Stock Costs Money Before It Makes Money
That is the core problem in retail. You pay suppliers in September for goods you sell in December. We work with lenders who understand that cycle and will lend against it.
£400bn+
UK retail sector annual sales
300,000+
Retail businesses in the UK
The cash-flow problem in retail is structural. You buy before you sell. Suppliers want payment in 30 days; your customers pay you over the counter in dribs and drabs across the following quarter. If you have a card terminal doing decent volume, a merchant cash advance is often the cleanest answer: the lender advances a lump sum and takes a fixed percentage of your daily card takings until it is repaid. There is no fixed monthly repayment, so a quiet January does not sink you. For seasonal stock specifically, stock finance lets you borrow against the inventory itself, draw it down before peak, and clear it once the sales come through. We place both regularly. Which lender fits depends on your card volumes, your supplier terms, and whether you trade bricks-and-mortar, online, or both. We are a broker, not a lender, so no rate or approval is promised here; the lender decides that once they have seen your bank statements and trading history.
Common Challenges in Retail
Paying for stock before you sell it
Suppliers want money in 30 days. Your peak sales might be 90 days away. That gap is real cash you have to find somewhere.
Seasonal concentration
A large share of your annual turnover can land in a few weeks. Lenders who do not understand that pattern penalise you for a slow March when your whole model is built around a strong November.
Thin margins under price pressure
Online competition has compressed margins across most categories. Debt has to be sized carefully; an MCA factor rate that looks fine at 35% gross margin looks very different at 22%.
Fit-out and new locations
A new unit or a refresh eats capital upfront, often before that site has taken a single sale. Most lenders want a track record at your existing shop before they back the next one.
Finance Solutions for Retail
We work with specialist lenders to find the right product for your business.
Merchant Cash Advance
Advance against future card takings, repaid as a percentage of daily sales. Repayments flex with your volume, so a slow week costs you less.
Learn moreStock Finance
Borrow against inventory ahead of a seasonal peak. The stock is the security; you repay as it sells. Terms typically run 3 to 12 months.
Learn moreRevenue-Based Finance
Similar repayment mechanic to an MCA but suited to online retailers running through Stripe, Shopify, or PayPal rather than physical terminals.
Learn moreUnsecured Business Loans
Fixed-term facility for fit-out, marketing spend, or a deposit on a new unit. Most lenders want at least 12 months trading and clean bank statements.
Learn moreWork out your numbers
Free calculators for the products retail businesses use most.
Get a Free Retail Finance Quote
Tell us what you need and we will match you with the best lenders for your business. No obligation, no credit check.
Get matched with the right lenders
Tell us a little about your business and we will match you across our UK lender panel. No fee to search, no obligation.
Frequently Asked Questions
Can I borrow to buy stock for Christmas or another seasonal peak?
Yes, and it is one of the more straightforward retail finance cases. Stock finance is structured for exactly this: you draw down before the peak, the lender holds a charge over the inventory, and you repay as it sells. Some facilities are revolving, so you can draw, repay, and draw again across multiple seasons. The number the lender cares about most is your sell-through rate from the previous equivalent period.
Does a merchant cash advance work if I sell mainly online?
It depends on your payment processor. Traditional MCA lenders hook into card terminal data from providers like Worldpay or Barclaycard. If you process through Stripe, Shopify Payments, or PayPal, some revenue-based finance providers will lend against that instead. The mechanics are similar; the qualifying criteria differ. We will tell you which product fits before you apply anywhere.
Will a lender care that my sales are seasonal?
The right lender accounts for it; the wrong one does not. We try to place retail deals with lenders who look at annual turnover and trailing 12-month card data rather than the worst single month. That said, if your busiest month is more than six or seven times your quietest month, some lenders struggle with the volatility. Be upfront about the shape of your year from the start, it saves everyone time.
Related Sectors
Ready to Get Funded?
Whether you need working capital, equipment finance, or property funding, we can connect you with the right lender in days, not weeks.