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Inventory Financing
Inventory stock secured loans and lines of credit for purchasing additional inventory.
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Loan Amount
Up to 100% of inventory value
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Time to Fund
1 - 2 Days
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Term Length
3 to 36 Months
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What is inventory financing?
Inventory financing enables businesses to purchase new inventory stock while using their current inventory as collateral, ensuring cash flow remains intact. This solution is perfect for companies that need to pay suppliers upfront while awaiting customer sales. Whether you choose a term loan or a line of credit, inventory financing supports your operational needs without sacrificing growth potential.
Why Do Businesses Use Inventory Financing?
Inventory financing helps small businesses maintain adequate stock levels without tying up cash flow. This type of loan or credit line allows companies to purchase inventory before it is sold, ensuring they can meet customer demand without financial strain. Ideal for seasonal businesses or those with fluctuating sales cycles, inventory financing ensures steady operations by covering upfront product costs.
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Minimum Requirements
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Credit Score
650
Monthly Revenue
$8K+
Time in Business
6+ Months
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Inventory financing is secured specifically by your unsold inventory, whereas a line of credit is a general-purpose revolving loan that may require additional collateral.
Retailers, wholesalers, and e-commerce businesses with large inventory turnover cycles benefit most, as it enables them to stock up for seasonal demand.
Lenders evaluate inventory value, turnover rates, and historical sales performance. Typically, you can borrow 50%-80% of the inventory’s value.
Lenders may adjust borrowing limits, increase interest rates, or require additional collateral. If the loan defaults, the lender can liquidate your inventory.
Startups may qualify, but they often face stricter requirements such as personal guarantees or higher interest rates due to the lack of sales history.
Still have Questions?
Find the Right Lender
Tired of endless searches and dead-end introductions to bankers and brokers?
Bread Route has the right lenders, investors, and funding solutions—so you can focus on growing your business.
