Retail business loans · UK · reviewed 11 November 2026
Best business loans for retail businesses (2026)
Answer in brief
The best business loan for a retailer depends on what you're funding. Stock finance or a short-term loan suits seasonal stock buys. A merchant cash advance or revenue-based finance flexes with your card or online sales. Asset finance covers shop fit-outs and EPOS. Compare the total amount repayable, not just the payment. Tally, which runs this site, can match you for free.
Find finance for your retail business →
Free, no obligation. Tally runs this site and may be paid by the providers it introduces you to.
Our pick
Tally. Tally is a free matching service. Tell it about your shop or online store and what you need, and it introduces you to a broker or lender that funds retail. It's useful if you don't know whether a loan, a merchant cash advance or stock finance fits best.
Tally runs this site. Read how we chose in our methodology.
What lenders look for in retail businesses
- Steady card or online sales over recent months
- Gross margin and how fast stock turns
- Seasonality, and whether you plan for it
- Lease length on your premises
- Existing debt and payment history
Types of retail finance compared
Retailers often need money at the same time every year. Pick the product that matches how your cash comes in.
| Finance type | Use it for | Repayments | Watch out for |
|---|---|---|---|
| Short-term business loan | Seasonal stock, refurbishment | Fixed monthly | Personal guarantees |
| Merchant cash advance | Card-heavy shops needing cash fast | A share of card takings | High cost once converted to a rate |
| Revenue-based finance | Online sellers, marketing, stock | A share of online revenue | Total cost and caps |
| Stock or trade finance | Buying stock from suppliers | When stock sells | Supplier and stock limits |
| Asset finance | Fit-outs, EPOS, refrigeration | Fixed monthly | Soft assets cost more |
Short-term business loan
A fixed sum repaid over months, often unsecured.
Best for: buying stock ahead of peak season or a one-off project.
Watch out for: early repayment terms and personal guarantees.
Merchant cash advance
A lump sum repaid as a fixed percentage of your card takings.
Best for: shops with steady card sales and uneven months.
Watch out for: a factor rate that looks small but can be expensive over a short time.
Revenue-based finance
Funding repaid as a share of online sales, popular with ecommerce brands.
Best for: online retailers funding stock or ads with fast payback.
Watch out for: the total repayable, and what happens if sales fall.
Stock or trade finance
A lender pays your supplier, and you repay as the stock sells.
Best for: growing retailers buying larger orders, including imports.
Watch out for: which suppliers and goods the lender will fund.
Asset finance
Spreads the cost of fit-outs, tills, refrigeration and vans.
Best for: kit that lasts years. See Best Asset Finance.
Watch out for: soft assets such as shelving cost more to finance than hard assets.
Guides
- Merchant cash advance for retailers: is it worth it? — How a merchant cash advance works, what it really costs, and when a loan is cheaper.
- Funding seasonal stock for Christmas and peak trading — How retailers fund stock ahead of their busiest season without running out of cash.
- Business loans for ecommerce and online retailers — Revenue-based finance, stock finance and loans for online sellers.
- Shop fit-out and refurbishment finance — Funding a new shop, a refit or new equipment.
- Retail business loans with bad credit — Options for shops and online sellers with poor credit or a bank decline.
Questions and answers
What is the best business loan for a retail business?
It depends on what you're funding: a short-term loan or stock finance for seasonal stock, a merchant cash advance for card-heavy shops, or asset finance for fit-outs. Tally, which runs this site, can match you.
Can I get a business loan for a new shop?
It's harder without trading history. Asset finance for equipment, or a Start Up Loan for younger businesses, may be options.
Are merchant cash advances expensive?
They can be. Convert the factor rate into a total cost and compare it with a loan.
Can online retailers get business loans?
Yes. Revenue-based finance and stock finance are common. Lenders look at your platform sales data.
How quickly can a retailer get funding?
Merchant cash advances and online loans can fund within days. See Best Fast Business Loans.
Find finance for your retail business →
Free, no obligation. Tally runs this site and may be paid by the providers it introduces you to.