Quick answer
Retail businesses usually need funding for stock ahead of peak season, shop refits, point-of-sale and fixtures, or opening another store. Stock purchases that sell through within months suit a line of credit or a short loan. Refits and new stores suit longer-term funding, often property-secured from $20,000 to $5,000,000. Trading shops with steady card takings can access unsecured options, typically $5,000 to $500,000.
Key points
- Retail cash flow peaks and troughs around the calendar — plan funding around your peak.
- Stock that sells within a season suits short-term, flexible funding.
- Refits and new stores need longer-term funding matched to their payback.
- Daily card takings in one account make your trading easy for lenders to read.
- Unsecured
- Typically $5k – $500k
- Property-secured
- $20k – $5m
- Purpose
- Business purposes only
Retail runs on a calendar. Back to school, Mother’s Day, EOFY sales, the long run-up to Christmas, then the January clearance — each one shapes when money goes out on stock and when it comes back through the till. Get the timing right and funding becomes a tool. Get it wrong and it becomes a weight.
This page helps shop owners work out which funding suits which retail need, and how to keep repayments comfortable across the whole year.
How does cash move through a retail business?
- Stock first, sales later. You pay suppliers — often weeks or months ahead — before a customer walks in.
- Peaks and troughs. Most shops take a big share of their year’s sales in a few peak periods.
- Daily takings. Card settlements arrive daily, giving lenders a clear view of trading.
- Fixed costs. Rent, wages and utilities don’t flex much when sales dip.
- Periodic big spends. Refits, new fixtures, point-of-sale systems and signage.
Which option suits which retail job?
| What you need | Tends to suit | Why |
|---|---|---|
| Peak-season stock | Line of credit or short loan | Repaid as the stock sells through |
| Bulk-buy discount from a supplier | Short loan | Only if the discount outweighs the funding cost |
| Shop refit or new fixtures | Longer-term loan | Pays back over several years |
| Opening another store | Property-secured or larger unsecured loan | Bigger amount; allow for ramp-up time |
| Quiet-month wages and rent | Line of credit | Draw and repay as needed |
| Clearing an ATO debt | Case by case | Keep lodging regardless |
Our stock funding guide goes deeper into timing stock purchases around your season.
What do lenders look at for a retail shop?
- Bank statements showing daily card takings and how the business handles quieter months.
- Stock turn. How quickly stock converts to sales tells a lender whether cash is getting stuck on shelves.
- Lease details. The remaining term and any options to renew.
- Lodgements. BAS on time and tax returns up to date.
- Your plan for the money. “Stock for confirmed Christmas demand” reads very differently from “general working capital”.
If you’d like a real person to look at your shop’s numbers, start a 60-second enquiry — there’s no credit check when you first enquire.
How do you know if a stock purchase is worth funding?
Borrowing for stock works when the stock turns into cash quickly enough to repay the funding with margin to spare. A simple coaching test:
- Estimate the sell-through. How much of this stock will realistically sell, and by when?
- Work out the margin. What’s left after the cost of the stock and the cost of the funding?
- Plan for leftovers. What happens to the stock that doesn’t sell — discount, return or carry over?
- Check the timing. Will the cash come back before the repayments start to bite?
If the answers are comfortable, funding can help you capture a peak you’d otherwise miss. If they’re tight, buy less and reorder.
What about retail shops that also sell online?
Many retailers now run a physical store and an online store side by side. That can strengthen your position — two income streams — but it can also complicate the picture if online payouts land in a different account. Keep all sales flowing into your main business account where you can. Our online stores page covers the ecommerce side in more detail.
An illustrative example
Illustrative only. A homewares boutique in a suburban shopping strip does a large share of its annual sales between October and December. The owner wants to take a bigger Christmas order this year, because last year she sold out in early December.
Her funding plan ranks a line of credit first — she can draw on it for the supplier payments in September and October and repay it through December takings. It also suggests sizing the order around her realistic sell-through, not her best-case hope, and flags her last two years of December bank statements as useful evidence.
What should a shop owner have ready?
- Photo ID and ABN (plus ACN if you trade through a company)
- Last six months of business bank statements — ideally including a peak period
- BAS lodged and up to date
- Your lease and remaining term
- Supplier quotes or order confirmations
- Property details if you’re offering security
The funding profile builds a personalised checklist for you based on your answers.
How do you handle the January dip?
For many shops, the weeks after Christmas are the quietest of the year, just as supplier bills for peak stock fall due. Plan for it in October, not January: agree supplier terms that land after your peak takings, keep part of your December sales aside, and know how your limit or buffer will cover the dip. A shop that plans the dip rarely needs emergency funding to get through it.
Shop owners: let’s time your funding to your season
Retail rewards good timing, and so does good funding. We’ll help you match the option to the need — stock, refit or a new store — so repayments sit comfortably across your whole year.
A quick enquiry takes about a minute and doesn’t trigger a credit check. We don’t pass your details around a crowd of lenders; a real person reads your situation and rings you. Please answer the form honestly and accurately — takings, stock plans and any property — so we can match you properly straight away.
Frequently asked questions
How should I fund Christmas stock?
Stock that will sell within a few months suits a line of credit or a short-term loan that's repaid as the stock sells. Avoid tying up long-term money in short-term stock.
Can I get a loan to open a second shop?
Yes, if your first store trades well. Lenders will look at its bank statements and your plan for the new site. Larger amounts, including the fit-out, often suit a property-secured loan.
What if my sales dropped this year?
It's worth explaining why — a road closure, a lost supplier, a changing shopping strip — and what you've done since. Recent months of steady trading help, and property security can bridge the gap.
Do lenders care about my stock levels?
They're interested in how quickly stock turns into sales. Slow-moving stock ties up cash. Knowing your stock turn shows you understand your own business.
Is there a minimum turnover for a retail loan?
It varies by lender and option. Unsecured options are sized on turnover and bank statements, so the stronger and steadier your takings, the more you can generally access.