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

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The quantity of funding you receive is straight related to the value of the inventory in concern, typically 70 to 80% of the inventory’s worth. Inventory funding products are often conflated with “inventory loans,” which is a more basic term. Unlike stock financing, which is suitable for large B2B businesses, other types of inventory loans can be utilized by little B2C businesses. Rates and terms for inventory financing, of course, vary depending on the lending institution and the type of stock financing you’re applying for. If you have a newer business without a demonstrable sales history, or your present stock is losing worth and not selling, it’s unlikely that a stock financing company would be interested in lending to you.

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