What Details Do Lenders Look For in EPOS & Card Statements for Retail Finance?

Summary: If you run a shop, café, or ecommerce business that accepts card payments, your EPOS/card statements are a primary piece of evidence lenders and brokers use to assess retail finance requests (working capital, stock or asset finance, merchant cash advance, revenue-based lending and term loans from £10,000 upwards). This guide explains exactly what underwriters check on EPOS statements, how to prepare files for review, and a ready-to-print checklist to increase your chances of a clean, fast assessment.

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Why EPOS & Card Statements Matter to Lenders

Lenders and brokers rely on real transactional evidence to verify trading performance, not just bank balances or management accounts. EPOS and card statements show the flow of sales, seasonality, average ticket size, refund and dispute patterns, and the split between card and cash — all vital for assessing affordability and risk.

For revenue-based products (merchant cash advance, daily repayment facilities) underwriting is directly linked to card receipts. For term loans and asset finance, consistent EPOS turnover reassures lenders that repayments are affordable. In short: clear, reconciled EPOS statements reduce friction and often produce better offers.

Note: UK Business Loans is an introducer — we do not lend. Complete our free enquiry and we’ll match you with brokers and lenders who specialise in retail finance.

The Core EPOS/Card Statement Details Lenders Check

Below is a practical checklist of the most common items underwriters review. Each item affects how lenders view risk and structure offers.

A) Trading Date Range & Frequency

Lenders want a continuous trading history. Typical asks:

• Merchant cash advance / revenue finance: at least 3 months (often 6+ desirable).
• Term loans: 6–24 months depending on size and security.

Gaps, missing days or sudden unexplained stops require explanation (e.g., refurbishment, seasonal closure).

B) Gross Card Turnover (Total Sales)

Underwriters look at monthly totals and trends. They compare EPOS totals vs declared turnover and bank deposits. Steady or rising turnover supports larger facilities; sharp declines reduce capacity.

C) Net Receipts & Settlement Patterns

How quickly transactions settle into your bank account (daily, next-day, weekly) and any irregular payout patterns matter. Delayed settlements, frequent withheld funds, or large reserve deductions reduce usable cashflow.

D) Average Transaction Value & Volume

High volume of small transactions is different risk to fewer, larger sales. Lenders use average ticket and transaction count to estimate repayment burden and fraud risk.

E) Card vs Cash Split

EPOS shows card takings — if cash is material, lenders want reconciled till rolls or cash books. Significant mismatches between EPOS and bank deposits raise queries.

F) Refunds, Chargebacks & Disputes

High refund or chargeback rates are a red flag. Lenders review trends, reasons recorded, and any recurring customer disputes which could indicate product/service or supplier problems.

G) Refund / Returns Policy Evidence

Clear documented returns/refund policies (website or printed till notices) show you manage disputes. Lenders note this when chargebacks exist.

H) Merchant Category Code (MCC) & Business Description

Statements often include an MCC or descriptor. Lenders verify activity matches the facility purpose (retail stock finance vs hospitality working capital) and that high‑risk categories are handled appropriately.

I) Third‑party Platforms & Split Payments

If you use aggregators (SumUp, Square, Shopify Payments, Stripe), provide provider statements plus a reconciliation showing fees and payouts. Aggregator fees and holds can materially change your net receipts.

J) Fees, Withholdings & Reserves

Statement lines for processing fees, chargeback recoveries or reserves should be visible. Lenders need to model net cash available after these deductions.

What Format and Supporting Documents Lenders Prefer

Provide clear, verifiable files. Preferred items include:

• Official PDF merchant statements or CSV exports from your EPOS/payments provider (not cropped screenshots).
• Bank statements showing settlement transactions from the payments provider into business accounts.
• Till reports or daily sales reconciliation, especially where cash sales are present.
• VAT returns (if applicable) and management accounts to corroborate EPOS totals.
• A short explanatory note for unusual items (one-off large deposits, refunds, or transfers).

Presentation tips: ensure timestamps, headings and merchant ID are visible. If doing manual reconciliations, include a cover sheet mapping EPOS daily totals to bank settlements.

How Lenders Use EPOS Data to Decide Loan Size & Terms

Underwriters take EPOS data and build a simple cashflow model: expected gross card receipts → subtract processing fees and an allowance for refunds/chargebacks → apply a repayment mechanism or affordability test.

Examples of outcomes:

• Merchant cash advance: size is usually a percentage of average monthly card turnover and daily repayments are set as a fixed percentage of card receipts.
• Revenue-based facilities: lenders set a cap based on recurring monthly card income and volatility; high variability reduces size or increases margin.
• Term loans: lenders look for consistent monthly surplus after expenses to cover fixed monthly repayments; stable turnover → larger loan/lower pricing.

Volatility, high refund rates or reliance on a single large customer lowers offers or may trigger requests for security or guarantors. Clear EPOS evidence and explanations for anomalies often produce better pricing and faster decisions.

Common Questions Retailers Ask

How many months of EPOS statements do lenders need?

Typically 3–12 months. The product type dictates the minimum — revenue products need less history than larger term facilities.

Will refunds or chargebacks stop me getting finance?

No — but lenders will investigate frequency and reason. Provide documentation showing reasons and remedies (improved processes, staff training, clearer returns policy).

What if I use multiple EPOS providers?

Supply each provider’s statement and one master reconciliation showing combined daily/weekly sales and how payouts reached your bank account.

Do lenders accept screenshots?

They prefer official statements (PDF/CSV). Screenshots may be used initially but expect a request for original provider exports later.

Will providing EPOS data affect my privacy?

Data is used to assess finance suitability. The enquiry is not a credit application — check the provider’s privacy policy for full details.

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Quick Checklist: Preparing EPOS/Card Statements for Lenders

• Collect 3–12 months of merchant/EPOS PDFs or CSVs.
• Include bank statements showing payouts from payment providers.
• Create a reconciliation (daily or weekly) mapping sales → fees → net payouts.
• List refunds/chargebacks with reasons and dates.
• Provide proof of returns policy (web link or till printout).
• Explain one‑off items (large deposits, refunds, or transfers) in a short cover note.

How UK Business Loans Can Help

Complete our short enquiry form and we’ll match your retail business with brokers and lenders who specialise in retail finance. Our introducer service is free and without obligation — brokers contact you to request documents and provide quotes. We help you save time and increase the chance of a fast, informed response for loans from £10,000 upwards.

Relevant internal resources: UK Business Loans, How it works, Business Loans, Asset Finance, Stock Finance, Enquiry / Get a Quote, Privacy Policy, FAQs.

If you operate a retail outlet and want sector-specific guidance, see our retail industry page for more tailored support: Retailers & Shop Business Loans.

Important Disclaimers & Compliance Info

UK Business Loans is an introducer — we do not lend or provide regulated financial advice. Any finance offered by brokers or lenders will be subject to their eligibility checks, terms and conditions. Completing our enquiry form is not a loan application and should not be treated as such.

Author & Experience

Written by the UK Business Loans Content & Lending Partnerships team. We specialise in connecting UK retailers with brokers and lenders and have guided hundreds of businesses through preparing loan documentation and merchant statement reconciliations.

FAQs

1. How quickly will I get a quote? Often within hours during business hours; timing depends on broker availability and document readiness.
2. Is the enquiry form a credit application? No — it is an information form to match you with lenders/brokers.
3. What loan sizes are available? Our partners typically arrange loans from around £10,000 upwards.
4. Do I need VAT returns? VAT returns help corroborate turnover but are not always required, depending on lender and product.
5. Will a lender run a credit check? Brokers may perform checks later in the process; submitting an enquiry does not automatically trigger a credit search.
6. What if I’m seasonal? Provide 12–24 months if possible; lenders assess seasonality and may structure repayments to reflect peak and off-peak periods.

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Completing the form takes under 2 minutes. No obligation. We pass your enquiry to lenders and brokers who may contact you about options.

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Images suggested for the page:

• image1-epos-statement-sample.jpg — alt: “Example EPOS merchant statement showing daily card turnover”.
• image2-retailer-till.jpg — alt: “Retail shop using a card terminal for customer payments”.

1. What documents do lenders need to assess a retail business loan? — Lenders typically want 3–12 months of official EPOS/merchant statements (PDF/CSV), bank statements showing settlements, a daily/weekly reconciliation of sales → fees → net payouts, and supporting docs like VAT returns and refund logs.

2. How many months of EPOS/card statements do I need to provide? — Usually 3–12 months depending on product (merchant cash advance/revenue finance often 3–6 months; term loans commonly 6–24 months).

3. Will refunds or chargebacks stop me getting finance? — Not automatically, but high or rising refund/chargeback rates are a red flag and lenders will ask for explanations and evidence of mitigation.

4. Can I submit screenshots of my EPOS statements? — Lenders prefer official PDF/CSV exports from your EPOS/payments provider; screenshots might be used initially but are often requested again in original format.

5. How does EPOS data influence the loan size and repayment terms? — Underwriters model gross card receipts minus fees and expected chargebacks, then stress‑test volatility to determine loan size, repayment structure and pricing.

6. What if I use multiple EPOS providers or aggregators (Square, SumUp, Shopify)? — Provide each provider’s statement plus a master reconciliation that maps daily/weekly sales, fees and payouts to your bank account.

7. Will submitting an enquiry through UK Business Loans trigger a credit check or count as a loan application? — No — the free enquiry is only to match you with brokers and lenders and does not trigger a credit search or constitute a formal application.

8. How quickly will I receive quotes or contact after submitting an enquiry? — You can often expect a response within hours during business hours, depending on broker availability and how ready your documents are.

9. What format and reconciliation help speed up underwriting? — Clear PDF/CSV merchant statements, bank settlement lines, a single reconciliation sheet showing gross sales → fees → refunds → net payouts, and a short cover note explaining anomalies are ideal.

10. Can seasonal businesses or startups get retail finance and what extra evidence is helpful? — Yes — seasonal businesses should supply 12–24 months to show patterns, while startups should provide all available EPOS history plus forecasts, management accounts and any corroborating documents to improve lender matching.