Everything you need to know about Independent Retail Finance

a woman handing a bag to another woman

There’s nothing better than finding a diverse, high street filled with unique shops that offer an alternative experience to just large retail chains or browsing online and finding a perfect gift that you wouldn’t normally be able to get anywhere else.

Independent retailers make shopping fun and convenient. They give people the option of supporting small businesses and buying locally. In fact, most shoppers (63%) would prefer to shop at independent stores.

However, small and independent shops are facing a tough time (along with the rest of the retail industry). Last year, nearly 2,000 independent shops were forced to close after rising inflation and other poor economic conditions drove costs up and squeezed customer spending budgets. But there is help available.

Retail Finance offers a financial solution that can shore up working capital to help independent shopkeepers get through tough patches, as well as investing and growing their business. It can also be the key for budding entrepreneurs who are looking for some starter cash to allow them to achieve their dream of opening their own shop.

What is independent Retail Finance? 

Retail Finance is a blanket term for the various financial support packages that are available to retail businesses. This type of finance is tailored to support small or independent retailers such as boutique shops, convenience stores, groceries, bakeries, pharmacies, electronic stores, clothing stores, petrol stations, garden centres and any other kind of shop – even small e-commerce companies.

Below, we explore the most commonly used independent retail finance products.

Business Loans 

Business Loans are a straightforward way of securing extra cash to help you invest and grow. They can even be used simply as extra working capital to give you breathing room to cover day-to-day expenses. You can use the loan as you see fit, whether opening a bigger shop, investing in a new product line or taking on an extra staff member. The loan is paid straight into your bank account, and the terms can be very flexible, depending on your needs. 

Equipment Finance and Fit Out Finance 

Getting your shop ready to open is one of the most exciting parts of working in retail, especially if you’re independent. You get to put your own personal stamp on things to create a memorable retail experience for your customers.

Equipment Finance covers virtually every sort of asset, such as technology, furniture, fittings and decoration. It can even cover less tangible things, such as software. It comes in many forms, primarily Operating Lease, Finance Lease and Hire Purchase. It’s pretty accessible too, because the equipment itself is the main form of security.

Fit Out Finance is very similar to Equipment Finance, it just focuses specifically on kitting out your shop. This includes fixtures and fittings, so lighting, flooring, HVAC, electrics, plumbing, etc would all be covered. Any hardstanding displays, shelving, counters or other shop fixtures would also be included.

Independent retailers might use Equipment Finance and Fit Out Finance for:

  • Point of Sale (POS) equipment and software, including till and card machine
  • Inventory management software
  • Shelving
  • Racking
  • Display units
  • Customer Relationship Management (CRM) software
  • E-commerce websites
  • Dressing rooms
  • Seating
  • Lighting fixtures
  • Security cameras
  • Mirrors
  • Signage
  • Logos
  • Mannequins
  • Refrigeration units
  • Coffee machines 
  • Shopping carts and baskets
  • Bakery ovens
  • Security alarms
  • Fuel pumps
  • HVAC

As you can see, it covers everything you need to get your shop up and running – and this list isn’t comprehensive. Any form of asset, hardstanding or freestanding, tangible or intangible, can likely be funded. If any equipment needs installing, the installation can also be covered through finance. You can use it to fit out a new shop or to revamp an existing premises. 

New Start Finance 

New Start Finance is a tailored package for those who have made the exciting and ambitious decision to open their own independent shop or online commerce business. As such, it covers everything you’ll need to get started, including equipment and fit out, as well as working capital to help fund things like your initial stock order, rent payments, and hiring staff.

Can finance payments for independent retailers be seasonal? 

Everyone knows that retail trade is seasonal, with most businesses making their profit during the festive period with Black Friday and Christmas sales. This means that cash flow might be tighter during the slower months of trading – especially if you’re a small business without huge reserves to draw on.

Luckily, finance payments for independent retailers can be seasonal, meaning you can pay more during peak periods and less during quieter months.

How Origin Finance can help 

At Origin Finance, we want to see independent retailers thrive. We have a long history of supporting independent businesses, helping them to find the right financial package to cover their needs.

As a broker, we have access to retail-specific lenders who will understand your situation and requirements, giving you the best possible chance of success. We’ll also help put the paperwork together to ensure that your application shines. There’s no fee for this service, as we’re remunerated by the lenders.

Drop us a line for a free, no-obligation quote to learn more about how we can help.

If you liked this article, you may also enjoy reading:

Leave a Comment

Your email address will not be published. Required fields are marked *

Contact Us

Scroll to Top