Tobacco store owners face challenges in today's economy. While their core product is regulated by the ATF, there is also the hurdle of obtaining the working capital they need for inventory and growth.

Bank loans are reaching new lows since the SBA incentive program expired on May 26, 2010. Traditional lenders have put the breaks on extending lines to retail business. For cities like New York, where tobacco shop owners are becoming an undeserving victim of cigarette tax hikes, additional working capital can make all the difference in trying to adjust.

More and more tobacco stores and smoke shops are turning to Merchant Cash Advances to obtain funding. A Merchant Cash Advance is a funding product where by cash is repaid by diverting a percentage of each credit card sale transacted back to the funding provider. Payments are essentially made to reduce the balance only when revenue is generated. There is no time frame for when the total amount is due back.

These unique repayment terms are an incredible benefit that a traditional loan can't  offer. Additionally, the approval process takes just a few days time and poor credit is not an obstacle. Merchant Cash Advance providers see how much potential tobacco stores and smoke shops have to offer and are partnering with them to see them flourish. Some ideas to use the funds for are:

  • Inventory
  • Remodeling
  • Advertising
  • Building upkeep
  • New Signs
  • Cash Flow

An Advance of $10,000 or $15,000 or $30,000 could make a phenomenal difference in the growth and expansion plans of a tobacco store and smoke shop. Chances are your competitors are already thinking about it. A Merchant Cash Advance is the way to go.

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