Finance by industry
Retail and hospitality finance
Busy and quiet seasons, stock bought ahead and fit-outs paid up front. Here is how finance is commonly used to smooth the bumps.
How money moves in retail and hospitality
Shops buy stock well before the busy season sells it. Cafés, restaurants and venues have quiet months, and a fit-out or a new kitchen costs a lot before it earns anything.
Finance is often used to pay for stock and fit-outs now and repay them from sales over time, and to keep a buffer for the quiet months.
Finance commonly used
- Business loan: a set amount over a set term, for example for a fit-out or a second location.
- Equipment finance: for kitchen and bar equipment, point-of-sale systems and fridges, usually with the equipment as security.
- Line of credit or overdraft: a limit to draw on for stock and wages through quiet months.
- Working capital finance: short-term money to buy stock before a busy season.
Documents usually asked for
- Recent business financial statements or tax returns
- Business bank statements and sales history
- Your shop or venue lease
- Quotes for the fit-out or equipment
- Any licences your business needs
- Photo ID for the owners or directors
Every lender decides what it needs, so you may be asked for more or less. The document checklist builds a list for your type of finance and country.
Free tools that help
They work in your browser with your own numbers. Nothing is sent or saved.
- Cash-flow planner 12 months of money in and out, with the short months marked.
- Line of credit estimator a year of interest and fees from your planned draws.
- Break-even calculator whether a financed purchase pays for itself.
- Buy outright or finance? paying cash compared with financing equipment.
- Tax set-aside helper the GST, VAT or sales tax to have ready by the due date.
Good to know
- Words used on this page: working capital, line of credit, unsecured loan, establishment fee, loan term.
- This is general information about how finance is often used in retail and hospitality. It is not financial, legal or tax advice, and it is not a promise that any lender will approve an application.
- Read Before you borrow for the questions to ask any lender, and see other industries.
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