Funding for UK retail businesses.
UK retail businesses sit at the intersection of stock cycles, card payment data and physical premises, so the finance options that fit are different from a pure online seller or a B2B service. Operators with meaningful card sales often suit a merchant cash advance from Liberis, YouLend, SumUp or Square. Multi-channel retailers with ecommerce volume can layer in revenue-based finance from Wayflyer or Outfund. Fit-out, refrigeration, EPOS and shopfit can usually be funded via asset finance. Lendrly maps these routes against published lender criteria so you can shortlist by sector fit rather than ad placement.
Eligibility guidance only - not financial advice, not a loan offer, not a guarantee of approval. Lendrly is not FCA-authorised and is not a credit broker.
Snapshot
UK lender criteria matched
23
Across the four core finance types Lendrly profiles for this sector.
Core products covered
4
MCA · invoice finance · asset finance · unsecured loan.
Sector-specific deep dives
4
Per sector × product overlay pages with worked examples.
Lender appetite by product
How many UK lenders Lendrly tracks publish criteria that fit retail businesses, grouped by finance type. The appetite band is derived from the count of matching lenders, not from any forecast of approval. Approval is subject to lender underwriting.
Merchant Cash Advance
6 UK lenders match
- Typical amount
- £500–£1m; flexi up to £2m via partners; Up to 2x monthly revenue; £500–£100k
- Security / PG
- Often unsecured
- Speed to funding
- Minutes via partner; Offer <24h; funding ~48h
- Min revenue floor
- Not published
- Min trading history
- 3 months
Invoice Finance
6 UK lenders match
- Typical amount
- Up to 90% invoice advance; Up to 90% invoice advance; Up to 90% invoice advance
- Security / PG
- Typically secured
- Speed to funding
- Within 24h advertised; Often within 24h post invoice
- Min revenue floor
- Not published
- Min trading history
- No minimum stated
Asset Finance
6 UK lenders match
- Typical amount
- £25k+; £15k–£5m; £25k–£2.5m
- Security / PG
- Typically secured
- Speed to funding
- Contact within 1 working day
- Min revenue floor
- Not published
- Min trading history
- No minimum stated
Unsecured Business Loan
5 UK lenders match
- Typical amount
- £1k–£1m; £10k–£750k; £10k–£1m
- Security / PG
- Often unsecured
- Speed to funding
- Instant/same-day for many; Decision as fast as 1h; funds ~48h
- Min revenue floor
- £10,000 / month
- Min trading history
- No minimum stated
Illustrative published market rate ranges
Aggregated ranges from public UK lender pages, refreshed . These are not quotes and are not offered by Lendrly — pricing is set per-application by each lender at underwriting.
| Product | Unit | Low | Typical | High | Source |
|---|---|---|---|---|---|
| Merchant cash advance | factor rate | 1.10 | 1.25 | 1.50 | Source |
| Revenue-based finance | total cost over term | 6% | 10% | 15% | Source |
| Unsecured business loan | representative APR | 8% | 15% | 30% | Source |
| Invoice finance | discount fee per 30 days + service fee | 0.5% + 0.2% | 1.8% + 1.0% | 4.0% + 3.0% | Source |
| Asset finance | representative APR | 4% | 8% | 12% | Source |
Merchant cash advance: Factor rate is a multiplier on the advance — not an APR. Total repayable = advance × factor. A £20,000 advance at 1.30 means £26,000 total repayable, settled as a fixed share of daily card sales.
Revenue-based finance: Revenue-based finance prices the total cost as a percentage of the advance, repaid by direct debit against a connected revenue feed over 6–12 months. The effective annualised cost varies with how fast revenue settles the facility.
Unsecured business loan: Representative APR for UK SME unsecured term loans varies materially with trading history, affordability and credit profile. The mid-band is a reasonable expectation for a 12-month-plus established UK limited company; pricing rises sharply with risk.
Invoice finance: Invoice finance is priced as a discount fee against the advance per 30 days outstanding plus a service fee on turnover. Spot / single-invoice products tend to sit at the higher end of the discount fee.
Asset finance: Hire purchase and finance lease pricing depends on asset type, age and resale liquidity. New, identifiable assets (vehicles, plant) sit at the lower end; soft assets (IT, fit-out) at the higher end.
Speed to funding
6 of the lenders Lendrly tracks for this profile publish same-day or minutes-after-decision funding for established applicants, and 5 publish funding within a few business days. Actual time to funds depends on documentation, affordability checks and underwriting workload.
Bad credit and CCJs
Retail businesses with active CCJs, recent arrears or insolvency markers will face a narrower lender list — most mainstream UK SME lenders treat unsatisfied CCJs as a hard decline. Specialist sub-prime and merchant cash advance providers can sometimes look past historic adverse credit when trading is strong. See our eligibility guide on business finance with bad credit and the eligibility scenario for CCJs for the lender shortlist Lendrly tracks for these cases.
Islamic finance options
UK SME borrowers seeking Sharia-compliant finance can look at the lenders below. Product mix is typically commercial property finance and asset finance via murabaha or ijara structures. Profit rates broadly mirror conventional rates of equivalent risk.
Frequently asked questions
- What finance options do UK retail businesses typically use?
- UK retail businesses commonly use a combination of merchant cash advance, invoice finance, asset finance and unsecured business loans depending on the use of funds. Merchant Cash Advance usually has the strongest UK lender appetite for this sector — 6 of the lenders Lendrly tracks publish criteria that fit. Final fit is subject to lender underwriting.
- How many UK lenders cover retail in the Lendrly database?
- Across the four core finance types Lendrly profiles for this sector, around 23 unique UK lender criteria-sets currently match. The full lender library lists every provider Lendrly tracks; this hub surfaces only the products and lenders that publish criteria consistent with retail businesses.
- What is the minimum trading history for retail business finance?
- The most permissive lender Lendrly tracks for this sector publishes a no minimum trading-history floor. Most other lenders prefer 6 to 12 months minimum.
- Can retail businesses with bad credit get UK SME finance?
- Retail businesses with active CCJs, recent arrears or insolvency markers will face a narrower lender list — most mainstream UK SME lenders treat unsatisfied CCJs as a hard decline. Specialist sub-prime and merchant cash advance providers can sometimes look past historic adverse credit when trading is strong. See our eligibility guide on business finance with bad credit and the eligibility scenario for CCJs for the lender shortlist Lendrly tracks for these cases.
- What about Islamic-finance options for retail businesses?
- Several UK lenders offer Sharia-compliant SME finance under murabaha or ijara structures, including Al Rayan Bank, Gatehouse Bank, BLME, ADIB UK and Qardus. The product mix is typically commercial property finance and asset finance; merchant cash advance is rarely available in Islamic structure. See our Islamic finance hub for details.
- What are the typical fees and rates for retail business finance?
- Pricing depends on the product. Merchant cash advance is priced as a factor rate (typically 1.10–1.50). Invoice finance combines a discount fee per 30 days outstanding and a service fee on turnover. Term loans, asset finance and commercial mortgages are priced as APR. The illustrative ranges on this page are aggregated from public UK lender pages — actual pricing is set per-application by the lender at underwriting.
See which lenders fit your retail business
The eligibility checker takes about two minutes. Educational guidance only — Lendrly does not submit applications and is not a regulated credit broker.
Keep exploring
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Important — educational guidance only
- Not regulated by the FCA and not a credit broker.
- Not financial, legal or tax advice.
- Not a loan offer and not a guarantee of approval.
- Subject to lender underwriting — criteria can change.
Lendrly provides general eligibility guidance only. It is not financial advice, a loan offer, or a guarantee of approval. Provider criteria can change and final approval is subject to lender underwriting, affordability checks, credit assessment, and documentation. Lendrly is not a regulated credit broker; we do not submit applications on your behalf.