Retail and e-commerce share one mechanic: you pay for goods before customers pay you. Suppliers want money up front — especially overseas ones — while the stock sits, sells over weeks, and only then becomes cash. The better the season you are preparing for, the bigger the gap you have to fund.
The Q4 problem, and the version of it that happens all year
The obvious case is Christmas: stock ordered in September, paid for in October, sold in December. Three months of your own capital committed before the season proves you right. Get the buy wrong and the money is in boxes, not the bank.
The quieter version happens continuously. A product starts selling faster than forecast, the reorder needs paying up front, and the cash from the last batch has not all landed. Growth demands capital before it supplies it.
What operators in this sector actually fund
- Seasonal stock buys — Christmas, back-to-school, summer ranges
- Reordering a line that is selling faster than forecast
- Bulk purchasing where the unit discount beats the cost of funding
- Paid acquisition spend ahead of a launch, where payback is measurable
- Bridging the settlement gap on marketplace payouts
A £25,000 advance, both terms
An online retailer needs £25,000 to place a Q4 stock order that must be paid up front. The maths on our published rates:
| £25,000 advance | 20 weeks | 26 weeks |
|---|---|---|
| Approved advance | £25,000 | £25,000 |
| Arrangement fee (5%, deducted at funding) | −£1,250 | −£1,250 |
| Paid to your account | £23,750 | £23,750 |
| Factor rate | 1.48 | 1.55 |
| Total repayable | £37,000 | £38,750 |
| Weekly payment | £1,850 | £1,490 |
| Total cost on cash received | £13,250 | £15,000 |
Illustrative, using our published factor rates. Your own rate is set by underwriting and is stated in pounds on your agreement before you sign it.
Whether you qualify
Four minimums. Meeting them is not the same as being approved — it is the point at which applying is worth your time:
- UK limited company or LLP — incorporated and registered at Companies House.
- 6+ months trading — six months is the least we can work with.
- £10,000+ monthly turnover — consistent, and visible in the business bank account.
- Active UK business current account — this is where the underwriting actually happens.
The test worth running before you apply: if £25,000 of stock reliably becomes £40,000 of revenue inside the term, the funding pays for itself. If it becomes £30,000 over nine months, it does not. Do that arithmetic on your own margins first — we would rather you borrowed the right amount.
Why the decision being ours matters here
Retail files often get read badly by panels: a spiky sales pattern, a young company, a marketplace-heavy revenue mix. Because we lend our own money, we can look at the actual pattern in the account rather than filtering on shape. And a fixed weekly payment over 20 or 26 weeks is easy to model against a stock cycle you already know.
Solvo funds £10,000 to £75,000 from its own book, usually within 24–72 hours of final documents. One decision, made by us — your file is not shopped around a panel. Above £75,000 we arrange the facility with a lending partner. A 5% arrangement fee is deducted from the advance at funding.
About 3 minutes. No obligation. Limited companies and LLPs only.
Frequently asked questions
Do you fund e-commerce businesses with no physical premises?
Yes. What matters is that the company is a UK limited company or LLP, trading 6+ months, with £10,000+ monthly turnover through a UK business current account. Premises are not a criterion.
Our revenue is spiky — big months and small ones. Does that rule us out?
No. Spiky is normal in retail. Underwriting looks for a consistent overall pattern and a well-managed account, not identical months.
Can we use the advance for advertising rather than stock?
Yes — it is working capital and how you deploy it is your decision. If the spend has measurable payback inside the term, it is a reasonable use. If it does not, be honest with yourself about that before committing.
How does repayment work?
A fixed weekly payment over 20 or 26 weeks, agreed in pounds before you sign. There is no interest and the total does not move afterwards.
Illustrative only. Solvo Funding is a UK direct lender for limited companies and LLPs and also acts as an intermediary for facilities above £75,000. Advances are subject to underwriting; meeting the minimum criteria is not the same as being approved and we cannot guarantee an offer. Finance for limited companies and LLPs is generally not regulated by the Financial Conduct Authority.