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Leveraging Business Loans to Drive Sales to Your Liquor Store

Oct 17, 2023

The allure of owning a liquor store is often irresistible for many entrepreneurs. In addition to providing the promise of a steady income stream, liquor stores are less prone to economic downturns. Even during a pandemic, they provided an essential service and may remained open when other businesses are forced to close. So whether you are considering opening a liquor store or already have an established store and are looking to grow, here are a few of the considerations you should weigh.

The Benefits of Owning a Liquor Store

The business of alcoholic beverages thrives on versatility. From craft beer connoisseurs to those seeking fine wines or spirit enthusiasts, the customer base of a liquor store is both broad and diverse. Moreover, the ability to stock up with a vast range of products allows store owners to cater to varying tastes and demographics, further increasing the chances of attracting new customers.

However, to maximize the potential of your liquor store business, adequate financing is essential. This leads us to the variety of financing options available to liquor store owners.

Financing Options for Liquor Store Owners

When it comes to business financing for liquor stores, options vary from SBA loans, small business loans and, commercial real estate loans. Non loan options include equipment financing and Merchant Cash Advances (MCA). Each financing option offers different benefits and terms that liquor store owners should understand.

Why a Merchant Cash Advance (MCA) is Preferred

Despite the lower interest rates of traditional business loans, MCAs are gaining favor among liquor store owners. The reasons for this preference are numerous.

MCAs do not require real estate collateral, making them more accessible to startup businesses without significant assets. Also, the application process is usually MUCH faster, providing quicker access to funds. Additionally, unlike fixed loan repayments, MCA repayments* are made as a percentage of daily sales, creating a more flexible repayment structure that better accommodates the ebbs and flows of cash flow which is often the case with liquor stores. In other words, an agreed upon amount is based on your expected receivables, but if those receivables go down, so do you payments.

With an MCA, you can easily inject more liquidity into your business. This can be instrumental in stocking up your store, running tastings to attract new customers, or promoting your business through advertising and social media.

Moreover, as long as you have a business bank account and 3-4 months of recent bank statements, you are ready to apply. It’s really that simple.

The Average Amount Needed for a Startup Liquor Store

Starting a liquor store in a bustling location like New York, for instance, requires significant capital. The average loan amount for a start-up liquor store typically ranges from $200,000 to $500,000. This figure can be significantly influenced by various factors, including the cost of leasing or buying commercial real estate, licensing fees, and inventory costs.

The amount you can access will vary from funder to funder. The LCF Group can provide up to $2M in funding which will get even the biggest liquor stores a great jump start on covering cost and providing the working capital needed to operate successfully.

Liquor Store Growth Strategies

With the right financing in place, you can focus on growth strategies. Organizing tastings can be a great way to attract new customers and boost sales. A well-run tasting event allows customers to sample craft beers, wines, and spirits that they might otherwise overlook. This can lead to an increase in sales and also create a loyal customer base who are eager to attend future tastings.

Another growth strategy could be to negotiate better deals with your distributors and wholesalers. By leveraging your MCA, you can purchase in bulk, reducing the cost per unit and increasing your profit margins.

Finally, with the rise of digital technologies, liquor stores can leverage social media to reach more customers, advertise special events or offers, and improve their brand’s visibility.


To leverage the benefits of a liquor store and drive sales, business owners must understand their financing options and select the best fit for their needs. While business loans, SBA loans, and lines of credit are all viable options, the flexibility, and accessibility of a Merchant Cash Advance make it a preferred choice for many liquor store owners.

However, the success of your liquor store will not solely depend on your chosen financing option. It is also crucial to focus on understanding your metrics, and maintaining a healthy balance sheet. Finally, always remember to prioritize your customers, adapt to their changing tastes, and continually strive to attract new patrons to your store.


$3,098,641,569 dollars funded