Retail business loans for shops and online retailers

Yes, it can be possible. Lenders look at the shop's trading accounts, the lease or property, your retail experience and how much you are contributing. A trading shop with steady takings is easier to finance than a new opening. Our acquisition finance page explains how business purchases are usually structured.

Yes, sole traders and partnerships can borrow for a shop, as well as limited companies. Lenders look at bank and card terminal statements, tax returns, sales trend and the owner's credit history. Finance of £25,000 or less to a sole trader or a partnership of two or three partners can be regulated consumer credit, which affects which lenders can offer it and the protections you receive. Our page on sole trader loans explains more.

It is harder, but it can still be possible if you can show why sales dropped and how the funding will help. Lenders compare takings year on year to allow for seasonality, so a clear explanation and realistic forecasts carry weight. They are reluctant to fund ongoing losses, and borrowing to hold slow stock adds cost to a margin problem. A merchant cash advance flexes with card takings, but can cost more than a term loan.

For unsecured loans to limited companies, lenders usually ask directors for a personal guarantee. Asset finance is secured on the equipment itself and secured loans on property, so whether a guarantee is also needed depends on the product and the strength of the business. A guarantee puts your personal assets at risk if the business cannot repay, so check exactly what you are committing to before you sign. Our guide to personal guarantees explains the detail.

It can. Some lenders may use a soft search at the early stage, but a full credit search usually happens when you make an application, and that is recorded on your file. Several full searches in a short period can concern lenders, which is one reason to compare lenders through a broker before applying. Repaying on time then builds a positive record. Our guide on improving your credit score explains what lenders see.

Sometimes. stock finance and asset-based lending can fund against stock that is easy to value and sell, such as branded goods, while fashion and perishable stock are harder. Many shops instead use a revolving credit facility or short-term loan for seasonal buying. Instant Quotes shows which lenders fit your shop.

Split the costs. Shelving, counters, refrigeration, display units and tills can go on asset finance, while building work, flooring, lighting and decoration usually go on a business loan or fit-out finance. Lenders look at your lease and landlord consent, itemised quotes and what the refit should do for sales. Smart Funding Solutions, a whole-of-market commercial finance broker, searches lenders that fund retail fit-outs and equipment.

Yes. EPOS terminals, scanners, label printers, scales and back office computers can be funded on hire purchase or leasing, and some lenders include software set-up and installation in the same agreement. Card terminals are often rented from the payment provider instead, so check the contract length and exit terms before signing.

Trade finance is designed for it. A funder pays the overseas supplier and the retailer repays once the goods have landed and started to sell, within an agreed period. Stock finance and revolving credit are alternatives for smaller, more frequent orders. Providers check the supplier, the goods and their margin, your import set-up and your sales history. Smart Funding Solutions searches trade and stock finance providers on its panel.

Yes, when the discount is worth more than the cost of borrowing. Compare the total cost of the finance for the days you pay early with the discount offered. A revolving credit facility suits this, because you draw it for each invoice and repay as the stock sells.