How do you finance the opening of a new retail location?

Justus Hayes - Research ·
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Financing a new retail location requires a combination of equity, external financing, and a realistic cost estimate. Most starting retail entrepreneurs need at least 30 to 50 percent of their own capital to qualify for additional financing. How you arrange the rest depends on your concept, location, and growth strategy. This article answers the most frequently asked questions about financing a store opening.

What are the average startup costs for a new retail location?

The startup costs for a new store range from tens of thousands to more than a hundred thousand euros, depending on the location, size, and interior design. The largest cost items are the first rental payments (including security deposit), the renovation or fit-out of the premises, the initial inventory, and the startup costs for marketing and staff.

A security deposit of three to six months’ rent is standard with most landlords. Add to that: the costs for an architect or contractor if the premises need to be renovated, point-of-sale systems, furniture, lighting, and any modifications to the facade. Renting a retail space in a busy shopping street in Utrecht or Rotterdam costs considerably more per square meter than in a mid-sized city. That location-dependent rent directly affects the total startup capital you need.

For an average retail concept of 80 to 150 m², expect a total startup investment of between 60,000 and 150,000 euros, excluding working capital for the first operational months.

What financing options are available for a new store?

For financing a store opening, several options are available: a business bank loan, microcredit, crowdfunding, an investor, or a combination thereof. Which option fits best depends on the amount needed, your equity position, and the speed at which you want to start.

Business bank loan and microcredit

A business bank loan is the most common route for entrepreneurs with a proven concept and sufficient collateral or equity. Banks typically finance a maximum of 70 percent of the total investment and expect a solid business plan with realistic revenue projections. For smaller amounts, up to approximately 50,000 euros, microcredit through organizations such as Qredits is a more accessible option with guidance for starting entrepreneurs.

Crowdfunding and investors

Crowdfunding through a retail-focused platform can work if you have a compelling story and a loyal community. The downside is that it takes time and is not guaranteed. A private investor or informal investor provides capital more quickly, but typically requires a stake in the business or a return expectation. Make sure you fully understand the terms before agreeing.

Is a starting retailer eligible for subsidies or schemes?

Starting retail entrepreneurs can make use of various schemes in 2026, including the BMKB (Borgstelling MKB-kredieten), the KKC (Klein Krediet Corona, now converted to regular SME credit), and local entrepreneur funds that vary by municipality. A direct subsidy for opening a store is rare, but guarantee schemes significantly lower the threshold for bank financing.

Through the BMKB, the government guarantees part of your loan, making banks more willing to provide financing. Some municipalities also offer establishment premiums or rent subsidies in vacant retail areas they want to revitalize. It is worthwhile to inquire with the municipality where you want to establish your business about which local schemes are available. Also check with the Chamber of Commerce for current starter schemes.

How do you determine how much financing you really need?

You determine the required financing by adding up all one-time startup costs, the working capital needs for the first six months, and a financial buffer for unforeseen expenses. Many entrepreneurs underestimate the working capital and the time it takes before the store becomes profitable.

A practical method is to draw up a monthly cash flow forecast for the first year. Set that against your expected revenue, taking into account a startup period of three to six months. Add a buffer of at least 15 to 20 percent on top of your calculated costs. Entrepreneurs who finance too tightly risk that a setback in the first year immediately becomes existential.

When determining the rental burden, it is crucial to know what a market-rate rent is for your desired location. Guidance on renting retail space from a specialized retail agent helps you avoid overpaying and realistically incorporate the total rental burden into your financing plan.

What are the financial risks of a long-term lease?

A long-term lease ties you to a fixed rental burden for several years, regardless of how your revenue develops. The biggest financial risk is that if results disappoint, you cannot simply leave without significant costs. Standard lease agreements in the retail market have a term of five years, sometimes with an option to extend.

Specific risks to take into account:

  • No or limited break option: without a contractual exit clause, you are bound to the full term
  • Rent review: after the contract period, the rent can be revised based on market conditions
  • Service charges: in addition to the base rent, you pay service charges for management, cleaning, and shared facilities, which can add up
  • Liability in case of bankruptcy: even upon business closure, you remain in principle liable for the remaining rental period

Negotiating a break option after year three is a sensible protection for starting retailers. Make sure the lease terms are thoroughly reviewed before you sign.

When is it smart to bring in a retail specialist for financing?

It is smart to bring in a retail specialist as soon as you are seriously looking for a location and want to base your financing plan on realistic rental figures. A specialist gives you insight into market-rate rents per street and city, which directly affects how high your financing needs turn out to be.

A specialized retail agent such as KroesePaternotte has lease data going back to 1984 and has access to locations that never appear on public portals. That makes a real difference: your financing plan is based on what a location actually costs, not on an asking price that is still negotiable.

Specifically, a retail specialist helps you with:

  • Assessing whether a requested rent is in line with the market
  • Negotiating rent-free periods or landlord contributions to fit-out costs (tenant incentives)
  • Identifying contractual risks that could affect your financing
  • Gaining access to non-public listings at prime locations in cities throughout the Netherlands

Tenant incentives, such as a rent-free startup period or a landlord contribution to the renovation, are a real part of the negotiating room in the Dutch retail market. Those who are unaware of that room or do not dare to use it are leaving money on the table that could have directly benefited their financing needs.

Want to know what a realistic rent is for the location you have in mind? View the current retail listings or contact KroesePaternotte directly for a market-driven assessment of your location plan.

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