How to Find Start Up Capital for My Consignment Shop

money image by Bradlee Mauer from

Finding capital to start a consignment shop takes some planning and research. The processes for capital financing and commercial loans have been tightened because of the credit crunch. Small business owners can no longer expect an easy loan process. Lenders now have higher standards on everything from personal credit scoring to analyzing the business plan, but by getting, everything organized prior to apply for a capital loan. A consignment shop will have a better chance of finding and getting working capital.

Finding Loans and Grants

Create a business plan. In order to obtain any type of business financing, a business must have a comprehensive business plan this includes existing businesses. To get help in putting together a consignment shop business plan, visit the local offices of the U.S. Small Business Administration (SBA) or their website.

Check the credit and the credit scores of everyone who will be applying for the loan. This is an important step because some loans and grants are offered only to people with poor credit ratings, low incomes, or those who have been refused a conventional capital loan. An example of such a loan is the 8a Business Development Loan is for consignment shop owners who are both socially and economically disadvantaged. You can receive free credit reports each year from Equifax, Experian, and TransUnion thanks to the Fair Credit Reporting Act.

Determine your minority, veterans, or other disadvantaged status. Certain loans and grants are offer to special groups in the population. The government considers anyone with any minority ancestry a minority as long as the minority ancestor was a blood relative. These individuals can claim minority status and take advantage of minority financing programs. In addition, women, the disabled, and veterans are offered specialized grants and loans not offered to other groups. To find minority, women, the disabled and veteran capital-financing program research such sites as the,, or visit a local Minority Business Development Center.

Search for loans and grants through non-profit organizations. Organizations such as National Organization of Development Companies and Self- Help administer such SBA financing programs such as 504 loans, 7 series loans and bonding assistance programs. When seeking capital funding for consignment shops do not forget to seek out these non-profit organizations.

Search for capital funding through government departments and agencies. Many government agencies and departments have their own loan and grant programs. To find consignment shop capital funding research agencies such as the Department of Commerce, especially if the consignment shop import or exports goods. The government also offers two central databases for finding capital financing. is for consignment shops seeking grant information and is to seek out state, local, and federal loans.


  • Have all tax and financial records organized by month and date prior to applying for a loan. This saves time when the loan officer requests further documentation or verification of application information.


  • Do not lie on financial applications. Details such as income levels, credit scores, credit history, and employment experience are easy to find. Not telling the truth on a financial application guarantees a refusal of the application.



About the Author

Anastasia Zoldak is an experienced freelance writer and researcher based in Chicago. She has been a professional writer since 2007. Zoldak has an undergraduate degree in business, which she has used in a variety of industries, including retail, sales and recruiting. Prior to becoming a writer, she ran a successful business.

Photo Credits