Small businesses are oftentimes never short on passion, dreams, or a will to succeed. But when it comes to proper funding, they don’t always make the cut. This has been a growing problem given the number of microbrands and small businesses sprouting up in practically every sector of every industry, especially in retail.
With such a toxic problem in such a potent industry, pioneers rushed to the forefront to develop a solution to the lack of funding experienced by smaller companies and microbrands inside and outside of retail. What this resulted in, among other things such as the proliferation of venture capital firms, was the development of microlending.
At a time when loan sharks ran rapid, with banks refusing to give out business loans for less than $50,000, microlending was a well-needed financial innovation. While the positive vibrations experienced from microlending stretched across various industries, the retail industry, in particular, saw a huge momentum shift for a number of reasons.
The First Batch
In order to get a solid return on investment, retailers prefer to buy in bulk. But buying that first batch of clothes or products can be costly. What seems like a simple problem is a common hurdle that startups and microbrands in retail have when first getting started.
When microlending was conceived retailers were able to start stocking inventory and getting the returns that would eventually make them financially independent. Companies could also product-test more courageously and take more risks on styles or variations that may lead them to success.
If you start thinking about all the great product conceptions that may have been extinguished due to a lack of funding you get this gut feeling that the world missed out on a lot. Luckily, microlending was there to bridge the gap in more ways than just inventory and stock.
Technological Stepping Stones
Right alongside microlending was the innovation of retail technology, something that also helped propel retail to the forefront it now stands boldly at the helm of.
While retail technology was meant to assist all sorts of retailers and microbrands to blossom and succeed, it comes with a price. Most or at least all of the cutting edge retail technology you see on the market at one point or another had a subscription fee or a pay to use model.
Retailers and young companies can’t always afford these types of fees when first starting out. This being the case, microlenders came in handy whenever a business owner wanted to amplify their company with some innovative tech.
As was the case with getting a starting inventory, the loans that microlenders offered for retail tech applications were supposed to only be temporary funding. The idea behind these loans was that these companies could eventually become financially responsible as a result of the asset that the funding provided, whether it was inventory, retail tech, or, a whole new brand.
A Fresh Breath of Air
Sometimes, all that an emerging retail company needs is a breath of fresh air, or, a rebrand by a confident and capable branding and design agency. While many growth agencies and retail marketers will work with you and your budget to ensure that you reach the potential that they see you’re capable of, you still need something to grease the wheels.
Luckily, microlenders enable you to get as little or as much money as you need when you need it. Their unique offerings equip you with the money you need to get that performance marketing firm onboard and your brand on the high-road to success.