Merchant funding can help you do more of what you already do well — but faster, and on a larger scale. It’s a way to grow sustainably in ways you already know work, without being limited by your cash flow.
But independent retail and product businesses have a tough time when it comes to getting funding for their business, with time-consuming applications and over-inflated rates. In fact, a huge 69% never receive the funding they want.
But first — what is merchant funding?
Merchant funding is a more flexible alternative to traditional bank loans. Rather than applying for a lump sum of money, with merchant funding you typically receive your funding on a monthly basis.
This effectively gives you an advance on some of the costs you face upfront each month, which retail and product businesses, as well as restaurants, often find particularly helpful.
👋 It’s worth noting at this point that Grow with CREOATE is available either as an ongoing or one-off payment; either way, you’ll find the application process a lot simpler and faster than a traditional loan.
6 Ways merchant funding can help
Wondering how you’d use extra funding in your retail or product business? Here are six popular ways businesses use their merchant funding to grow.
1. Purchasing inventory & supplies
87% of the wholesalers and retailers using Grow with CREOATE use it for buying more stock and supplies. Whether for one-off bigger stock ups, or smoothing out month-to-month cash flow, it's where merchant funding can really come into its own.
Use extra finance to stock up on your bestsellers ahead of peak spending seasons, or to craft a successful product launch. By buying in larger quantities, you can also negotiate better deals from your suppliers, reducing your cost per unit, and maximising your profit margin. As a retailer, having finance available also allows you to tap into trends in record time.
📚 Bookmark for later: Best Inventory Management Software for Retail Businesses
2. Attending trade shows
As a wholesale brand, trade shows are a great way to make in-person business connections and secure advance sales. But exhibiting at a trade show can cost a lot once you factor in the cost of setting up an eye-catching stand, transporting everything, and taking time away from your day-to-day operations. Even the cost of attending trade shows as a buyer can quickly add up when they’re far from home.
But for brands who’ve started to see some wholesale orders, or independent retailers who have found their feet, attending a trade show is often a natural next step for growth. And some extra available funds means they can:
- Set up a stand they’re proud of
- Unlock new stockist connections, and fulfil their orders quickly
- Take advantage of bulk discounts from suppliers in advance of attending
📚 Bookmark for later: How to Get the Most Out of Attending a Trade Show
3. Get the most out of marketing
Paid ads perform better when you work at scale. SEO needs upfront investment to pay off down the line with free traffic. Placement in magazines or on billboards, or partnerships with influencers, can require a serious upfront outlay before you see any return.
Extra funds can help you by:
- Boosting your paid ads budget, so you can create more relevant audiences and achieve better ROI on your campaigns
- Enhancing your brand and shop by investing in new photography, design, store displays or packaging
- Amp up your advertising ahead of peak seasons
- Helping you sell off old inventory and release cash (and space) quickly
📚 Bookmark for later: A Simple Guide to Instagram Advertising
4. Purchasing equipment & investing in new technology
When you’re down in the day-to-day detail of your business, it can be hard to take a step back and prioritise bigger investments — even if you know how much there is to be gained from making them.
The next big step looks different for every business. Here's a few scenarios in which other brands have used merchant funding to level up their brand:
- Their ecommerce store is gaining traction, but their POS system doesn’t sync across so they find themself accidentally selling things twice
- They’ve outgrown their Shopify store and are looking to get a custom site designed
- They want to start selling coffee and are looking for a machine that can go the distance
📚 Bookmark for later: 7 Independent Businesses Going Beyond Traditional Retail
5. Opening a shop
Opening your first (or second, or third!) shop is such an exciting step for any business, but it sure is an expensive one. Rent, refits, licences, deposits, the first big stock up… it’s definitely a time when extra funds can come in handy, and Grow with CREOATE is here to support you with this big milestone.
📚 Bookmark for later: How to Open a Shop: From Idea to Open Day, and Beyond
6. Covering unexpected costs
Setting aside enough money to cover unexpected costs can be hard — by their nature, they are unexpected, after all. So whether your rent has suddenly been put up, or you’re having to fork out for a licence you didn’t know you needed, we’re here to provide you with the funds you need — fast.
👋 Discover whether you’re eligible to use Grow with CREOATE, or learn more about it here.