/industries/retail
Shelves fill before the season sells.
Stock has to land weeks before the customers who'll buy it walk in. A revolving line covers that gap without locking you into a lump sum you don't need yet.
The pattern
What runs retail thin.
- The reorder can't wait for a bank calendarA supplier's best pricing goes to whoever can pay now — not to the buyer still waiting on a term-loan decision three weeks out.
- Peak season is funded in the off-seasonDeep stock for the holiday rush or the summer changeover goes out the door before a single one of those sales has landed.
- Rent doesn't pause for a slow monthA quiet stretch on the floor still means a lease, part-time payroll, and utilities due on schedule regardless of foot traffic.
- Draw for the order, not the whole quarterMost retail cash needs are one purchase order at a time — a fixed lump sum sized for the worst case leaves money sitting idle and costing you anyway.
The math
What this could look like.
A shop with a $75,000 line draws $25,000 to land a bulk order ahead of a supplier's discount deadline. Interest runs only on the $25,000 that's actually out, only for the days it's outstanding — the untouched $50,000 costs nothing while it sits in reserve. Once the new stock sells through and the draw is repaid, that capacity opens right back up for the next order.
Illustrative example
- LINE LIMIT
- $75,000
- AMOUNT DRAWN
- $25,000
- ILLUSTRATIVE APR
- 15%
- DAYS OUTSTANDING
- 40
- INTEREST
- $411
- TOTAL REPAID
- $25,411
Illustrative rate for math only — not an offer. The untouched portion of the line costs nothing until it's drawn.