Merchant Cash Advances » Cigar Store Business Advance

Cigar Store Business Funding

Diverse selection of cigars showcased in cigar shop offering wide range options enthusiasts.

By Richard Wilson

Last Updated on

Estimated read time: 7 minutes

If you operate a cigar shop business and need funding to enhance your premium cigar inventory, improve your cigar lounge, or expand your online cigar retail offerings, MCashAdvance cigar shop business advances are the swift solution you’ve been searching for.

We offer cigar shop business advances ranging from $5,000 to $900,000 to help grow your cigar retail enterprise. We fund all types of cigar businesses, including premium cigar shops, lounges, and online cigar retailers.

Securing financing from banks for cigar shop businesses can be a lengthy and challenging process, often taking weeks or even months to obtain, with strict approval requirements, extensive paperwork, and a preference for businesses with perfect credit.

An advance from MCashAdvance for cigar shop companies offers simpler approval, no paperwork or collateral, the possibility of receiving funds within 24 hours or up to 3 days, and accepts poor credit scores with no hard credit check that won’t impact your credit score upon application.

Get a Cigar Shop Loan Alternative Now

Advance Amounts:

$5,000 – $900,000

Factor Rate:

1.1– 1.5

Repayment Terms:

3 – 36 months

Funding Time:

1-3 days

Applying is easy, free, and won’t impact your credit score.

Get the cigar shop financing you need today.

What is a Cigar Shop Business Advance?

A cigar shop business advance is a type of merchant cash advance (MCA) created for cigar shop businesses, including premium cigar shops, lounges, and online cigar retailers.

Your cigar shop business sells a portion of its revenue to MCashAdvance in exchange for an upfront lump sum of funds called a cash advance.

In exchange, we will deduct a small percentage of your daily sales revenue until the advance is fully repaid.

Emergency Funding for Cigar Store Businesses

In the cigar industry, financial needs are often unique to the nuances of cigar retail, lounges, and the overall experience offered to aficionados. A cash advance for cigar store businesses provides targeted financial support, quickly accessible and tailored for the specialized requirements of cigar sales and lounges.

Cigar Store Financing for Any Purpose

Here are 17 common ways a cash advance can be utilized in your Cigar Store:

  1. Premium Cigar Inventory Expansion: Use the funds to enhance your selection with rare, premium, and imported cigars, catering to connoisseurs.
  2. Walk-In Humidor Installation: Invest in constructing or upgrading walk-in humidors to ensure optimal storage conditions for your inventory.
  3. Cigar Lounge Ambiance Enhancements: Direct the capital towards creating a luxurious and comfortable lounge area, complete with leather seating, ambient lighting, and refined decor.
  4. State-of-the-Art Ventilation Systems: Finance the installation of advanced ventilation and air purification systems to maintain a pleasant environment in the lounge.
  5. Cigar Tasting and Pairing Events: Use the advance to host exclusive cigar tasting events, pairing fine cigars with spirits or gourmet foods to enhance customer experience.
  6. Custom Cigar Label Creation: Invest in developing custom cigar labels or offering personalized cigar banding services for special occasions or corporate gifts.
  7. Digital Inventory and Sales Systems: Direct the funds to implement digital inventory tracking and POS systems tailored for cigar retail operations.
  8. E-commerce Platform for Online Sales: Use the capital to establish or enhance your online storefront, allowing customers to browse and purchase cigars remotely.
  9. Cigar Accessories and Merchandise: Finance the expansion of your product range to include high-quality cigar accessories, such as cutters, lighters, and humidification devices.
  10. Employee Training in Cigar Expertise: Invest in specialized training for your staff to become knowledgeable about cigar types, origins, and proper storage and handling.
  11. Membership Club and Loyalty Programs: Use the funds to develop membership or loyalty programs, offering exclusive discounts, events, and early access to new releases.
  12. Cigar Education Workshops: Direct the capital towards educational workshops and seminars on cigar history, cultivation, and craftsmanship to engage your clientele.
  13. Branding and Marketing Initiatives: Finance targeted marketing campaigns to build brand recognition and attract new customers to your cigar lounge and store.
  14. Mobile Cigar Lounge Setup: Use the advance to create a mobile cigar lounge setup for events, weddings, and corporate gatherings, expanding your service offerings.
  15. Compliance and Legal Advisory: Invest in legal advisory services to navigate the complex regulations surrounding tobacco sales and lounge operations.
  16. Cigar-Related Art and Decor: Direct the funds to acquire cigar-themed art and decor to enhance the aesthetic appeal of your store and lounge.
  17. Sustainable and Organic Cigar Lines: Finance the introduction of sustainable and organic cigar options to appeal to environmentally conscious smokers.

Cigar Lounge Advance Example

Let’s say you need a $20,000 merchant loan advance to buy climate-controlled cigar humidor cabinets for your cigar lounge. If you are approved for $20,000 and receive a funding offer with a factor rate of 1.2 and a holdback percentage of 15% of daily credit card sales, your total repayment amount will be $24,000 (Total Repaid Amount).

DetailsExample
Advance Amount$20,000
Factor Rate1.2
Avg Monthly Credit Card Sales$18,000
Holdback Percentage15%
Daily Credit Card Sales$600 per day (approx.)
Daily Payment Amount$90 per day (approx.)
Repayment Term (in days)Approximately 267 days
Repayment Term (in months)Approximately 8.9 months
Total Repaid$24,000 (Total Repaid Amount)
Estimated APRCalculating APR for MCAs can be complex, but it’s typically higher than traditional loans

Cigar Store Funding Eligibility

To be eligible for funding from MCashAdvance you must meet these 5 criteria:

  1. Your cigar shop must have been operational for at least 6 months.
  2. Your cigar business should be generating a minimum of $100,000 per year in revenue.
  3. As the cigar shop owner, your personal FICO score needs to be 550 or higher.
  4. Your cigar lounge must utilize a business checking account.
  5. You, as the cigar business proprietor, must be over 18 years of age and a U.S. citizen.

How to Get a Cigar Store Advance from MCashAdvance

To get an advance for your cigar store business from MCashAdvance, follow these 5 steps:

Step 1: Begin Online Application: Click Apply for an MCA to begin.

Step 2: Fill in Your Details: Provide information about your cigar store and some personal details as the owner of the store.

Step 3: Submit Bank Statements: Upload the last three months’ bank statements of your cigar store.

Step 4: Await Review Process: One of our underwriters will review your cash advance application to determine funding eligibility.

Step 5: Receive Offer and Funding: Once you get a funding offer, review it. If it suits your business needs, accept it, sign the MCA agreement and the funds will be deposited into your business account.

Get a Cigar Store Business Advance Now

or learn more about merchant cash advances

Cigar Store Funding FAQs

Can cigar shops get an SBA loan?

Cigar shops may not typically qualify for SBA loans, as tobacco-related businesses are often considered restricted industries by the SBA. It’s advisable to explore alternative financing options.

Can cigar shops get invoice financing loans?

Cigar shops, like other retail businesses, usually don’t issue invoices in a way that makes them eligible for invoice financing. This financing method is more common in B2B industries.

Can banks lend to cigar shops?

Banks usually demand that cigar shops have a minimum of two years in operation, a FICO credit score of 680 or higher, three years of cash flow records, and a clear business plan detailing fund usage. Meeting these criteria raises the chances of bank approval. If you can’t meet these requirements, consider exploring alternative lenders like MCashAdvance, which may offer more favorable eligibility criteria for obtaining financial support for your cigar shop.

How does cigar shop equipment financing work?

Cigar shops may not typically qualify for equipment financing due to the nature of their business. It’s advisable to explore alternative financing options.

Can cigar shops get business lines of credit?

Cigar shops may secure a business line of credit if they meet specific qualifications. However, lenders’ criteria for the cigar shop industry may vary. It’s recommended to explore financing options tailored to the unique needs of cigar shops.

About the Author: