Business financing for retail shops
Business Financing for Retail Shops in the UK
Retail businesses are on the frontline for many of the UK’s economic challenges, and now more than ever it’s vital for retailers to have access to affordable, flexible funding options to help their businesses survive and thrive.
✓ £10k – £1m advances
✓ Funds same day or within 24 hours
✓ Shops & ecommerce
76%
As of 2023, 76% of all sales in the UK were by card at point-of-sale.
Merchant cash advances
MCAs are perfect for businesses with fluctuating income, and can be obtained relatively quickly and easily compared to other forms of borrowing.
The challenge
Why might a retail shop need business financing?
The UK’s 314,000 retail businesses face a number of challenges, some of which are unique to the industry, but all of which threaten stores’ and brands’ revenue.
Cost pressures
Including rising employment costs, rising rental costs, rising energy prices, and tax pressures.
Lower consumer spending
Due to the cost of living crisis.
A move to net zero
Demanded by an increasing number of consumers.
New consumer expectations
Including the necessity of a well-curated and accessible online presence.
Use it your way
What can shops in the UK use business financing for?
Fortunately, business financing – of most types – can be used in almost any way a retail business sees fit.
69%
of small and medium sized businesses in the UK using external financing do so for cash flow reasons.
Purchasing stock
Purchasing equipment
Hiring new employees or investing in employee training
Completing renovations or refurbishment
Moving to new premises
Buying another business
Start-up costs
Marketing and advertising
Cash flow
Debt consolidation
How Swiftfund funds retailers
Merchant cash advances
Merchant cash advances (or MCAs) are more relevant to the retail industry at large, as all that’s required is for a business to receive at least some of its income via credit and debit card.
01
Borrow a lump sum
A business borrows a lump sum of money at the start of the agreement.
02
Repay as you sell
It’s repaid over time via a small percentage taken from each sale that’s run through the card payment processor.
03
Flexes with your sales
This percentage is fixed, but as it is only taken when a sale goes through, the level of repayment fluctuates in accordance with sales volume.
✓ The overall cost of borrowing is set at the start of the agreement, and does not change, no matter how long it takes to repay the funds.
✓ MCAs do not consider credit score when assessing an applicant, but instead focus on expected revenue.
✓ Perfect for businesses with fluctuating income, and can be obtained relatively quickly and easily.
Compare your options
What kinds of business financing exist in the UK for retail shops?
Given that the retail sector accounts for 4.9% of the UK’s total economic output, and employs over 2.7 million people, it’s no surprise that plenty of options exist to support businesses in the industry.
Swiftfund
Merchant cash advances
ProsQuick; accessible; flexible repayments
ConsRelies on receiving income from card sales
Traditional business loans
ProsLarge borrowing amounts; low interest rates
ConsHard to qualify for; application processing times can be slow; repayments are fixed
Invoice financing
ProsCan be quick to obtain; small amounts available; stabilizes cash flow
ConsOnly certain businesses qualify; can be an expensive form of borrowing; issues if customers do not pay their invoices
Revolving credit facilities
ProsFlexible; re-usable
ConsHard to qualify for; interest costs can be high
Asset based financing
ProsPotentially low interest rates; large borrowing amounts
ConsRestricted to specific asset purchases; assets can be seized if repayments are not made
Start-up loans
ProsAccess to versatile funding for new/young businesses
ConsCost; approval highly dependent on business plan/assets
Talk to Swiftfund today
If you’d like to discuss your business financing options with an expert, talk to Swiftfund today.
Getting funded
How can a retail shop get business financing?
Obtaining business financing is not as complicated as you might think. To get your advance approved, all we require is:
Step 1
A quick application
Step 2
6 months bank statements
Step 3
A copy of your I.D.
At Swiftfund we provide fast working capital for your business; our aim is to get you the funds the same day, or within 24 hours.
Retail funding FAQs
Quick fire questions
What kinds of retail businesses can get business financing?
Any kind of retail business can get financing in the UK, as long as it’s UK-based.
Can I get business financing for an ecommerce retail business in the UK?
Yes. There is no need for a retail business to have brick-and-mortar locations in order to qualify for financing.
How quickly can I get business financing from Swiftfund?
You can usually expect an offer within around 2 hours of applying. Once we have your bank statements and ID, we approve within the hour and can fund within the hour after that — so your funds are usually with you the same day, and within 24 hours. The only thing that holds funding up is missing paperwork.
What if my business is declined financing?
Businesses can be declined financing for a number of reasons; the most common is that the business applied for a type of financing, a borrowing amount, or to a lender that is unsuitable for their financial profile. Being rejected does not mean that no financing options exist; plenty of lenders work with businesses who have been rejected elsewhere or who have less-than-perfect credit or a limited trading history, and types of financing exist that do not rely on assets or credit.
Can business financing be used to cover inventory?
Yes. Most types of business financing do not have restrictions on their use.
Can business financing be used to cover staffing costs?
Yes. Most types of business financing do not have restrictions on their use.
Do I have to go to the bank my business uses for a business loan?
No; having a business bank account at a high street bank does not mean you have to, or that it’s best to, get business financing from them.
Ready to fund your retail business?
We provide advances from £10,000 to £1,000,000. All we require is a quick application, 6 months bank statements and a copy of your I.D.