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Inventory Financing

Turn available inventory into working capital with a process that keeps your business moving.

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Key Highlights
A ready source of capital
Funding Amount
$100K to $10M
Asset-Backed
Based on inventory value
Time to Fund
2 weeks to 3 months
What is it?
How stocked items become working capital

Inventory financing turns your stocked goods into working capital, using existing inventory as collateral. It gives you access to flexible funding you can use across the business.

Instead of letting products sit on shelves while your cash is tied up, you unlock its value and keep revenue flowing.

Not looking to leverage your inventory? 
National Business Capital also offers funding solutions based on your cash flow—not your assets.

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how does it work?
Turn your inventory
into opportunity
  1. Apply online – Submit a quick digital application, and we provide your funding options.
  2. Review & approve terms – Compare competitive offers with expert support from our trusted business advisors.
  3. Access your funds – Use your fresh capital to fuel growth without tying up cash.
  4. Sell and repay – Repay as you move product, keeping cash flow healthy and operations smooth.

Here’s a real world example:

  • You need to prepare for peak season but lack cash on hand.
  • You receive financing based on the value of your inventory, which is usually 50% to 85% of its current value.
  • You use the funds to cover payroll, marketing, or other critical business needs.
    As products sell, you repay the financing over time, ensuring steady cash flow.

Capital is provided in two main formats: An inventory loan, which functions as a term loan, and an inventory line of credit, which mirrors a business line of credit.

What’s the difference?
Types of inventory financing

We can help you find the best structure for your business goals.

type
type inventory loan inventory line
of credit
Best for One-time bulk needs Ongoing restocking needs
Best for
type: Best for
inventory loan: One-time bulk needs
inventory line
of credit: Ongoing restocking needs
description A lump sun based on inventory value,
repaid over fixed terms Draw fund as needed, only pay interest
on what you use
description
type: description
inventory loan: A lump sun based on inventory value,
repaid over fixed terms
inventory line
of credit: Draw fund as needed, only pay interest
on what you use
considerations
Pros & cons

Inventory financing benefits

  • Free up cash flow – Fund your business without liquidating or waiting for sales.
  • Stay stocked – Meet demand during peak seasons without falling behind.
  • Leverage what you own – Approvals are based on inventory value, not just credit scores.
  • Protect other assets – No need to tie up equipment or real estate.

Things to consider

  • Loan-to-value limits – We finance 50%–85% of inventory value.
  • Carrying costs – Long turnover times may increase borrowing costs.
  • Asset risk – If repayment isn’t met, your collateral can be seized to cover the outstanding balance.

Our advisors help you structure a solution that works with your turnover rate and repayment ability, so your inventory stays a growth asset, not a liability.

why get it?
Put your inventory to work

We help you do more than just leverage your inventory—we help you do it strategically. Start today and turn inventory into an engine for growth.

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Unlock value

Turn current inventory into usable cash.

Preserve cash flow

Cover gaps between supplier costs and customer payments.

Keep equity

Access capital without sacrificing ownership.

Increased flexibility

Shorter terms help you stay nimble as you grow.

Mayra Saysedo
Owner, M&D Distribution

Funds as you need them, when you need them

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your eligibility
Have these two?
You’re set

In order to be eligible, you must have:

  • 1+ year in business
  • $500,000+ in annual revenue
  • $1M+ in current inventory value
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Not a match? Check out your other options

What do I need to PROVIDE?
Required documents

Have this information on hand and you’re all set

  • Business formation docs
  • Personal financial statements
  • Business financial statements
  • Business plan
  • Aging A/R and A/P reports
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FAQs

Yes. You can use physical inventory—finished goods, raw materials, or WIP—as collateral. Most lenders exclude perishables or obsolete stock. If you’re looking to fund orders based on future revenue rather than existing inventory, purchase order financing may be a better fit.

The cost varies depending on the lender, your inventory’s value, and your business profile. Interest rates typically range from 7% to 20% for inventory lines of credit. You may also see fees such as origination charges or collateral evaluations. Always review your lender’s terms to understand the full cost of capital.

Yes. You can use physical inventory—finished goods, raw materials, or WIP—as collateral. Most lenders exclude perishables or obsolete stock. If you’re looking to fund orders based on future revenue rather than existing inventory, purchase order financing may be a better fit.

It depends on your sales cycle and inventory turnover. If you sell high-demand products and need upfront capital to maintain inventory levels, this financing can help you scale without straining your cash flow. However, if you carry slow-moving inventory, or have limited ability to repay quickly, it may be worth exploring alternative inventory funding solutions.

Inventory financing uses your existing stock as collateral to secure funding. Invoice financing, also known as accounts receivable financing, lets you access capital based on unpaid customer invoices. In invoice factoring, the lender may buy your receivables upfront and collect directly from your customer. Inventory financing, by contrast, helps you fund stock purchases before the sale.

Let’s talk funding
Get the capital you need to grow your business

Let’s review your assets and find out if you qualify—no pressure, no cost.

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