Financing Your Shine: The Best Business Loan Options for Jewelers
March 25, 2025 | Last Updated on: March 26, 2025
By Russ Shumaker
Owning a jewelry store can be highly rewarding. As a jewelry store entrepreneur, you become part of someone’s story when they shop for an engagement ring or heirloom jewelry. You’re part of some of the most meaningful moments in someone’s life.
Having adequate capital is essential to owning the jewelry business of your dreams. Diamond jewelry, gemstones, and precious metals like platinum, gold, and silver have fairly high price points and you’ll need to keep a significant collection in stock in order to attract customers.
If you don’t have the necessary cash on hand, jewelry financing can help you bring your entrepreneurial visions come to life.
We’ll explore how to obtain easy jewelry financing and outline some of the best options for your needs.
Jewelry Business Outlook
According to Statista, jewelry revenue has grown from $282 billion in 2020 to $358 billion in 2024. It’s expected to reach over $446 billion by 2029.
The jewelry industry is surviving and thriving amid the technological revolution. While online jewelry sales account for nearly 30% of jewelry sales, the majority of jewelry sales take place in-store.
Understanding what’s trending is essential to succeeding in the jewelry store business. However, standard jewelry items like engagement and solitaire rings and wedding bands are also essential.
With the right jewelry financing, products and strategies, your jewelry store can be primed for success.
How to Increase Your Jewelry Business’s Value Proposition
Competition is fierce in the jewelry business. Because of this, it’s essential to increase your value proposition to attract clients and remain competitive.
Here are some ways to do it.
1. Create a strong brand identity
Branding is essential to have a thriving jewelry store. A strong brand helps customers remember you. Investing in professional branding can make a big difference in your success.
2. Provide flexible payment options
Customers want flexible ways to pay for expensive jewelry. Special financing opportunities will encourage them to buy more jewelry. For example, Kay Jewelers and Zales partner with Comenity or other jewelry financing companies for credit card accounts. Cardholders can make installment payments and have a promotional period with no interest. This can be a good way to encourage repeat sales for your jewelry business. Solutions that can provide instant credit approval to complete purchases on the spot are also beneficial.
3. Offer customizable jewelry solutions
Customers love jewelry that’s unique to them. Offering engraving or custom designs can make your jewelry business stand out and keep customers coming back. Consider letting them meet with your craftsmen to discuss their dreams and see what’s possible within their budget.
What Jewelry Financing Can Do For Your Business
A jewelry store loan can help your business in many ways. With any business, there are start-up costs. Running a brick-and-mortar or online jewelry shop requires investing in items like:
- High-value jewelry inventory
- Jewelry and checkout counters
- Store displays
- Mirrors and lighting
- POS systems
- Jewelry boxes
- Insurance to protect your inventory investment
- Digital and technological investments like laser-powered tools, CAD technology, and 3D printing
There are also operational expenses such as marketing, staffing, and other business costs. Even if you operate an online jewelry marketplace, you still have significant expenses.
Getting easy jewelry financing can provide the capital needed to grow and run your business.
Jewelry Financing Options
Several financing options are available for jewelers. The great thing about owning a jewelry store is that you can start small and scale up over time. If you lack a good business credit history, you can finance smaller needs. Then, you can get larger loans down the road.
Small Business Administration (SBA) Loans
SBA loans can be helpful for entrepreneurs who are not in a rush and who prefer low rates. You can get SBA loans from both traditional and online lenders. Because they are backed by the SBA, they typically offer competitive rates and terms.
The SBA (7)a loan program is the most popular and can be used for:
- Real estate purchases
- Refinancing business debt
- Security systems
- Purchasing equipment
- Buying furniture and supplies
- Acquiring another business
- Working capital
The downside of SBA loans is that the loan application process can be time consuming lengthy and it may take a long time to receive the funding after you are approved.
Working Capital Loans
Working capital is money used for operational business expenses. Every business has a cash flow shortfall at times, often caused by seasonal slumps, changes in consumer habits, or increased competition. The jewelry store business is seasonal, with peaks during holidays. A working capital loan can cover slower months, so you stay operational.
Working capital financing can also help with:
- Unforeseen expenses
- Inventory and equipment purchases
- Growing your business
Equipment Financing
Equipment financing can assist jewelers in purchasing tools and equipment for outfitting their stores. This includes everything from files, reamers, brushers and drills, to display cases and office chairs. The benefit of equipment loans is that the items purchased with loan funds become collateral. Because equipment financing is a secured loan, it’s easier to get than most small business loans. In some cases, you may not even need a down payment.
Term Loans
Term loans are what come to mind when most people think about business financing. A term loan is simply a loan that has a repayment term. A term loan can be used for just about any business expense, including:
- Equipment purchases
- Buying inventory
- Expanding operations
- Boosting cash flow
Term loans provide upfront funding of a set amount and are repaid in equal monthly payments with interest, making them a good option for business owners looking for the best jewelry financing.
Business Line of Credit
A business line of credit works similarly to a credit card. A borrower is approved for a maximum credit limit and borrows from the credit line as needed. As the line of credit is repaid, it’s added back to the credit limit. Lines of credit are often used for working capital and other business expenses.
Revenue-based Financing
Revenue-based financing isn’t a loan. It’s a type of funding where repayment is based on your revenue and is calculated according to a percentage of your future receipts.
Revenue-based financing can be used for:
- Replenishing stock and inventory
- Opening a second location
- Store renovations
- Expanding operations
- Hiring staff
Borrowers with lower credit scores benefit the most from revenue-based financing. You can get revenue-based financing from an alternative loan specialist or online lending platform.
Final Thoughts
Jewelry financing is a great way to keep your jewelry store stocked with the highest-quality jewels. It’s also beneficial when you want to grow your business, renovate your store aesthetics, or have a cashflow shortfall.
The challenging part is choosing the right jewelry store financing solution for your needs. If you’re funding a tangible asset like jewelry, an equipment loan may be useful as it can be easier to qualify for than other types of financing and you may get the best terms with it.
However, if you’re just starting your jewelry business and lack credit or don’t have good business credit, getting financed with an alternative loan specialist may be a helpful option. This is because it can be difficult to get approved by a bank or the SBA when you don’t have a solid business credit history. Many alternative loan specialists have financing solutions for borrowers who lack strong credit.
Alternative financing marketplaces offer a lot of benefits, particularly when the speed of funding is of the essence. Many small business owners today partner with a reputable online loan specialist to help them get the financing they need when they need fast financing or when they don’t qualify for traditional bank funding.
FAQs
What is the potential profit margin for jewelry stores?
It can range from 25% to 75%, with an average profit margin of 45%. Factors impacting profitability include:
- Business model
- Inventory quality
- Marketing and pricing strategies
- Cost management
What types of jewelry store businesses can get financing?
Nearly any type of jewelry store can get funding. This includes:
- Fine jewelry stores
- Boutique jewelry stores
- Online jewelry marketplaces
- Estate jewelers
- Single jewelry stores
- Jewelry store chains
Do I need a business plan to be guaranteed jewelry financing?
Unfortunately, there’s no such thing as guaranteed jewelry financing. However, a business plan is an asset when applying for jewelry financing. Many lenders even require a business plan as part of the application process.
What is the typical term for jewelry financing?
Terms for jewelry financing can have wide variability, ranging from a few months to 10 years. SBA loans typically offer the lengthiest long terms, while a short-term loan requires faster repayment.
Can I get a business line of credit if I don’t have enough revenue history or time in business?
Most lenders have firm requirements regarding time in business and annual revenue. However, if you have excellent personal credit and the lender will approve unsecured financing with a personal guarantee on the loan, you may be able to get a line of credit.
What does my credit score need to be to get jewelry financing?
The answer will vary on the lender and your situation. Banks and the SBA usually require higher credit scores, while alternate lenders may offer financing with a lower credit score.
