Grocery Store Financing : How To Get Grocery Store Business Loan


One of the most visited and crucial parts of any neighborhood and/ or locality is a local grocery store. 

A grocery store is a simple establishment in concept but has such a high position in the daily functioning of the society. Apart from the obvious contributions, a grocery store has much more to offer apart from produce.

A local grocery store brings a sense of community to the daily commute of the members of the society and also generates opportunities for employment in the sector. 

Opening a grocery store requires some base statistics that will ensure that the store is up and running and is having a healthy influx of cash flow. These being:

  • The store must have a propensity of generating repeating customers.
  • The store must have various and periodic offers to entice new and existing customers.
  • It must house an assortment of exotic goods.

Business Prosperity for a Grocery Store

A grocery store is an establishment that is always in high demand. Yet, the business margin that it produces generally floats on the lower end. What this implies is that in order to sustain itself and be profitable, the store will have long term selling plans that involve increasing the total amount of goods for a smaller profit margin as opposed to selling few highly exotic items for a larger profit margin.

Getting Business Loan for grocery Store

When you are looking for a business loan for a grocery store, there are a few types of loan options which can be scouted. There are different ways in which one can acquire a business loan for their grocery store:

  1. SBA Loan: those who have a small grocery might opt for an SBA. Here, up to 85 % of the loan amount is guaranteed by the participating lenders by the SBA. These lenders and primarily banks and make financing business loans for grocery stores a more convenient endeavor for both the store and the lender.
  2. Business Line of credit: This type of loan is very similar to that of a credit card. Here a lender or bank sets aside a fixed amount under the store’s name. The store may then use funds from that credit loan in small parts over a small period or utilize it in full according to necessity. This removes that pressure of having to accept the entire loan amount in cash and putting it to use as quickly as possible.
  3. Equipment Financing: having the necessary capital is not the only resource needed in order to run a grocery store. One of the other vital components is to have the right equipment and machinery which will allow the produce to remain fresh and have storage facilities in order to keep excess products.
    With equipment financing, lenders can provide the required capital for the store to be able to purchase or loan equipment in order to get their business rolling.

Documents required for a Business Loan for grocery Store

Identity ProofDriver’s license

PAN Card


Voters ID Card

Aadhaar card

Address ProofRation card

Electricity Bill


Trade license

Sales tax Certificate

Lease Agreement

Income ProofBank Statement for the past 2 years
Finance Documents2 years’ worth of Profit and loss statement.

2 years of ITR with balance Sheet

Certificate of Business Continuation
Financial Audits3 years of audited financials
Proof of OwnershipTrue copy of Memorandum and Articles of Association

Sole Proprietorship Declaration


When preparing documents for a business loan for grocery store, not only does the books for the store need to be opened and presented, but also information of the owner and the co- partners (if any) must be presented.

Process of getting a Business Loan for a Grocery Store : 

Step 1: When preparing for a business loan, it is important to know what kind of loan will best serve your purpose. Whether that be an SBA loan, equipment financing, or a credit loan, knowing which type of loan to take is crucial.

Step 2: Understand and have a clear plan of action for the store. Just as obtaining the necessary capital is vital, establishing a focus or agenda for which the capital will be used is also a key. When approaching a bank or a lender, most often than not you will have to specify why and for what purpose the business loan is being taken.

Step 3:  Filling out the required documents. All sources for a business loan, be it lenders or banks, will need you to present certain documents and will require you to fill out certain forms. It is important to have all the required documents and to fill out the loan application form correctly.

Step 4: after completing the application form and submitting it, it comes down to a waiting game. After submitting it, the main bulk of tasks are done and now all you must do is await the acceptance notice for the loan application.

Step 5: After the application is accepted, the loan amount transferred to the business owner’s bank account from which he or she can then proceed to utilize the freshly gained funds in order to pursue their business agendas which would be establishing and uprating in the case of a grocery store along with other miscellaneous tasks.


Getting a Business loan for a grocery store may come off as a long and drawn out task and can appear to be gruelling at times. What store owners should keep in mind is that the main bulk of the process is in getting the right documents in order and correctly filling and submitting the form. After that it takes a few days to get the approval and get the loan amount.

Grocery store owners should keep a positive mind-set and be cooperative when it comes to getting business loans for grocery stores so that there is smooth transfer of the desired funds.


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