Business loan for a bookshop

Business loan for a bookshop

Online Book Stores Eligible for A Merchant Cash AdvanceIf you’re the owner of a bookshop, you’re likely to have found financial support to be something that has been lacking during lockdown. The Coronavirus pandemic has lead to the closure of the vast majority of businesses in the UK and around the rest of the world. An increasing number of those businesses have unfortunately closed their doors for good, due to the result of our lockdown. Though, you should be aware that just because you’re going through struggles at the moment, it doesn’t have to be the end of the road for your venture.

If you get the funding you need to save your business, or simply elevate it to the next level, you can give yourself a whole new outlook on the future of your company.

Since being able to reopen last week, bookshops sold almost 4 million books, which is a massive increase of around 30% from the same week last year. This shows that avid readers have been eagerly awaiting the return of book stores and library services. Purchasing books online just simply isn’t the same as popping into a local shop and properly browsing their selections for yourself. It is the physical nature of a book that has kept so many of us from going fully digital with them, as many of us have with music and film, etc.

Though, for retailers such as Waterstones and other huge names in the book world, it is far easier to reconnect with your audience than it is for the independent book merchants out there. We understand this and that is why our range of funding services are directed towards smaller business models, such as limited companies or independent retailers.

Business Loans for Bookshops

Here at PDQ Funding, we offer unsecured business loans to retailers of all kinds, including bookshops. This type of loan will allow a lump sum of money for development of your bricks & mortar shop or online store. Some lenders that offer loans to retailers often require a personal guarantee. This legal status of a personal guarantee is there so if your business was to default on loan repayments, you as the business owner becoming personally liable for paying back the money. The most traditional form of lending within this type of sector is a bank overdraft, although for larger amounts with longer repayment periods, most traders will opt for secured loans. These types of loans are commonly available from banks and other traditional lenders and will usually require a strong financial history.

The small business loan will generally provide low fixed interest rates, with repayments set at equal amounts which are repaid each month for a set period of time. Criteria between lenders varies significantly but in general but lenders will be looking to loan to businesses with a strong financial record and an excellent credit rating. PDQ Funding interest rates are comparable with an overdraft and the repayment terms will be dependent on your business structure.

Merchant cash advance for a Bookshops

This funding option is suited to businesses of all sizes, so whether you own a small or large business, you won’t be let down by our working capital product. Our Business cash advance is an alternative unsecured business loan, which means it’s a flexible funding option for you, and has no requirement to secure any personal or business assets against the loan.

Our cash advance calculates how much your business can borrow by factoring in your monthly credit and debit card transactions. The percentage of each future card sale that is repaid to your lender is agreed prior to the conduction of the loan. This means you’ll know exactly how much you’re going to have to pay back with each sale, plus you’ll know that you only start the repayments once you’re making sales.

The simplest way of looking at it is that if your retail business has a slow sales week, you’ll repay less. Therefore, you won’t be under the constant pressure of attempting to reach a certain amount of profit each week. There are no hidden costs or fees, so you won’t be on the receiving end of a nasty shock once you take out a cash advance with PDQ Funding.

    • Get £5k to £200k within 24 hours
    • Pay back through your future card sales
    • Unsecured – there’s no worries
    • Same day funding to your business
Are Online Book Stores Eligible for A Merchant Cash Advance?

Your business is eligible for a merchant advance if you meet the following criteria:

    • Your business is registered in the UK.
    • You have been trading for 6 months or more.
    • The business has credit and debit card transactions of £5,000 per month or more.

Documents Required to Apply

The following documents will be requested by your business manager once the online application has been completed. Please have the following documentation available:

    • 6 months of merchant credit card sales statement 
    • 3 months of business bank statements

The advantages to unsecured business loans

 In theory, unsecured loans are a less risky borrowing option because there’s no danger of losing any assets if you can no longer repay any debt you find yourself owing. They can also offer more flexibility than secured loans, with lenders tending to offer repayment terms of anything from one month to three years. This amount of flexibility is a perfect fit for many retail shop owners, as the level of business you receive may be dependent on the time of year it is and other unpredictable factors may play a part in the proceedings.

An unsecured loan basically means it’s not secured against property or other collateral, many lenders will be happy to top up an unsecured loan once a company has made a certain number of successful repayments, and will also offer repayment holidays as an additional benefit. Though, this information is likely to differ from lender to lender, so be sure to do your research before jumping into an agreement you don’t fully understand yourself.

Our quick four bullet points on things you need to know about our unsecured finance:

    • Applications can take just 10 minutes to receive a lump sum of £5,000 – £200,000
    • Repayments are to be made every month at a set interest rate
    • The loan is unsecured, but you may be asked to sign a guarantee
    • If you do not hold a great credit score, you can still be accepted

We understand that the high street is ever changing and businesses can have a difficult time keeping up with the new demands of the retail sector. So a unsecured loan may just be what you need to support your business, and even help it to take the next step. The application for business funding only takes a few minutes of your time, and a decision will most likely be made on that same day. This means that the money can be released to you, in most cases, within five days of you submitting your application.

Unsecured Funding is the way forward for your bookshop

If you believe that your book store or library business could benefit from a short term boost of funds, then the unsecured business loan is likely the best option for your venture’s situation. The option of an injection of short term capital could be chosen for many reasons by business owners. It may be because you need to stabilise your company after a rough period, such as a dry sales month, or just that you can see ways to advance your company that are just a little out of budget.

The short-term unsecured business loan is far easier to make repayments on than other shorter-term options, this is because there will obviously be less payments to actually make, and the loan itself will normally be for a much smaller amount. Choosing an unsecured loan from PDQ Funding is a great opportunity for retail and online bookshops to upgrade their business model, or make quick fixes they need to make in order to ensure the future is bright and to maximise cash flow. It’s important to remember that making regular updates and upgrades to your venture can keep current customers enthralled and excited to shop with you, but also attract newcomers to your company, presenting you with new avenues of income and funding.

We’ve helped thousands of businesses just like yours get the funding they need for:

    • Training new staff
    • Purchasing new stock or equipment
    • Refurbishing premises
    • Relocation
    • Advertising
    • Helping with cash flow
    • Building a new website
    • and even more

Business loans or cash advance can be used for many different purposes. You may wish to use it to invest in new stock, move your business to a new location, or help to cover your payroll costs, it’s entirely up to you. You can apply for a free no obligation quote today and find out if your business qualifies for our services.

How to apply for a bookshop business loan:

Step 1:

Visit our application page and provide the relevant information. This will ensure that we match you with an ideal lender. We will then ask you for further information about your business. You’ll need to be ready to tell us the following:

    • The name of your business
    • How long you’ve been in business
    • Your average monthly card sales
    • Amount you are looking to borrow and over what period

Step 2:

Will will then require a few personal details, so please be ready to tell us:

    • Your title, along with you first name and surname
    • Position you hold within the business that is seeking a loan
    • Email and telephone number, so that we can stay in further contact with you

Step 3:

Read through our terms and conditions carefully, and if you’re happy to continue, click ‘get a quote’. From here your application will be processed and reviewed by a member of our business finance suppliers team, who will help you find the correct lender for your emergency business loan.

Step 4:

We will then be in touch with you to confirm the conditions of your business loan agreement.

Step 5:

Once the application is complete, it will be sent off and approved by a lender. You can then have a discussion with them regarding the terms of the loan. These terms will include interest rates, as well as how much the borrower will repay each month. The loan is then provided to you on an agreed and transparent basis. As one of the UK’s leading merchant cash advance companies, we are here to support the growth of your business with alternative business funding.

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