How we can help
Our funding program includes a revolving line of credit with fixed terms and payments. Draw for holiday inventory, repay, and draw again up to your approved limit.
Check if my store qualifies →Key takeaways
- Best for recurring, short-term needs: holiday inventory, timing gaps, and repairs.
- Bank lines are cheapest but require 2+ years of strong financials. Online lines are faster with higher costs.
- Lenders may require a “clean-up” period each year when the balance is paid to zero.
- Set up your line before you need it. It's much easier to get approved when cash flow looks strong.
Market overview
- Limits
- Roughly $10,000–$500,000+ (bank lines can be larger)
- Structure
- Revolving; draw, repay, draw again
- Cost
- Interest on the outstanding balance; possible annual or draw fees
- Renewal
- Typically reviewed every 12 months
- Speed
- Days (online) to weeks (bank, SBA CAPLines)
Typical market ranges, not offers.
How a line of credit works
A lender approves you for a maximum amount, say $150,000. You draw what you need, when you need it, and pay interest only on the outstanding balance. As you repay, your available credit replenishes. Unlike a term loan, you don't get a lump sum or pay interest on money sitting idle.
Illustrative example: Holiday inventory cycle
A store with a $150,000 line draws $90,000 in late October to stock spirits, sparkling wine, and gift packs. Holiday sales turn that inventory into cash over 8–10 weeks, and the owner pays the line back down to zero by mid-January. At an assumed 12% annual rate, carrying an average balance of about $60,000 for roughly 10 weeks costs around $1,400 in interest, far less than a fixed-term loan for the same purpose.
Hypothetical scenario for illustration. Numbers are rounded and are not a quote or offer.
Types of lines of credit for liquor stores
| Type | Who it's for | Notes |
|---|---|---|
| Bank line of credit | Established stores with 2+ years of profitable tax returns | Lowest rates. Often secured by business assets (a blanket lien) and personal guarantee. May require annual financial statements and a clean-up period |
| SBA CAPLines | Stores that qualify for SBA but need revolving credit | SBA-guaranteed revolving lines for seasonal and working capital needs; terms up to 10 years |
| Online / fintech line | Newer stores, faster needs, credit challenges | Approved on bank deposits and sales. Faster, but higher rates; draws often repaid over 6–24 months each |
| Home equity line (HELOC) | Owners with significant home equity | Can be inexpensive but puts your home at risk. Use carefully |
What lenders look for
- Time in business: often 1–2+ years (some online lenders 6 months)
- Consistent monthly deposits and an average daily bank balance that isn't constantly near zero
- Personal credit: about 600+ for online lenders, high 600s+ for banks
- Profitable tax returns for bank lines
- Few or no overdrafts or NSFs in recent bank statements
- No stacked merchant cash advances
Expert tip
Lenders review your average daily balance and NSF history closely. In the 90 days before you apply, avoid overdrafts and keep a healthy cushion in your operating account. It's one of the easiest ways to improve your approval odds and pricing.
Line of credit vs. term loan
Where it works well
- Recurring seasonal inventory needs
- Unpredictable expenses like repairs, tax bills, and price-posting deals
- Paying interest only when you're actually borrowing
- Building a banking relationship for larger loans later
Watch out for
- Variable rates can rise
- Lines can be reduced or frozen at renewal if performance slips
- Not designed for long-term projects like remodels or acquisitions
- Some online lines carry draw fees that add up
For long-term needs, look at SBA loans or equipment financing. For one-off seasonal needs, compare inventory financing.
Set up your line before the holiday rush. Approvals are easiest when cash flow is strong.
Check my line of credit optionsFrequently asked questions
How big a line of credit can a liquor store get?
Is a line of credit better than a merchant cash advance?
Do I need collateral for a business line of credit?
Sources
We cite primary sources: federal agencies, regulations, and official program rules. Rules vary by state and change over time.
General education, not legal, tax, or financial advice. Loan programs, state alcohol laws, and lender requirements change and vary by state. Disclosures.