Liz knows her selection of quality, attractive, and well-fitting merchandise ensures her customer base’s loyalty and she believes they would support her if she adds children’s wear to her current offerings. She also believes her customer base would grow with the addition of children’s clothing and accessories and include not only parents but grandparents, other relatives, and friends.


Liz researched the options including the addition of children’s clothing and accessories as well as the displays that would be required. She knows she can invest “sweat equity” to rearrange the store’s interior and feels the addition of children’s play area would allow parents to shop while children played. She realizes moms love upscale stylish clothes and also desire fashionable functional clothes for their infants, toddlers, and children. Many moms and dads as have requested matching outfits for special occasions.

Liz researched the cost of adding additional lines of children’s wear, as well as the equipment needed for display and the options for a small children’s play area. She then proceeded to explore financing options to cover the cost. Given her current loyal customer base, she believed a short term loan could get her started while allowing her to spread the initial costs of new inventory over a short period. She didn’t want to commit to a long-term loan for inventory which would hopefully sell quickly and get this new area of her business off the ground.


Given her steady business growth, solid financials, and excellent credit, Liz was able to secure a 24-month loan for the $80,000 she had calculated for the new clothing, accessories, and more. She felt confident in the length of the term, it was long enough that she felt she could easily repay it and give her time to gauge the success of the addition of a children’s line in the store.

It took only two months to get the clothing in place, along with the displays and the children’s new play area. She quickly saw an influx of new customers including family members and friends of her existing customers. In fact, her children’s inventory sold quickly and she had to scramble to get in new clothing. She even had customers pre-ordering holiday outfits well in advance. Within 12 months, Liz was ahead on her payment schedule with an eye to pay off her short term loan 6 months sooner than expected.

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