7 Retail Business Funding Options UK 2025
Complete guide for retail shop owners: Stock funding, working capital, expansion. iwoca (best all-rounder), YouLend (online retail), invoice finance. £3k-£500k compared.
Best Funding Options for Retail Businesses
1. iwoca - Best All-Round for Retail
- Amount: £1k-£500k
- Factor: 1.08-1.25x (best rates)
- Min Revenue: £3,000/month
- Speed: 24 hours
- Best for: Brick-and-mortar retail, convenience stores, independent shops
2. YouLend - For Online Retail
- Amount: £5k-£500k
- Factor: 1.10-1.35x
- Best for: E-commerce, Amazon/eBay sellers, online retail
- Why: Shopify/marketplace integration makes application seamless
3. Stock Finance - For Inventory Purchase
- Amount: £5k-£1M
- Cost: 5-10% above base rate
- Best for: Large stock orders, seasonal inventory
- Secured: Against the stock you're purchasing
4-7. Other Options
- 365 Finance: Good for retail with seasonal peaks
- Invoice finance: If you sell B2B (not B2C)
- Funding Circle: Cheapest (7-12% APR) but requires good credit
- Overdraft: £1k-£25k for short-term gaps
Best Funding by Retail Type
Convenience Store/Small Shop
Best: iwoca (£3k minimum, flexible repayment, 1.08-1.25x rates)
Fashion/Clothing Retail
Best: Stock finance for seasonal inventory + iwoca for working capital
Online Retail/E-commerce
Best: YouLend (Shopify integration) or iwoca (better rates)
Electronics/High-Value Retail
Best: Stock finance (secured against inventory) - lowest cost for large stock purchases
Cost Comparison: £40k for Stock
iwoca MCA (1.15x):
£46,000 total = £6,000 cost | Ready in 24hrs
Stock Finance (8% APR):
£42,400 total = £2,400 cost | Ready in 3-5 days
Funding Circle (9% APR):
£43,560 total = £3,560 cost | Ready in 5-7 days
Conclusion
Best retail funding: iwoca - Best balance of speed (24hrs), cost (1.08-1.25x), and flexibility. Works for 80% of retail scenarios.
Exception: Heavy e-commerce? YouLend. Large stock order? Stock finance. Can wait and have good credit? Funding Circle.