A Brief Guide to Alternative Lending for Jewelry Makers
108 Greenwich St., 5th Fl New York, NY 10006
For personal assistance, call
877-880-8086
Get Started

A Brief Guide to Alternative Lending for Jewelry Makers

Whether you are a watchmaker or silver/gold/blacksmith who is just starting out or a jeweler or lapidarist who has been in business for years, there comes a time when extra working capital can be used. Not only does it take a significant amount of money to get started, expenses like inventory, equipment, payroll, marketing, and a website add up and become costly. Unfortunately, many first-time business owners are turned down for loans from traditional banks, even if when they have assets to use as collateral for a secured loan. The good news is that alternative lenders have stepped up to fill in the funding gap. As a  The following are a couple options that are now available to help:

Equipment Financing: A type of loan or extension of credit to a business, with the purpose of helping the business acquire new equipment. Equipment Financing extends only the capital needed to purchase a specific piece of equipment and is most commonly written as a lease.

Merchant Cash Advance: Short-term financing transactions that are collected through a set percentage of your visa and MasterCard sales  that are accepted at your place of business. Probably the most common term used in the industry. These do not have a set repayment schedule and are based on the volume of your businesses credit card processing sales. These are usually only guaranteed by the future sales of your business.

Term Loans: A loan that is backed by a bank for an exact amount that has a specified repayment timetable and interest rate that are adjusted accordingly. Terms mature between 1 and 10 years.

ACH Advance: A form of a merchant cash advance that is repaid on a daily basis by direct ACH debits rather than a merchant account. These are still a purchase of receivables and the amount debited via ach are determined by the amount of credit card processing sales  that are batched out the previous day.

ACH Loan Products: These have a fixed repayment schedule that is paid either daily, weekly or monthly. These products are catered to industries that do not accept credit cards and need a fixed payment.

Here are a few ways you can put your working capital acquired through an alternative lender to use in your shop:

  • Purchase New Equipment & Tools: pliers, magnifiers, saws, drills, diamond bits, stone setting tools, ring cutters, soldering kits, dapping tools, hydraulic jewelry presses, work benches, lamps, etc.
  • Inventory Purchases: Gemstones, wire, bails, jump rings, chains, beads, precious metals,  art clay, sheet metal, brushes, etc.
  • Employee Training: Train new and existing employees on new customer service rules and guidelines, send staff to expos and workshops, POS/transaction systems, etc.

For more information about what Excel Capital Management can do for you, visit our Solutions page or call 877-880-8086 to speak to one of our financial specialists.

Back to the list

See what your business qualifies for

Some required fields are empty

Latest blog posts

Most Read Posts

Categories


See what your business qualifies for

Some required fields are empty

Your Trusted Business Funding Provider 

Over $50 Million Delivered Nationwide 

x