll be tough to get some of these athletes to join, but many have community duties and are usually eager to do so. Not to mention that they are compensated!
Renovation and expansion:
Alternative financing can also help you with your remodeling plans. You can utilize the money you earn from alternative lending to expand your current store or create a fresh new one.
All small businesses outgrow their initial space and feel compelled to move on to something bigger and better.
Marketing and advertising:
At all times, getting the word out about your athletic goods store should be a top priority.
Social media platforms such as Facebook and Twitter are an excellent (and inexpensive!) method to market your business. Visuals appeal to customers, and social media allows you to showcase your products and equipment while also being creative. Radio, print, and television are all good options for traditional advertising. While social media is all the rage these days, traditional advertising is still alive and well in the corporate sector.
Conclusion
Alternative lending has established itself as a trustworthy source of capital for small firms all around the United States. If you’re a sporting goods store owner who needs some extra cash but can’t get it from a bank, alternative lending could be the answer. Make sure you’re doing everything you can to keep up with the large companies in the athletic goods sector.
