Stock More. Buy Smarter. Keep Cash Available.

Before You Tie Up Cash in Inventory, Watch This.

Inventory opportunities don't always arrive when cash flow is convenient. See how financing can help qualified liquor store owners preserve operating cash while preparing for seasonal demand, larger inventory purchases, supplier opportunities, equipment needs and expansion.

VIDEO COMING SOON — Liquor Store Capital Strategies — 60-Second Overview

Inventory Has to Be Purchased Before It Can Be Sold.

Every dollar committed to inventory is capital that isn't available somewhere else in the business.

Liquor store owners must balance having the right products on the shelf with maintaining enough liquidity to operate the business, respond to purchasing opportunities and prepare for changes in customer demand.

Seasonal inventory builds, larger supplier purchases and high-demand products can require additional capital before that inventory has converted back into cash.

Having access to working capital can provide another source of purchasing capacity while helping preserve operating cash for the rest of the business.

• Preserve Cash
• Increase Purchasing Power
• Prepare for Demand
• Act on Opportunities

The Inventory-to-Cash Cycle

1. Order Inventory
2. Pay Supplier
3. Product Sits on Shelf
4. Customer Purchases
5. Cash Returns to the Business

The timing between purchasing inventory and converting that inventory back into cash is one reason access to working capital can be valuable—even for an otherwise healthy business.

The question isn't always whether you have the cash. Sometimes the better question is how much cash you want tied up in inventory.

Prepare Now for Holiday Inventory Demand.

Holiday demand can require liquor store owners to commit additional capital to inventory before the associated sales occur. Access to working capital may provide additional flexibility to increase selected inventory, respond to supplier opportunities and prepare for customer demand while preserving cash for other operating needs.

• Holiday inventory
• Larger supplier orders
• High-demand products
• Volume purchasing opportunities
• Operating cash flexibility

Capital Available Doesn't Mean Capital Has to Be Spent.

The objective isn't simply to purchase more inventory. It's to have financial flexibility when an attractive business opportunity arises.

For some owners, that may mean having access to a revolving line of credit and using it selectively for inventory or working-capital needs. For others, a term loan, equipment financing, SBA financing or commercial real estate financing may be more appropriate.

The right financing structure depends on what the business is trying to accomplish.

Have capital available. Deploy it when the economics make sense.

What Could Additional Capital Help You Accomplish?

• Inventory
• Supplier opportunities
• Working capital
• Equipment & store improvements
• Expansion
• Additional locations
• Business acquisition
• Commercial real estate

One Store. Different Capital Needs. Different Financing Solutions.

Financing options are subject to borrower, business, lender and transaction qualifications. The appropriate structure will depend on the specific financing request.

Don't Wait Until You Need the Money.

Large inventory orders, supplier opportunities and unexpected business needs don't always occur when cash flow is convenient.

BE READY BEFORE THE OPPORTUNITY ARRIVES.

More Than One Financing Product.

Norman Capital Mortgage works with business owners to evaluate financing based on the purpose of the capital, the financial profile of the business and the transaction itself.

Sometimes the right question isn't simply, “How much can I borrow?” It may be: How much capital should remain available? How quickly will inventory convert back into cash? Is this a recurring working-capital need or a one-time investment? What financing structure matches the useful life and purpose of the capital?

Understand the Need

Evaluate the Options

Structure the Capital

Your Commercial Finance Advisor

Rod Norman

With extensive experience in commercial and business-purpose finance, Norman Capital Mortgage works with business owners seeking capital for working capital, expansion, acquisitions, commercial real estate and other business needs.

Request Your Complimentary Liquor Store Capital Review

Tell us a little about your business and what you're considering. We'll use the information to evaluate potential financing paths.

Frequently Asked Questions

What can liquor store financing be used for?

Depending on the financing program and qualifications, capital may be available for inventory, working capital, equipment, renovations, expansion, acquisitions, commercial real estate and other eligible business purposes.

Can financing be used to purchase inventory?

Potentially. Certain working-capital and line-of-credit programs may allow qualified businesses to use proceeds for inventory and other operating needs.

Do I have to use the entire line of credit?

That depends on the financing structure. Revolving lines of credit are generally designed to provide access to approved capital as needed, subject to the specific lender's terms.

Can NCM finance the purchase of another liquor store?

Potentially. Business acquisitions may qualify for SBA, conventional or other acquisition-financing structures depending on the borrower and transaction.

Can financing include the building?

Potentially. If commercial real estate is involved, NCM can evaluate commercial real estate and SBA financing options as part of the Capital Review.

How quickly can financing be completed?

Timing varies substantially by financing product, borrower qualifications, documentation and transaction complexity. Some working-capital products can move considerably faster than SBA, acquisition or commercial real estate financing.

Will requesting a Capital Review guarantee approval?

No. A Capital Review is an initial evaluation and does not constitute an approval, commitment or guarantee of financing.