Retail Store Funding in Lewisville

Stock on the shelf is money you do not have

Retail runs on a delay: you pay a supplier, the goods sit in a stockroom, and only when they sell does the money return. A store in Lewisville, a city of 111,822 at the 2020 census in the Dallas-Fort Worth Mid-Cities, deals with that delay every season. The residents and the surrounding suburbs provide steady demand, but the shop owner still has to place orders weeks ahead of the shoppers.

Inventory cycle at a glance

When a bigger early order pays for itself

Suppliers sometimes offer better pricing on larger orders, or limit availability for in-demand items to those who order early. If you have the cash, you can take advantage. If you do not, you buy small and reorder, often at a higher unit cost, and may miss the peak week altogether. Working capital helps in this case because the choice is between a larger, earlier order and a small one.

It is less helpful if the stock is something you cannot sell. A larger purchase of a slow item only locks up more cash.

Other retail costs worth planning

• A storefront refresh, new fixtures or an expanded floor plan.
• An online store alongside the physical one, including photography and fulfillment materials.
• The sales tax you collect. The Comptroller notifies filers by letter whether to report monthly or quarterly; the maximum combined state and local rate is 8.25 percent. A timely-filer discount of 0.5 percent applies.
• Lease deposits if you move to a better location.

Plan for these separately from stock so that a big buy does not crowd out the tax bill.

A short illustration, round numbers only

For illustration only, and not a statement of our terms or a typical outcome: a gift shop expects to sell $60,000 of goods over a holiday season but has to buy $30,000 of it by the end of September. If its account holds enough only for half of that, it orders half, runs out of the best sellers by mid-November and loses part of the peak. The shop's problem was not demand but timing. Working capital that arrives before the order deadline can close that distance, as long as the owner has a realistic view of what will sell and at what margin.

Keep notes on last year's best sellers and slow sellers. Buying with that list in hand is the safest way to use outside capital for inventory.

Next steps

Compare working capital and lines of credit, then browse the Lewisville hub. The application takes about five minutes and uses a soft credit pull. Sole proprietors can apply, and funding of $25,000 to $5,000,000 can arrive in as little as 24 hours after approval. Apply here.