5 Ways That Your Retail Business Can Utilize Short-Term Working Capital

by Kieran Daly
April 28, 2023
5 Ways That Your Retail Business Can Utilize Short-Term Working Capital

When it comes to running your retail space it’s important to stay up with the latest trends and always ensure that you have the stock that brings customers in the door, but this can be a challenge that consumes large amounts of capital. What is the best approach when seeking to meet the needs and expectations of your customers without sacrificing your own capital immediately?

A short-term working capital advance can be a great tool for retail business owners to meet and overcome the day-to-day challenges that come with running a successful retail business. Read on to learn five ways that your retail business can use short-term working capital to always meet the needs of your customers.

What Is A Short-Term Working Capital Advance?

A working capital advance is a type of funding provided to a business to help it manage its day-to-day operational expenses. It is essentially a short-term loan that can cover expenses such as inventory purchases, payroll, rent, and other overhead costs.

The amount of the working capital advance is typically based on the business's cash flow and revenue, as well as its creditworthiness. Sometimes, a lender may require collateral to secure the loan, such as business assets or accounts receivable.

Working capital advances are often used by businesses that have seasonal fluctuations in revenue or those that need to make large investments in inventory or equipment. They can be an effective way for businesses to maintain their cash flow and keep their operations running smoothly during times of financial stress.

How Can A Short-Term Working Capital Advance Help A Retail Business?

1. Inventory Management

Inventory management is crucial to the success of your retail business. Ensuring that the items your customers love are always available while rotating products for different seasons can be a challenge, although this is made much easier with the use of short-term working capital loans. 

A short-term working capital advance can be used to purchase additional inventory to meet the demands of peak seasons or unexpected spikes in sales. This will help you avoid stock shortages that may force your customers to seek out alternative suppliers.

2. Marketing and Advertising

Bringing in additional customers while always staying at the forefront of your current customers’ minds can be a challenge. This is made easier through the use of effective marketing. But fueling your marketing machine can sometimes prove to be a costly venture, especially if you want to make a push to bring new customers on board.

This financial burden is made easier through the use of short-term working capital, as these funds can be invested in advertising or marketing campaigns. This investment can lead to increased brand visibility that will attract new customers, driving sales and increasing revenue. 

3. Expansion and Renovation

Financing store expansion and renovations can be a costly endeavor, but one that is worth the price. Additional locations can mean increased visibility and brand recognition, while a fresh coat of paint or redesign can improve foot traffic and make your store stand out. 

Short-term working capital is a great solution when searching for funds to pay for your expansion or renovation as it provides quick access to capital to get the work started. Using short-term working capital for this purpose lets you reinvest in your business while improving your customer's experience and increasing sales. 

4. Staffing and Training

With increased demand and customers comes the need for additional staff to ensure that the customer experience and journey is one that makes them want to return or reorder. It’s also essential to reinvest back into the skills of your current staff by providing additional training so that your team is always prepared to meet the needs of your customers. 

Retail owners can utilize short-term working capital loans to hire additional staff and provide the training that they or any existing staff may need. This will help to improve overall customer service, increase efficiency and support overall business growth. 

5. Supply Chain Management

Having a strong grasp of supply chain management and ensuring that you have a reliable flow of goods is crucial to running your business efficiently and successfully. Supply chain issues can arise and it is imperative that you stay ahead of stock shortages and improve overall operational efficiency.

A great way of doing this is by utilizing short-term working capital to ensure that you always have the stock that you need on hand while potentially buying in bulk to potentially cut costs in the long run.

Short-Term Working Capital Advance Options






$25K - $2M

4 - 16 months

Minimum of 1 year in business, a minimum $50K monthly revenue, a business bank account, and a personal credit score of 625


$5K - $250K 

3 - 24 months

Minimum of 1 year in business, a minimum of $100k in annual revenue, business bank account, personal FICO Score of 625


$5K - $2M

6, 12, or 24 months

Minimum of 2 years in business, a minimum of $50K in annual revenue, $12K in annual credit and debit card sales, no credit score minimum


$2.5K - $500K

1 - 3 years

Minimum of 2 years in business, may have to provide collateral and a “strong” credit score. 

Fora Financial

Up to $1.4M

Varies based on your credit card transaction volume.

Minimum of 6 months in business, a minimum of $60K in credit card sales or $144K minimum among all transactions, and a minimum credit score of 500.

Backd’s Working Capital: The Financial Tool For Your Retail Business 

When it comes to finding a short-term working capital advance to help your retail business grow, Backd is here to help. 

Backd’s Working Capital Advance is one of the best on the market with competitive rates and terms that actually allow your business to grow. Backd offers working capital advances of $25K up to $2M with terms of up to 16 months. 

If you’re considering taking out a working capital advance then apply with Backd today. Our application takes 3 minutes to complete with funding arriving in your account in just 24 hours. Don’t wait to get the funding that your business needs to grow, take the first step and apply with Backd today.

What would you do with the right amount of capital?

Working Capital Advance

Easy payment structures offer amounts with fast turnaround, Simple and easy process to access working capital.

  • Flexible - no collateral required
  • $10K - $2M
  • Terms up to 16 months
  • Automatic daily or weekly, or semi-monthly payments

Business Line of Credit

Get instant access to revolving credit with unlimited terms, and the best rates for your business.

  • Draw funds anytime
  • $10K - $750K
  • Unlimited terms, incredible rates
  • Soft credit pull that doesn't affect your credit score