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

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The quantity of financing you receive is straight related to the value of the inventory in question, normally 70 to 80% of the inventory’s value. Inventory funding items are often conflated with “stock loans,” which is a more general term. Unlike stock funding, which is suitable for big B2B organisations, other types of stock loans can be used by little B2C services. Rates and terms for stock financing, of course, differ depending on the lending institution and the type of stock financing you’re using for. If you have a more recent business without a demonstrable sales history, or your present stock is losing worth and not selling, it’s unlikely that an inventory financing company would be interested in providing to you.

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