NRF: Retail sales rebound in April

After a weak start to the year, U.S. retail sales rebounded in April, which is a good sign for retailers moving forward. 

As sales pickup, small- to medium-sized businesses will need to be able to keep their shelves stocked. While larger companies have the ability to do so on their own dime, it can be more difficult for small businesses, as they often have limited available capital. Luckily, retail inventory financing is available to help out. 

The National Retail Federation recently released its April sales report, which was more optimistic than what was published by the Department of Commerce. NRF said retail sales jumped 0.6 percent in April from the previous month, and 3.9 percent year-over-year. 

"In the face of higher taxes and sequester, consumers provided the economy a bit of a reprieve this month," NRF President and CEO Matthew Shay said. "Despite colder spring weather and an early Easter, consumers shopped in April, demonstrating an inherent resiliency even as the economy faces serious headwinds, including stagnant job and wage growth."

Should sales continue to accelerate, small- to medium-sized retailers might need some help replenishing their inventory. Even in times of heightened sales levels, companies of this size can struggle to obtain a loan from a bank due to limited available capital or poor cash flow. 

However, retail inventory financing is available to those businesses that have been turned away by a bank. This form of asset-based lending allows a company to use current inventory as collateral to obtain a revolving line of credit

Once this line of credit has been secured, retailers can use it to purchase additional inventory to keep product on their shelves. It can also help businesses get through seasonal lulls when sales might not be as high.