Stock What Sells, When It Sells

Inventory financing gives product-based businesses the capital to purchase stock before the sales revenue comes in. For retailers, wholesalers, e-commerce sellers, and food service operators, inventory is both the largest expense and the primary revenue driver -- but paying suppliers often happens weeks or months before customers pay you. This funding type is specifically structured around the inventory purchase cycle: you borrow to buy stock, sell the inventory, and repay from the proceeds. The inventory itself typically serves as collateral, which can improve your approval odds and lower your effective borrowing cost. Seasonal businesses benefit enormously from inventory financing. A convenience store stocking up before summer, a boutique ordering holiday merchandise in September, or an e-commerce brand preparing for a product launch all need to commit cash well in advance of the sales peak. Without dedicated inventory funding, businesses either miss the window or deplete their operating reserves and risk falling behind on other obligations. Funding amounts for inventory typically range from $10,000 to $750,000, and terms are usually short -- 3 to 18 months -- because the inventory converts to revenue relatively quickly. Many lenders offer revolving inventory lines that let you draw and repay repeatedly as your purchasing cycles demand. This is particularly valuable for businesses with multiple product categories or staggered seasonal peaks throughout the year.