You've asked a great question - simply put, it can be a hassle to obtain business financing (especially when you try to get it through a bank). When you add to that the fact that you'll just be starting the business from scratch, the process can get that much more complicated.
Lenders will look at a wide array of factors to assess your qualification as a loan applicant. Those funding factors include the business's credit score, monthly revenue, existing debt, and business age (just to name a few).
With that in mind, it's also important to note that when a business applies for financing through a traditional loan provider like a bank, if they don't qualify they won't even be informed of what the reason was that they were denied. Then they're left having invested months of their time and loads of their energy into a fruitless endeavor that brought them nothing but damage to their credit score and a few (or many) more gray hairs.
There are much better methods of applying for business financing. Lending Express, for example, is a financial technology company that offer small-to-medium businesses:
> A fast, easy, and free way to apply for financing with dozens of the country's top loan providers
> A clear picture of what they need to do to improve their funding chances
> A service that matches them with the lender(s) that best fit(s) their financial profile and needs
You can learn more about Lending Express here: https://www.lending-express.com/apply/?r=BUS&ad_ID=YkZjqAe1
They also have tons of useful info for business owners here: https://www.lending-express.com/blog/?r=BUS&ad_ID=YkZjqAe1
Here's one blog, in particular, that you may find useful for getting into retail: https://www.lending-express.com/blog/how-to-compete-with-big-brands/?r=BUS&ad_ID=YkZjqAe1
To see what some of Lending Express's customers have had to say you can visit: https://www.trustpilot.com/review/lending-express.com
Good luck with the business!
Jonathan, make sure that your business plan clearly states the goals and objectives of the business; defines the digital and direct marketing strategy, website design, keyword selection, SEO and SMO objectives; analyzes the competitive landscape; and defines the uniqueness, benefits, and features of the new business.
Banks and suppliers can be a viable source for start-up capital if you, as an owner, have a good personal credit record. A clean and high credit score will facilitate obtaining funding to finance company purchases and secure a line of credit from a bank for working capital. This may, at first, require personal guarantees. As revenues build up, however, the company’s assets can be used as collateral. The banking industry has been revolutionized by fintech and microlenders that operate through mobile networks and facilitate lending to small and micro businesses. Avoid accepting loans at unacceptably high-interest rates because this causes a destructive cycle of dependency.
Crowdsourcing platforms, of which Indiegogo is one of the most prominent players, have helped raise billions of dollars in funding for small business start-ups. To launch a crowdfunding campaign requires some preparation and initial funds but they are very reasonable and can be organized on a shoestring budget. The advantage of this form of funding is that you can reach a broad audience around the world.
Angel investors are individuals who have set a personal mission for themselves to aid and incubate new business ideas and concepts. They have a more sophisticated approach in choosing where and how they place their money on risky ventures, but they are definitely open to new ideas. Angel investors are usually involved in local business associations, and this is a good place to search.