Financing for Cigar Shops up to $250,000
Cigars are luxurious tobacco products. However, luxury comes with a cost for cigar shop owners. We’ve helped many cigar shop owners nationwide to get financing up to $250,000.

The cigar and tobacco industry is worth billions of dollars, hitting over $12 billion in the US 2022, and can be a lucrative business from cigar lounges to direct cigar and tobacco sales. There are several financing options for $250,000 available to prospective cigar smoke shop owners. You can take out a loan, commercial cash advance, or line of credit to name a few.
Depending on details such as the financing amount, revenue, and personal credit, we will break down the financing options available.
Uses for Cigar Shop Loans
Expenses for cigar shops can quickly add up. Loans can significantly help with everyday costs to stay running.
You may benefit from financing if you need or are thinking about:
- Opening or changing locations- A loan can help cigar store owners as it takes sizeable funds to rent or purchase a building. Also, if your current lease is expiring and you don’t have the funds for a new shop, financing can conveniently help you during your search and getting established at your new location. Loans also help open new cigar shops or gain more earning potential as your business expands.
- Repairs to maintain the shop properly- Repairs are costly, and business loans can save the day in desperate measures. Loans can cover renovations, painting, and maintenance to stay afloat. While it may be an investment, money spent on necessary business items is worth the hassle to run safely and effectively while attracting customers.
- Hiring- Business loans are outstanding for the hiring process once your doors open. Also, as a stressed-out business owner, delegating duties can benefit your shop with a small business loan.
- Licensing fees
- Equipment and inventory- An equipment loan for cigar shops is helpful for tools and equipment that go south unexpectedly. With proper tools, you can replace broken items and invest in more inventory. Common equipment needed for Cigar shops include:
- Humidors (Adorini, Elie Bleu, Zino Davidoff )
- Cutters (Alaska Bear, Colibri, XIFEI, Xikar)
- Lighters
- POS systems
- Security
- Display and shelves
Keep in mind that lenders may reconsider if your shop is new or if numbers are below $250,000 per year. A cash flow statement of expenses and personal bank statements may also help. In addition, you can receive an equipment loan from bank lenders to smaller lenders online.
What Is a Cigar Shop Loan?
Cigar business loans can come in different forms from secured to unsecured. Lenders can range from traditional brick and mortar banks, online banks, and non-traditional lenders.
Common loan terms include receiving a specific amount of money that can be paid back with payments with a fixed interest rate. The duration of a loan can vary from a couple of years to five years. The lender charges an interest rate which is a percentage of the total loan cost. Basically, the higher the interest rate, the more costly it is to borrow money.

Cigar Shops Funding Options
A small business loan (SBA loan) is an option that the government partly covers for cigar shops. Due to loan qualifications, loan requirement standards are higher. However, small business loans are popular due to their long terms and lower interest rates. Cigar store owners can use SBA loans, also known as Small Business Administration loans, for almost any business-related expense.
There’s also a merchant cash advance or a commercial cash advance option to help newly established or smaller cigar shops. Merchant cash advances are a great option for business owners who need to borrow a lump sum quickly on the same day, as collateral is not required and works differently than a loan. Merchant cash advances are also good for owners just starting out or who have less than perfect credit, as they are more interested in how your business performs.
Equipment loans rely on credit scores. Qualifications for approval may include an updated, thorough business plan to give lenders an overview summary of the equipment you wish to purchase. So if you are in need of a new POS system, lighters, cutters, or humidors– an equipment loan may be a good fit for you.
Lastly, a business line of credit is similar to a business credit card and can allow you to borrow money via banks or credit unions. A credit line is available one payment at a time instead of unlimited access. Interest accumulates similar to a credit card and is an excellent option for emergencies. Like SBA loans and merchant cash advances, lines of credit are flexible in that you can use them for any business-related expense from rent to inventory.
Tips for Cigar Shops Trying to Qualify for Financing
If you’re looking for ways to increase your chances of qualifying for financing, try out the following tips.
- To qualify for a loan for cigar shops, you’ll want to maintain a good credit score, maintain steady revenue from cigar sales, and keep your business plan updated. A score of 750 or is ideal for business owners. Helpful tips before applying include paying bills on time and putting more money down on current credit accounts. In addition, it’s crucial to stop opening credit accounts and gathering essential paperwork.
- Sharing your business plan with lenders can make or break your approval chance. Knowing what you want to use your cigar loan for, how you will pay back the loan, and coming to lenders prepared is crucial.
- Specialized lenders online are lenient with their requirements. The terms and rates may not be as great as a bank lender, but it is an easier route for smaller shops to take.
- Merchant cash advances work with small businesses, an advantage for many cigar shops.To qualify, you must have a working credit card. Although it is more expensive, the chance of acceptance is higher. A high credit score isn’t necessary, but cash flow is harder to track.
- Talk to your accountant or another financial professional for business advice unique to your business plan.
Overall, have a game plan to increase your credit score, decrease debt, and figure out steps as you plan to pay back loans. Share your credentials, experiences, and business requirements with a trusted source or lender, and you will gain knowledge for your future goals and cigar shops.
Other Industries We Finance
Frequently Asked Questions on Cigar Shop Loans
Do you still have questions about taking out a loan for your cigar store? Here are some of the most common questions others are asking.
Opening cigar shops require planning, detailed knowledge, and a hefty start-up fee and working capital. You’ll also have other start-up expenses such as stationery, storage hardware, countertops, cash registers, computers, and the cost of a website. Of course, utility and operational costs are a considerable investment. Operating costs alone average at $19,000 per month, which, of course, vary per location. Lastly, there’s inventory, an essential part of your business that includes a variety of the best-selling cigars and additional tobacco products like vapor pens.
For an average-sized cigar shop, you will spend around $143,000 to get started and there are a lot of deciding factors going into the equation that can easily make it more expensive. Your loan amount should reflect the size of your store, rent or mortgage, cost of paying employees, marketing and advertising, business insurance, and the type, quantity, and variety of products available to customers. Ideally, having a general fund of $500,000 is an excellent number for business owners to rest comfortably, especially in a larger city.
While 750 and higher is in the excellent range, a high rating of around 720 will most likely get you a traditional bank loan, business credit lines, or a small business loan. A good credit score of 680 is a starting point for realistically getting a small business loan. At the minimum, a credit score of 500 will qualify you for merchant cash advances due to their low risk.
When choosing a lender, first research the lending company and look for online reviews. Then, check their Better Business Bureau rating, research whether a particular lender meets your criteria, and seek acknowledgments or rewards. Many lenders are flexible compared to banks but it’s wise to compare lenders and ask questions. Check out their interest rate and what they can offer you and your future cigar shop.
Yes, a loan can help the hiring process. A loan can lengthen as you pay an employee in your cigar store. The loan works immediately after going through, but it may take a long time for the lender to see a return. Therefore, your business can thrive without using a lot of funds. Overall, a loan can make the hiring process easier while benefiting smoke shops financially.

Funding Your Business Is Our Business
Cigar Shop Loans Can Help Your Business Grow
Loans can certainly help grow your smoke shop. There’s tremendous growth potential in the cigar shop market and tobacco industry, and while selling cigars can be expensive, there are tools and resources to help.
Owning small businesses, let alone a cigar shop, can come with financial challenges, but that’s where business financing such as loans, lines of credit, and nontraditional lenders like merchant cash advances come in handy. Be sure to conduct thorough research to find the best option for your cigar shop!
Does Your Business Need Funding Today?
There’s no fee or obligation, and it won’t impact your credit.
$5,000 – $1,000,000
Talk to a rep at (855) 433-8641
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