Pet Store Business Loans up to $400,000
Pet stores are essential. After all, one has to provide for man’s best friend. Pet store business loans help small business owners gain the financing they need. Apply now to see if you qualify for up to $400,000 in funding within two business days.
Did you know that Americans have adopted millions of pets over the years? As a result, there are more pet owners than ever, and pet parents are spending significant money on their furry companions.
A 2017-18 study found that 38.4% of United States households surveyed owned a dog, and 25.4% had a cat. Bird and horse owners represented a much smaller percentage.
With owners spending more on high-quality foods and pet care items, there is a strong potential for continued growth. Seeing as dog owners alone spend about $1,480 on their pets annually, offering a great experience and the best pet care products for owners that inspires loyalty can pay off.
Obtaining a pet store business loan or another type of financing is one of the first steps you should take if you are thinking about launching a business in the pet store industry.
What Are Pet Store Business Loans?
A business loan is a financial product that gives your pet care store access to capital. You can spend the funds to grow your inventory, market your business, cover operating expenses, or even purchase a brick-and-mortar store.
A pet store loan aims to help you grow your business and generate a higher return on investment (ROI).
Uses for Pet Store Business Loans
A pet store can use financing in many different ways depending on its needs.
Launching an Online Business- With thousands of pet-related businesses in the U.S., people are seeing an increasing number of online pet stores. Pet owners often turn to online shopping for convenience, but the internet is also a great way to access a larger selection of cat and dog products, wholesale pet supplies, and other popular pet supplies.
A pet store business loan can help you launch a successful online brand by giving you access to the capital needed to create a website, buy inventory and bulk pet supplies, invest in online ads, and get help from an order fulfillment service.
Taking Over an Existing Business- Unfortunately, 20% of new businesses fail within a year. These failed businesses can become an opportunity for entrepreneurs looking to launch a new project.
A pet store business loan can allow you to buy a failing business or purchase its inventory. You’ll have enough capital to make a lump sum payment to the previous owner and make a few investments to improve the business they are selling.
Expanding an Existing Pet Store- A business loan can open new opportunities for you if you have an established pet store.
You could use a business loan to expand your inventory and work with high-quality suppliers, use the funding to hire a pet nutritionist, and launch a pet nutrition consultation service or even classes to teach pet owners about raw diets.
Pet Store Financing Options for Business Owners
You’re probably familiar with small business loans. Lenders offer a wide range of products for your small business pet store, with SBA programs accounting for more than $416 billion distributed to small businesses in 2021 alone.
SBA-backed pet store loans make financing more affordable for small businesses, but they can be challenging to obtain due to strict credit requirements. Nevertheless, they remain an attractive option since small businesses that traditional banks would reject can still qualify for financing under these programs.
New business owners might be easier to qualify for a non-SBA business loan or even a personal loan if their business credit history is nonexistent.
Small business loans typically require collateral and translate into a long-term financial obligation with fixed monthly payments.
A small business owner looking for more flexible financing should consider merchant cash advances. A merchant cash advance gives you access to a large lump sum upfront. You can use the capital to acquire inventory, promote your business, and cover operating expenses.
Instead of making fixed monthly payments, you will pay a certain percentage of your daily sales. A merchant cash advance results in a slightly lower profit margin for your sales, but you do not have the obligation of making a fixed monthly payment if business is slow.
An unsecured loan can be a good option if you have a decent personal or business credit score. You should expect to spend more on interests and fees since the lender is taking a higher risk, but it is a good way to obtain capital if you are without collateral.
A bridge loan can be a viable option for your short-term financing needs. For example, business owners usually apply for bridge loans to cover expenses while waiting to receive capital from another financing product. You can use a bridge loan to keep items in stock and cover ongoing expenses like payroll while waiting for the funds from the loan.
Tips for The Pet Store Trying to Qualify for Financing
There are a few tips pet store owners should know when applying for financing:
- A strong pet store business plan is essential. You will need to demonstrate how you plan on increasing revenues and making loan payments on time.
- Having a backup strategy can help convince a lender. You can, for instance, show that you have enough cash reserves to cover loan payments for a few months.
- Take the time to review loan requirements and compare different lenders.
- You should have a detailed plan for spending your funds and a precise idea of how much you need to borrow for your pet store project.
- You also need realistic growth projections and a target date for when your small pet stores will become profitable. If possible, use data from similar businesses.
- Come up with a realistic number for how much you can afford to spend on monthly loan payments. What kind of sales volume will you need to achieve to meet this target?
- Your bank balance is one of the factors lenders will consider. Therefore, focus on increasing your cash reserves before applying for financing.
- You can strengthen your application by bringing in a co-applicant.
- Consider using personal assets as collateral if your animal supply store has limited assets. Applying for a personal loan can also be an alternative if you have a strong personal credit score and a limited business credit history.
- Consider using a mix of funding options. You can finance your project with a small loan, a credit line, a cash advance, personal savings, and help from investors. It’s easier for a pet store owner to qualify for financing if asking lenders to take a smaller risk.
Benefits of Pet Store Financing
Securing financing for your pet business ensures that you can meet customers’ expectations and keep up with the latest trends in this market.
Over the past decade, consumer behaviors have evolved regarding pet products. Many pet parents see their companion as a member of the family. You’ve probably noticed that the term “pet parents” has replaced the concept of ownership.
People consider their pets as family members with their own needs. Therefore, product quality is vital, translating into a larger upfront investment to build an inventory with high-quality food, pet care items, and quality toys.
Seeing pets as family members also means consumers are more likely to spend money on services for the animal, including grooming, training, boarding, doggy daycare, and pet spa experiences. Financing can help pet stores explore these opportunities by renovating their stores to create new experiences.
Consumers are also expecting a more extensive product selection. Dogs and cats remain the top pets, but the 2017-18 study linked at the start of the article found that 3.5% of the households surveyed owned a fish or horse.
The pet market is also a competitive space with a few major players. A handful of online pet retail brands dominate search results, and the top two brick-and-mortar chains, PetSmart and PETCO, by far have the most locations.
With proper financing, new stores can establish their pet stores online through ads and other marketing strategies, and brick-and-mortar stores can secure a good location.
Frequently Asked Questions on Pet Store Business Loans
Here are common questions about pet store business loans.
It depends on what your business project is like. A brick-and-mortar store will cost more than an online store. However, with a small product selection, it is possible to launch an online business for anywhere between $1,000 and $100,000.
You should count on spending at least $30,000 for a brick-and-mortar project if you are renting a small retail space.
No, you can secure financing without collateral. For example, you can apply for an unsecured loan or finance your project through a merchant cash advance if you do not have enough assets.
It can be challenging to secure financing for new businesses since you will not have much of a business credit history. SBA loans will be difficult to obtain due to their credit requirements.
Your best option is to look for a lender that offers bad credit loans or loans for businesses with a limited credit history. You can also consider a cash advance as an alternative or consider bringing in a partner with a strong personal credit score.
If you need funding fast, your best option is to apply for a bridge loan or open a business line of credit. Some business lenders can send you funds within a week or two, but you will have to wait longer for a business loan from a traditional bank.
Credit score requirements vary from one lender to another. You will need a score of 720 or better to qualify for financing through a traditional bank. You can get a merchant cash advance if your score is 500 or higher.
Pet Store Business Loans Can Grow Your Business
There are some exciting opportunities to explore in the pet industry and animal supplies stores. Americans are adopting more pets and spending money on these animals that they often consider family members.
As a business owner, you can meet consumers’ expectations and stand out from the competition by leveraging a pet store business loan to purchase high-quality products for your inventory, offer a unique experience, and promote your business.
Don’t Allow a Lack of Funding
to Hold your Business Back
It’s Time To Move Your Business Forward!