Hookah lounges, smoking and cigar lounges have been in pretty much every major city and continue to expand their reach. It is estimated that through the year 2024 the E-cigarette market is set to reach $53.4 billion globally. And a large portion of those sales can come from retails stores in the form of a 3rd party distributor or directly via a dedicated smoke or vape shop.
Launching a new or maintaining a store requires a lot of capital and frequently these retailers are difficult pressed to locate fast capital. When a location opens up you need to act fast as location is all things in any retail type business. Smoke, cigar, or vape shops aren't any different.
Financing For Vape and E-Cigarette Shops
Alternative financing may potentially be the greatest supply of fast capital with this type of industry. Very little documentation is required and you can receive a lending decision within only 24 hours. There are several various kinds of funding options available for the business. Each financing features its own group of requirements and terms.
Here are funding choices to consider:
Business Type of Credit
If you are seeking a funding option that allows you some flexibility for your vape/smoke shop business, your search is over. With a business credit line, you are able to control just how much so when you withdraw your hard earned money (up to your approved amount).
A business line of credit is perfect when you need to satisfy short-term business needs such as purchasing inventory, making payroll or advertising.
Term Loan
With a phrase loan you have a lump sum payment of capital which you repay with regular repayments having a fixed interest rate. This is similar to standard loan you'd receive when choosing an automobile or home. Length of the loan is typically 2 to 5 years.
Working Capital Advance
As a business owner, a functional capital advance might be well suited for you for those who have poor personal credit and have been in business a comparatively short period of time and haven't built a business credit history.
This kind of funding puts a greater focus on your monthly revenue and the stability of your cash flow when determining should you qualify.
However, unlike another options that offer monthly payments and a fixed APR, the working capital advance pay back is typically daily. It is not considered a loan, instead this is an advance of money on future charge card receivables. For this reason, there is no APR rate with no set repayment terms. There is just a set repay amount where flat fee is going to be charged for you for that advance. The repay period tends to be shorter too, typically 3 – 12 months.
SBA Capital Loan
The SBA Capital Loan is really a financing option that is partially guaranteed by the government. While these loans might be more difficult to qualify, they are truly one of the best options for your business.
Equipment Financing
This financing type is ideal if you need to purchase a large piece of business-related equipment. Payments for the equipment will take place monthly and include the main and interested over a fixed term. As securing for that financing, your purchased equipment will be used as collateral.
Vapor and E-Cigarettes Businesses are Growing
Electronic cigarette (e-cigarette) manufacturers are increasing very quickly. They are considered a high-risk type business as this is dealing with new innovations that are not 100% proven. This can be a difficult position for just about any company particularly when they are fully aware when they had more inventory they might generate a lot more income through sales.
Getting fast capital though is really a major hurdle for just about any business including those selling Vapor Cigarettes. The ecigarette market is really taking off and staying in front of your competitors is key to success. Thankfully, those who work in this industry can look to SmallBusinessFunding.com for fast capital allowing you to continue to grow and prosper.
This Smoke shop electric cigarettes industry continues to come forth with new and innovative products. Buying this inventory in a moment's notice and being the first retail place to stock their shelves will benefit. Using a close relationship with an alternative lender who can supply fast business capital of these purposes will let you, the company owner, sleep easy during the night.
Applying for a smoke shop electric cigarettes business loan or funding option is quick and easy.
You can easily call one of our dedicated specialists at 800-742-2995 or complete our online application. It's that easy.
