Editorial ranking
Best UK business loans for retail
Editorial UK lender rankings from desk research, post-decline options included. FundBiz does not run a credit check. Where a lender publishes a decision or funding time, it is shown in the ranking below.
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Retail business loans for UK limited companies are mostly short-term loans and cash advances repaid from your sales. On this list, Capify lends £10,000 to £3m to businesses trading 12 months or more, 365 Business Finance, Liberis and YouLend take repayments as a share of your sales, and iwoca offers a flexible loan for stock. This FundBiz ranking assesses 6 UK lenders for "best uk business loans for retail", weighting primarily on card-flow mca underwriting (30%), stock and inventory finance fit (20%), decision speed (20%) (see the full weighted criteria below).
Scores are our own desk-research assessment built from the FCA Register, Companies House filings and each lender's published product criteria, not customer reviews and not paid placement. Lenders don't pay for inclusion or rankings. If you send an enquiry, we pass it to one of the finance partners we work with, and we may be paid by the finance partners we introduce you to, by a fixed fee or commission depending on the partner and the finance arranged. It does not change what you pay.
Source: FundBiz methodology. Editorial by Best Business Loans Ltd (16833937).
Want the sector overview, cash-flow shape and typical decline reasons instead? See retail business finance →
Founder & Managing Director, Muswell Rose, FundBiz
Adam is the founder and managing director of Muswell Rose and a founder of Best Business Loans Ltd, the company behind FundBiz. His background runs through commercial finance, mortgages and fintech, including as managing director of an invoice finance business. He oversees FundBiz's guides and lender reviews.
AI-assisted check
- 1. Capify
Short-term business loans and supplier invoice payment · £10k to £3m · Decision in minutes; same-day funding on unsecured loans, 24 to 48 hours on secured (its own figures)
Short-term loans assessed on cash flow for retailers with 12+ months of trading and £10,000+ monthly turnover.
Our assessment: Decision speed: decision in minutes; same-day funding on unsecured loans, 24 to 48 hours on secured, its own figures.
Read full Capify review → -
Merchant cash advance (revenue-based finance) · £10k to £500k (its own figure) · Funds in as little as 24 hours (its own figure)
Direct MCA, no intermediary fee, strong on £25k+ tickets.
Our assessment: Decision speed: funds in as little as 24 hours, its own figure.
Read full 365 Business Finance review → - 3. Liberis
Revenue-based finance (merchant cash advance style) and pay-over-time funding for SMEs · £1k to £1m (its own figure) · Funds in as little as 24 hours (its own figure)
Embedded revenue-based finance via Worldpay, Klarna and Dojo, useful for retailers already on those platforms.
Our assessment: Decision speed: funds in as little as 24 hours, its own figure.
Read full Liberis review → - 4. YouLend
Embedded MCA / revenue-based finance · Up to £2m (its own figure) · Approval in as little as 24 hours (its own figure)
Best for marketplace-led retailers (Amazon, Shopify, eBay).
Our assessment: Decision speed: approval in as little as 24 hours, its own figure.
Read full YouLend review → - 5. iwoca
Flexi-loan / line of credit · £1k to £1m (its own figure) · Many customers get an instant decision; larger loans within 24 hours (its own figures)
Working capital outside card flow.
Our assessment: Decision speed: many customers get an instant decision; larger loans within 24 hours, its own figures.
Read full iwoca review → - 6. Allica Bank
SME term loan, asset finance + commercial mortgage · £25,001 to £150,000 (business loans); £25k to £2.5m (asset finance); £150k to £15m (commercial mortgages) (its own figures) · Decision by the next working day (its own aim)
Commercial mortgage for shop owner-occupiers.
Our assessment: Decision speed: decision by the next working day, its own aim.
Read full Allica Bank review →
Side-by-side comparison
| Lender | Typical rate | Ticket | Decision | Best for | Source | Checked |
|---|---|---|---|---|---|---|
| Capify | Factor rate set by risk (not published) | £10k to £3m | Decision in minutes; same-day funding on unsecured loans, 24 to 48 hours on secured (its own figures) | UK businesses trading 12+ months with £10,000+ monthly turnover that need short-term funds quickly | Lender's site | |
| 365 Business Finance | One fixed cost, repaid as a percentage of card sales (quoted per offer) | £10k to £500k (its own figure) | Funds in as little as 24 hours (its own figure) | Hospitality, retail and ecommerce Ltds trading 6+ months with £10k+ monthly card sales (365's published minimum) | Lender's site | |
| Liberis | One fixed fee, repaid as a percentage of sales (quoted per offer) | £1k to £1m (its own figure) | Funds in as little as 24 hours (its own figure) | Existing Worldpay, Barclaycard, Klarna or Dojo users with strong card flow | Lender's site | |
| YouLend | Fixed fee, repaid as a percentage of sales (quoted per offer) | Up to £2m (its own figure) | Approval in as little as 24 hours (its own figure) | Sellers on Amazon, Shopify, eBay, Etsy or Just Eat | Lender's site | |
| iwoca | From 1.5% per 30 days | £1k to £1m (its own figure) | Many customers get an instant decision; larger loans within 24 hours (its own figures) | Working capital you can draw down as you need it | Lender's site | |
| Allica Bank | Business loans 9.90% to 13.75% interest; other products quoted per deal | £25,001 to £150,000 (business loans); £25k to £2.5m (asset finance); £150k to £15m (commercial mortgages) (its own figures) | Decision by the next working day (its own aim) | Established Ltd companies with three or more years of filed accounts | Lender's site |
Source links go to the lender's own site, or to the page the figures on that row come from. Checked is the date we last checked them. Figures change, so confirm with the lender before you rely on one.
What is the best business loan for a UK retail shop?
For card-flow-funded working capital, MCA from 365 Business Finance or Liberis, or a short-term loan from Capify for retailers trading 12+ months. For seasonal stock, a stock finance specialist or iwoca flexi-loan. For owned premises, an Allica Bank commercial mortgage. For marketing investment, a mainstream term loan from Funding Circle.
How does merchant cash advance work for UK retailers?
You receive a lump sum, repaid as a percentage of daily card takings. Repayment scales with sales: busy weeks repay faster, quiet weeks slower. Sized against recent card-sales history. Priced as a fixed cost set per offer, with no fixed term.
Seasonal stock: which option fits a Q4 build
It depends on how you want to repay. iwoca says you can borrow to "buy stock or take on your next order", draw down only what you need, pay interest only on what you have drawn, and repay early with no fee. 365 Business Finance, Liberis and YouLend take repayments as a share of your sales, so you pay back more in busy weeks and less in quiet ones.
365 says it charges "one all-inclusive cost that never changes". Liberis charges one fixed fee, with a minimum monthly payment of up to 3% of what you owe, and says it is not authorised or regulated by the FCA. YouLend charges a fixed fee and no interest.
Capify lists stock among its loan uses, for businesses trading 12 months or more with £10,000 or more a month in turnover, repaid over 3 to 12 months. Allica Bank is on this list for shop premises, not stock.
See also: business loans with bad credit, revenue-based finance explained.
What credit checks apply to UK retail finance?
Many lenders run a soft search at quote and a hard search on full application. The director personal credit file is typically checked alongside the company. Most retail MCA lenders are more accommodating on credit history than mainstream term lenders.
Does a UK retailer need a personal guarantee?
For Ltd-co retailers, almost always. Possible exceptions: MCA, where some providers such as 365 Business Finance say no security is required (ask about guarantees), and asset-backed lending (commercial mortgage, asset finance) where the asset is the security. Sole-trade retailers carry personal liability by structure, no PG needed.
How we ranked these
We weight card-flow mca underwriting (30%), stock and inventory finance fit (20%), decision speed (20%), eligibility breadth (15%), post-decline acceptance (15%). Rankings reflect our published editorial methodology, not any commercial arrangement. The full basis is in our methodology, linked below.
Methodology weights
Weights specific to "Best UK business loans for retail":
- Card-flow MCA underwriting30%
- Stock and inventory finance fit20%
- Decision speed20%
- Eligibility breadth15%
- Post-decline acceptance15%
Read the full methodology for how we score and rank the lenders we review.
Also considered
- Specialist stock-finance lenders
- Wayflyer (DTC marketing-spend)
Not for
Pre-revenue brands; sub-6-month-trading retailers without card history.
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Send an enquiry →FundBiz is owned and operated by Best Business Loans Ltd, directed by Oliver Mackman. Editorial by Best Business Loans Ltd (16833937).