Buying an off licence?

An established off-licence with a loyal local customer base is a steady, financeable business. Alcohol, convenience lines, tobacco, and services such as parcel collection combine to produce consistent weekly trade — and a premises licence with a clean history is itself a significant part of the value that lenders assess alongside the trading figures. A well-run off-licence with a full alcohol licence, strong weekly takings, and a diversified product range is a more fundable proposition than many buyers expect.

What lenders look at

Weekly takings and gross margin are the foundation. Lenders will examine the weekly turnover — verified from till data, bank statements, and VAT returns — and the gross margin across the product mix. Off-licence income is assessed across alcohol sales, convenience grocery lines, tobacco, and any additional services. A store generating consistent weekly takings across a diversified product range — spirits, wines, beers, soft drinks, snacks, and convenience lines — is a more fundable proposition than one heavily dependent on a single product category. Delivery platform income from services such as Gophr or Deliveroo — where licensed off-licences can deliver alcohol for home consumption — is assessed alongside in-store trade and adds verifiable digital income to the application.

The premises licence is assessed as a central component of the overall value. A full premises licence authorising the sale of alcohol for consumption off the premises — with a clean compliance history and no conditions, warnings, or review history — is a significant asset that lenders assess alongside the trading figures. The licence is personal to the premises and the incoming owner must be approved as a designated premises supervisor by the licensing authority. Any licence conditions, historic compliance issues, or outstanding reviews need to be disclosed and addressed in the application — a licence with an adverse history carries a risk that lenders price carefully.

Stock funding and supplier terms are reviewed as part of the overall deal structure. Off-licences carry significant stock value — lenders will want to understand how the current stock is funded, the supplier payment terms, and whether any stock finance or credit arrangements are in place. The stock valuation at the point of acquisition forms part of the overall purchase price and affects the total funding requirement. A well-managed stock profile with strong supplier relationships and sensible credit terms is a more confident lending proposition than one with extended supplier credit or single-supplier dependency.

The lease and premises are assessed carefully. Most off-licence acquisitions are leasehold — lenders will examine the remaining lease term, the annual rent, and the rent-to-turnover ratio. Location is particularly important for off-licences — a prominent position on a busy residential road, near a transport hub, or adjacent to food and drink outlets generates consistent footfall that lenders assess as a primary indicator of trading sustainability. The cold storage capacity, security arrangements, and CCTV provision of the premises are also noted as indicators of operational quality and licence compliance.

How we help

We are acquisition finance and loans brokers, not lenders. We package your application, present it to the funders with genuine licensed retail sector appetite, and manage the process from first conversation through to completion.

We also arrange government-backed facilities for off-licence acquisitions — helping buyers access up to £2 million toward their purchase where the criteria are met.

Every off-licence acquisition is different. Tell us about the business. We will take it from there.