The stock you need to sell is the cash you don't have.
Inventory financing uses your stock — on hand or on order — as collateral so you can buy ahead of demand. It funds seasonal buildups, bulk purchase discounts, large purchase orders, and supplier deposits without tying up your operating cash.
Inventory Financing at a glance
- Loan amounts
- $50,000 – $10,000,000
- Term length
- Revolving or seasonal, 6 – 24 months
- Typical pricing
- Roughly 1% – 3% per month on drawn balances
- Funding speed
- 1 – 3 weeks to set up
- Credit guidance
- Inventory quality and turnover drive the decision
Key Benefits
- Borrow against existing or incoming inventory
- Purchase order financing for large contracts
- Take advantage of bulk and early-pay discounts
- Availability grows with your stock levels
Best Fit For
- Retailers preparing for peak season
- Wholesalers and distributors buying in volume
- E-commerce sellers scaling SKU depth
- Manufacturers funding raw materials
Why use a broker instead of going to your bank?
Advance rates depend on how liquid a lender considers your inventory. We match you with lenders who understand your category and give credit for stock others discount to zero.
Learn more about working with a brokerHow inventory financing compare
We broker every product on this list, so this comparison is about fit — not about steering you toward one option.
Compared with
Purchase order financing
PO financing pays your supplier directly against a confirmed customer order. Inventory financing lends against stock you already own or are stocking speculatively.
Compared with
Business line of credit
A general line is sized on overall financials. An inventory facility is sized on the stock itself, so it usually provides more availability for inventory-heavy businesses.
Inventory Financing: frequently asked questions
How much can I borrow against my inventory?
Typically 50% to 80% of the inventory's appraised net orderly liquidation value. Fast-moving, non-perishable, broadly marketable goods receive the highest advance rates.
What is the difference between inventory financing and purchase order financing?
PO financing pays your supplier against a confirmed customer purchase order. Inventory financing lends against stock you already hold or are buying to hold.
Do lenders require an inventory appraisal?
For larger facilities, yes — a third-party appraisal and periodic field exams are standard. Smaller facilities may rely on your inventory reports and turnover history.
Can seasonal businesses use inventory financing?
Yes, it is one of the best fits. Seasonal facilities let you build stock ahead of peak and pay down as the season sells through.
How fast can inventory financing be arranged?
Typically one to three weeks for the initial facility, depending on appraisal requirements. Draws afterward are usually same or next day.
More answers on the business financing FAQ and in the commercial lending glossary.
Other financing solutions
Working Capital Loans
Cover payroll, inventory, and day-to-day expenses with flexible short-term capital.
Commercial Real Estate Loans
Purchase, refinance, or build commercial properties with structures matched to your project.
Bridge Loans
Move quickly on opportunities while you arrange long-term financing.
Ready to explore inventory financing?
A 15-minute conversation is all it takes to know if this is the right fit. No obligation.