Business loans for retail shops: stock, fit-outs and the new rules on card payments

From 1 October 2026, the small sign by the till saying “1.2% surcharge on card payments” became a thing of the past. The Reserve Bank’s review of retail payments ended surcharging on eftpos, Mastercard and Visa debit and credit cards, while lowering the interchange fees banks charge on domestic card payments. For shop owners who had been passing card costs on, that fee now comes out of the margin.

It’s a useful starting point for any conversation about retail finance, because margin, stock and timing are exactly what lenders look at when a shop asks to borrow.

What changed for shopkeepers in 2026?

Two changes affect retail cash flow this year.

Card surcharges are gone for the main schemes. The RBA’s conclusions paper, released in March 2026, set 1 October 2026 as the date surcharging on debit and credit cards should end, alongside lower caps on interchange fees for domestic debit and consumer credit cards. The aim is that lower wholesale costs flow through to merchants. Whether your own costs fall depends on your payment provider and plan, so check your next statement carefully and ask for a quote from a competitor if the numbers haven’t moved.

Super now follows every pay run. Since 1 July 2026, employers have had to pay superannuation each time they pay wages rather than quarterly. Retailers with large casual workforces now have a steadier, more frequent outflow. Shops that used the quarter as an informal buffer have lost it. Our page on paying superannuation explains how to plan for it.

Neither change makes shops harder to lend to. They do mean any forecast you show a lender should reflect this year’s costs, not last year’s.

What do retail shops usually borrow for?

• Seasonal stock. Christmas, Mother’s Day, back to school and end-of-financial-year sales all require buying ahead; our page on financing seasonal stock covers the timing.
• Fit-outs and refits. Shelving, counters, lighting, flooring and signage for a new store or a tired one. Our shop fit-out page breaks down which parts suit equipment finance.
• Lease security. Many landlords want a bank guarantee, often equal to several months’ rent, before handing over the keys.
• Systems and equipment. Point-of-sale hardware, security cameras, refrigerated displays and delivery vehicles.
• A second store. Rent, fit-out, staff and stock all at once, before the new shop earns a dollar.
• Quiet months. February and the middle of winter can be lean for many retailers.

If stock orders are due and the bank is slow, send us the details. A specialist reads them, and your credit history is untouched by the enquiry.

How do lenders read a shop’s numbers?

Banks are a strong option for retailers with two or more years of profitable trading, clean tax lodgments and property security. Their pricing is usually the lowest, and an established shop that fits their criteria should take the bank’s offer seriously.

Non-bank lenders tend to look at four things:

Lender focus	The reason
Card takings and deposits	Shows real, recent trade and how it moves through the year
Gross margin	A shop with a 55% margin can absorb a slow month far better than one at 25%
Stock turn	Stock that sits for six months ties up cash; fast-moving stock repays a loan
Lease term remaining	A loan longer than the lease is a risk if the landlord won’t renew

The margin and markup calculator helps you work out your true gross margin, which is worth knowing before a lender asks. If you’re financing fixtures in leased premises, some lenders also ask for a landlord waiver so they can recover equipment if things go wrong.

Finance repaid from your takings: quick, but check the cost

Several lenders offer funding repaid automatically as a share of daily card sales or through daily or weekly debits. For a busy shop, the appeal is obvious: it’s fast, unsecured and repayments rise and fall with trade.

The catch is cost. These products often quote a fee or a factor rate rather than an interest rate, which makes them hard to compare. Turn the fee into a total dollar amount and set it beside a line of credit or short-term business loan for the same sum. Be wary of adding another advance while one is still running; stacked repayments can quietly consume most of a shop’s daily takings. Our comparison of a merchant cash advance versus a business loan sets out the differences.

What should you prepare?

1. Recent business bank and merchant statements, half a year at minimum and a full year for bigger requests
2. Your current lease and any renewal options
3. Recent BAS lodgments and an ATO account statement
4. A stock summary: current value, recent turn and what’s on order
5. Supplier quotes for fit-outs or equipment
6. Financial statements for the last two years for larger loans or bank applications

Example: a gift and homewares shop before Christmas

Fictional, for illustration only. A gift and homewares shop in Hobart turns over about $1.1m a year, and close to 30% of the year’s sales land in the final two months. Suppliers want payment for Christmas orders by early October. This year the owner wants to buy deeper, around $140k of stock, because last year’s best sellers ran out before Christmas week.

The bank offers an overdraft increase but can’t finalise it for six weeks. The owner instead arranges a $120k credit limit with a non-bank lender, draws it in stages as orders are confirmed, and repays most of it from December takings. They also review their card payment plan after the surcharge ban and switch providers, saving enough each month to cover a good share of the credit line’s cost.

Getting your shop ready for the next season

Retail is a business of buying early and getting paid later. The owners who do best tend to line up their funding before they need it, not on the day suppliers call.

If you’d like that conversation now, our enquiry form is the place to begin. Expect to spend about sixty seconds on it, and know that your credit rating isn’t touched just because you asked. Your shop’s details aren’t shopped around: they stay with us, and the phone calls you get will be from one person who has actually read them. Honest numbers for turnover, the amount you need and its purpose let us match the right finance on the first go.

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