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Demand for Start Up Loans financing to start a retail business up 22% year-on-year in December 2024

Press release 05 February 2025

Despite reported pessimism in the retail sector, Start Up Loans data shows a similar number of business owners sought finance in 2024 as they did in 2023

Data from Start Up Loans shows that year-on-year demand for its financing to start a retail business has held up, remaining at 6% of the total volume of loans in 2023 and 2024. Furthermore, demand for Start Up Loans to finance retail businesses rose by a staggering 22% in December 2024.

While Office for National Statistics figures show retail sales fell in December, data from Start Up Loans shows demand for its finance and support rose. In December 2023, 32 loans were provided to retail business owners. In December 2024 this rose to 39, an increase of 22%.

Start Up Loans data shows many business owners seeking start up financing and support favour starting a business in the retail sector. The sector overall is the most popular among applicants for a Start Up Loan, followed by hospitality and construction.

Start Up Loans also recently revealed that the period between Christmas and New Year was a time many aspiring entrepreneurs used to find out more about setting up a business. Using website traffic analysis, Start Up Loans found that during the period of 26th December - 1st January there were nearly 11,000 (10,938) users who visited the Start Up Loans website and there were 1,800 downloads of business guides from the website, with the business planning templates being the most popular.

Richard Bearman, Co-Chief Banking Officer, British Business Bank commented:

It is fantastic to know from the data that Start Up Loans is providing opportunities for aspiring retail entrepreneurs up and down the country. If we want to revive our high streets and create globally successful e-commerce companies then it is vital entrepreneurs have access to finance and mentoring support. It is reassuring in many ways to see that despite some negative data around the sector there are entrepreneurial people out there willing to set up a retail business. This is important for economic growth and for creating jobs.

Among the most well-known retail brands supported by Start Up Loans is sportswear brand, Castore. Another growing Start Up Loans-supported business is Robin Valley.

Case study – opening of first physical retail store

Liverpool-based Robin Valley previously operated as a wooden jewellery wholesaler, but has now opened its first physical store in the Arndale Centre, Manchester.

The business supplies over 100 well known retailers, including the English Heritage, National Trust, WWF-UK, Sealife Centres, and Science Museum Group and has 20 employees.

The opening marks a significant milestone in the business’s rapid growth since it secured a £15,000 Start Up Loan from the British Business Bank’s Start Up Loans programme in 2023.

Further Information

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Notes to editors

About Start-Up Loans

The Start Up Loans programme provides personal loans for business purposes of up to £25,000 at a 6% fixed interest rate per annum and offers free dedicated mentoring and support to each business. 

The funding for the Start Up Loans programme is provided by the Department for Business and Trade (DBT). 

The primary aim of the Start Up Loans programme is to help ensure that viable start-ups and early-stage businesses have access to the finance and support they need in order to thrive. A network of Business Support Partner organisations supports applicants in all regions and industries throughout the UK.

The Start Up Loans programme is operated by The Start-Up Loans Company, a company limited by guarantee, registered in England and Wales, registration number 08117656, registered office at Steel City House, West Street, Sheffield, S1 2GQ.

The Start-Up Loans Company is a wholly owned subsidiary of British Business Bank plc which is a development bank wholly owned by DBT.

British Business Bank plc and its subsidiaries are not banking institutions and do not operate as such. They are not authorised or regulated by the Prudential Regulation Authority or the Financial Conduct Authority. 

Free guides on a range of subjects related to starting a business are available on the Start Up Loans website: Free Start up Guides .You can find recent media press releases here: Media-centre

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