Inventory Financing
Unlock Working Capital from Your Stock
Loans Secured by Business Stock
Inventory Financing
Inventory Financing allows businesses to leverage their existing inventory as collateral to access working capital. Instead of selling stock to raise cash, companies can secure a loan against it—helping them purchase more inventory, cover operating expenses, or bridge short-term cash flow gaps. This financing option is especially valuable for retail, wholesale, and distribution businesses with significant stock on hand.
How It Works
- Apply with your business financials and inventory details
- Lender evaluates inventory value as collateral
- Loan terms structured based on inventory and credit profile
- Funds disbursed quickly, allowing immediate use for working capital
- Repayment is made over 6 to 48 months, with inventory remaining pledged until the loan is paid in full
Collateral Options
- Inventory: Your business’s existing stock is the primary collateral
- Asset-Based Lending: Some lenders (like CIT Group) may also allow accounts receivable or fixed assets to be pledged alongside inventory
Short Terms
1 – 48 months
Competitive Interest Rates
5% – 20%
Varying Funding Amounts
Up to $400,000
How Inventory Financing works!
Loan Amount: Up to $400,000
Terms: 6 – 48 months
Rates: 5% – 20%
Collateral: Yes, existing inventory serves as collateral
Qualifications: To qualify, most lenders will require the following:
- Credit score: Minimum of 550 – 625
- Inventory valuation
- No recent bankruptcy
- Business in good standing
Faster Funding’s
Inventory Financing: Unlock Liquidity from Your Stock
With Inventory Financing, you can transform unsold stock into working capital without disrupting your operations. Secure flexible funding today to manage expenses, purchase more inventory, or scale your business with confidence.
The Benefits of Inventory Financing
Inventory financing provides businesses with the flexibility to turn stocked goods into usable capital without selling assets or disrupting operations. It helps maintain healthy cash flow, supports bulk purchasing to reduce costs, and ensures you can meet customer demand even during seasonal or high-growth periods. By leveraging your existing inventory as collateral, you can access quick funding, keep shelves stocked, and strengthen your business’s ability to scale with confidence.
- Unlock liquidity without selling your stock
- Maintain smooth operations during seasonal or cash flow fluctuations
- Ideal for retailers, wholesalers, and distributors
- Flexible repayment terms aligned with business needs
- Expand inventory purchasing power without draining reserves
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To qualify for Inventory Financing, applicants generally need to meet the following:
- Credit Approval: All applications subject to creditworthiness review
- No Recent Bankruptcy: Applicants should have no bankruptcies within the past year
- Good Standing: Business must be in compliance with state filing requirements (e.g., active with Secretary of State)
- Proof of Inventory: Detailed reports or audits may be required to verify inventory value
- Operational History: Some lenders may require at least 1 year in business for approval
How We Work. Our Mission & Values
At Faster Funding, we’re committed to helping businesses of all sizes succeed. Our Inventory Financing programs are just one of the many ways we’re working to make that happen.
To learn more about our Inventory Loans or to apply for other types of funding, please contact us. Our team of experts is standing by to help you find the perfect lending solution for your business.
Faster Funding is Here to Help
Frequently Asked Questions
We understand you are probably wondering how this all works. Here are some key topics to help you make informed decisions to unlock your business’s growth opportunities.
Can I still sell my inventory while it’s used as collateral
Yes, in most cases, as long as you maintain sufficient collateral levels per your agreement.
What types of businesses use inventory financing?
What happens if my inventory loses value?
Lenders may require you to provide additional collateral or repay part of the loan to maintain coverage.
Is this similar to a line of credit?
Yes, but specifically tied to the value of your inventory. Some lenders offer revolving inventory credit lines as well.
Get Started
Contact us to learn more about our inventory financing programs. Our team of experts is standing by to help you find the perfect financial solution for your business.
