Finance for retailers, online sellers and distributors
From the shop floor to the fulfilment warehouse, a practical guide to matching each cost with a funding route that suits how your business actually gets paid.
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One sector, three ways of getting paid
This hub covers high-street and independent shops, online sellers on their own sites or marketplaces, and wholesale distributors supplying trade customers. They often share a warehouse, a stock problem and a delivery operation, but they get paid very differently. Shops take card and cash at the till. Online sellers wait for payment processor or marketplace payouts and absorb refunds and chargebacks. Wholesalers invoice business customers on credit terms.
Those differences decide which funding routes are realistic. A wholesaler with invoices to established trade customers has options a consumer-facing online shop does not, while a retailer with valuable fit-out equipment may have asset finance options a pure reseller lacks.
Matching costs to funding
Asset finance, meaning hire purchase or leasing, relies on an identifiable asset. Hire purchase normally leads to ownership after all required payments and any option fee; a finance lease does not give automatic ownership. Whether new or used kit is considered depends on the lender and the asset.
Business loans can fund stock, recruitment, marketing and new sites, but they may require security and personal guarantees, and lenders look closely at existing borrowing and how forecasts hold up if sales slow. Software subscriptions and marketing are recurring or intangible costs and are not usually suited to asset finance.
- Racking, conveyors and pick-pack stations: asset finance
- Forklifts and pallet trucks: asset finance
- Shop equipment and POS hardware: asset finance, case by case
- Stock and seasonal buying: loan or working capital
- New stores, channels and teams: business loan
- Issued trade invoices: possibly invoice finance
Selling to consumers brings obligations
Selling online, by phone or by mail order to consumers brings distance-selling duties around customer information, delivery and cancellations, with exceptions for some goods and separate considerations for cross-border and Northern Ireland trade. Those obligations affect refunds and cash flow. Take qualified advice on your position; funding does not change what you owe customers.
Where to start
Separate kit from cash needs
List physical equipment separately from stock, people, marketing and software. They usually belong in different funding conversations.
Know your payment cycle
Map how long cash is tied up from paying suppliers to receiving payouts or invoice settlements, including refunds and returns.
Plan for slower sales
Seasonal dips, marketplace policy changes and returns spikes happen. Test whether repayments stay affordable in a weaker trading period.
Consider not borrowing
Better supplier terms, clearing slow stock or phasing a project can sometimes achieve the same aim without a new commitment.
Costs and risks to weigh
- Asset finance is secured on the equipment and can lead to repossession if payments are missed; personal guarantees may be required.
- Loans for wider costs can also require security and personal guarantees.
- Total cost over the term, including fees and any option fee, should be compared with paying outright or not buying.
- Early settlement can carry charges defined in the agreement.
- Maintenance, support, insurance and software subscriptions are not necessarily included in an equipment agreement.
- VAT, duties and cross-border taxes are business-specific; take accountant advice rather than assuming recovery.
Sorbus Finance is a broker, not a lender, and works with a selected panel of lenders rather than the whole market. Any offer, cost, deposit, security or guarantee requirement depends on the lender's assessment and the agreement itself. Ask for a written breakdown of lender charges and any broker fee. VAT and tax treatment depend on your business circumstances and structure; take advice from your accountant.
Lender and document checklist
- Itemised quotes separating hardware, installation, software and services
- Recent filed and management accounts
- Business bank statements and payment processor or marketplace statements
- Existing borrowing and finance agreements
- Stock position, ageing and supplier terms
- Aged debtor list if you invoice trade customers
- Cash-flow forecast including a slower sales scenario
Related finance services
Sources worth reading
- British Business Bank: What is asset finance?
- British Business Bank: Business loans
- British Business Bank: Working capital finance options
- GOV.UK: Online and distance selling for businesses
General guidance on finance types and distance-selling duties. Not a source for lender terms or legal advice on your obligations.
Who you could speak to
- STEP 1
A conversation with a broker
You talk to a real Sorbus broker about the business, the purpose and what is affordable. No application at this stage.
- STEP 2
Credit placement
If you choose to go further, we prepare the case and decide which lenders on our panel of 150+ are worth approaching.
- STEP 3
Lender assessment
The lender, not Sorbus, underwrites and makes the credit decision. Approval is never guaranteed.
- STEP 4
Documentation
If a lender offers terms and you accept, we help coordinate agreements and payout paperwork with you.
Every step after the first is optional. You can stop after the conversation. Sorbus is a broker, not a lender.
Client journey
Explore real client journeys
Read how real businesses approached a funding goal, what Sorbus arranged and what happened next.
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hello@sorbusfinance.co.ukFrequently asked questions
Can an online-only business get asset finance?+
Yes, if there is identifiable equipment such as packing benches, conveyors or forklifts. Lenders assess the business and the asset; being online-only is not in itself a barrier or a guarantee.
Can I use invoice finance on marketplace sales?+
Generally not. Invoice finance relies on eligible invoices issued to business customers. Consumer sales and marketplace payouts are different and should not be assumed to qualify.
Is shop fit-out finance available?+
Identifiable, removable equipment and POS hardware may be considered. Decorative works, flooring and building alterations are harder to fund as assets and may need a loan.
Can a loan fund stock for peak season?+
Business loans can fund stock, subject to affordability, security and existing borrowing. Consider what happens if stock does not sell.
Do lenders consider used warehouse equipment?+
Appetite for used kit is case-specific and depends on age, condition and the seller.
Does Sorbus Finance lend directly?+
No. Sorbus Finance is a broker working with a selected panel of lenders, not the whole market.
Talk through your retail or distribution plans
Tell us how you sell, what you need and how you get paid, and an adviser can explain which routes may fit.