How Inventory Financing Works & When It’s Right (Or Wrong) For Your Small Business Funding Needs


The quantity of financing you get is directly related to the value of the inventory in question, usually 70 to 80% of the stock’s value. Stock funding items are in some cases conflated with “inventory loans,” which is a more general term. Unlike stock financing, which is proper for large B2B services, other types of inventory loans can be used by little B2C businesses. Rates and terms for inventory financing, of course, vary depending on the lending institution and the type of stock funding you’re using for. If you have a newer company without a demonstrable sales history, or your existing stock is losing worth and not selling, it’s unlikely that an inventory financing business would be interested in providing to you.

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