Business Loans
for Inventory

A quick funding process that offers inventory business loans to business owners.

Last Updated on March 25, 2025

Compare Business Loans for Inventory Options

Inventory management is the process of handling the flow of inventory in and out of your business to maximize sales and minimize exposure. A business maximizes sales both by having enough inventory on-hand to meet demand and also by having the right kind of inventory to sell. A small business minimizes exposure by not having so much capital invested in inventory that it cannot cover other expenses, or by buying the correct kind of inventory. If yours is a product-based business, you will quickly learn how important inventory management is to your success.

Inventory cycles rarely align with cash flow cycles. You must buy the produce to prepare the salad to sell, or the clothes to hang on the racks before the sale has been made. It is common to have to lay out a significant amount of capital to stock up for an upcoming busy or holiday season. And this is why small business owners go to Shield Funding for business loans for inventory management. The process is fast and easy and it can all be completed online.

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What Do I Need to Qualify?

Below is a list of the general requirements to get approved for business funding with our basic program.

How Do I Apply?

Applying has never been easier. You can either call our toll free number 24 hours 7 days a week at:

(888) 882-6117

Submit your online application by clicking apply below and entering a few basic details about your business.

The Best Inventory Business Loans in 2024

Unsecured Business Loans

Just because you are taking out a loan intended to purchase inventory does not mean you must pledge that inventory as collateral. Many lenders prefer to lend based on collateral because it lowers their risk to be able to claim a business’ assets or personal assets in case of default. This is the same reason that a secured loan could be riskier to you.

Pledging assets can also delay the time until funding while assets are appraised and verified, though a secured loan will typically have a lower interest rate. But the paperwork and time involved could simply be more hassle than its worth.

Lenders of unsecured business funding do require collateral. They grant loans based upon your businesses monthly revenues, but you do not have to pledge those revenues or a portion of them to secure the loan. As long as you meet the revenue and credit score requirements, unsecured business loans can be quickly approved and the amount you are borrowing deposited into your bank account shortly thereafter.

While you will pay more in interest to access the funds, you have less risk of losing an asset important in running your business and will be able to purchase the inventory you need.

Short Term Business Loans

This is a short term small business loan that you can use for any type of expense. You can use it to cover seasonal swings in business, pay a new employee, or open a completely new location. You can even receive funds the same day. Whatever you need for your business, these short term business loans will help you get it.

We offer up to $1,000,000 in funds for business owners. And with interest rates of 12–45%, you can get a better deal than you would with some traditional lenders. As long as you’ve been in business for two months, earn $8,000 or more per month, and have a credit score of 500 or more, you can qualify for one of these loans.

Our terms range from 12–36 months, so you can get the amount and terms that work for you. You can also receive funds within 24 hours directly to your account so you can take care of your business needs quickly.

Business Line of Credit

A business line of credit functions similarly to a credit card. The line is open and you can access the capital at any time. Once you have paid down some of the line of credit, you can draw again the next time you need to purchase more inventory. And, if you have no draws on the line, you do not owe a payment.

A business line of credit, just like a credit card, is an open and unsecured form of credit. It has no collateral and the lender will be last in line to get repaid should you default. For this reason, lines of credit can have extremely high interest rates. You may also pay an annual fee to keep it open or draw fees every time you access the capital.

These are two downsides to using a line of credit for inventory management. The other would be that, due to the risk associated with an unsecured form of lending, a line of credit will likely have a low lending limit. It might not be enough to pay for the inventory you need, or could end up limiting your business’ growth.

Merchant Cash Advance

We know that businesses have a tough time receiving working capital. If you try to get a loan from a traditional lender, you’ll get denied fast. We don’t think any factor should disqualify you from getting funding for your business. At Shield Funding we can approve and fund your loan within 24 hours.

So we offer short term merchant cash advances of up to $1,000,000 to business owners with credit scores above 500. You’ll pay 12–45% interest on terms up to 36 months. As long as your business has been open for a few months and you have $8,000 in monthly revenue, you can qualify and even receive funds the same day.

Apply for Inventory Business Loans!

Work with a direct lender and get a business loan as fast as the same day. Shield Funding offers competitive rates and terms on all it’s funding programs. Apply now with a trusted lender that has been helping business owners secure working capital for two decades.

Additional Inventory Business Funding Programs Available

SBA Business Loans

The SBA 7(a) Loan Program is the Small Business Administration’s primary lending program, offering financial assistance to small businesses for various purposes, including purchasing inventory. This program provides loan guarantees to lenders, enabling them to support small businesses with their financing needs. With a maximum loan amount of $5 million, 7(a) loans can be used for acquiring, refinancing, or improving real estate and buildings; short- and long-term working capital; refinancing current business debt; purchasing and installing machinery and equipment; purchasing furniture, fixtures, and supplies; and changes of ownership (complete or partial). To be eligible, businesses must operate for profit, be located in the U.S., meet SBA size standards, and demonstrate a need for the loan proceeds.

Bank Business Loans

Wells Fargo offers inventory financing, also known as floorplan financing, to help businesses maintain a steady flow of products from manufacturers to dealers. This financing solution enables dealers to order inventory directly from vendors, with Wells Fargo paying the vendor upon shipment and subsequently billing the dealer. This process allows dealers to stock optimal inventory levels with extended repayment terms, often subsidized by manufacturers, thereby improving cash flow and liquidity. Vendors benefit from immediate funding, reduced credit risk, and decreased collection expenses. Wells Fargo serves various industries, including marine, motorsports, outdoor products, agriculture, recreational vehicles, electronics, and appliances.

Fifth Third Bank offers inventory loans to help small businesses maintain adequate stock levels, especially during peak seasons. These short-term financing solutions provide funds to purchase inventory, with the merchandise itself often serving as collateral. As inventory is sold, the proceeds are used to repay the loan, ensuring businesses can meet customer demand without straining cash flow. Loan amounts typically range from $5,000 to $500,000, with repayment periods between three to 12 months. To qualify, businesses should have been operational for at least six months to a year and have a minimum annual revenue of $100,000. Fifth Third’s Fast Capital® program offers unsecured loans from $10,000 to $100,000, available in as little as one business day, requiring no collateral and minimal documentation.

City National Bank offers inventory loans to help businesses purchase necessary stock. These short-term loans or lines of credit allow companies to buy inventory, which can be unsecured or used as collateral. This financing ensures businesses can act quickly on opportunities, like stocking up on popular products, without missing sales or disappointing customers. Funds from an inventory loan can also cover expenses such as furnishings, equipment, and working capital for receivables and payables.

Ameris Bank offers Working Capital and Inventory Loans designed to provide businesses with the necessary funds to manage daily operations, invest in growth opportunities, and maintain optimal inventory levels. These loans feature a straightforward application process, local decision-making, and flexible collateral options, ensuring that businesses of all sizes receive personalized financing solutions. Repayment plans are adaptable, with options for annual, semi-annual, or monthly payments, allowing businesses to choose a schedule that aligns with their cash flow. Additionally, these financing options can be combined with SBA loans to further enhance flexibility and support.

Alliance Bank offers Inventory Loans designed to help businesses maintain optimal stock levels to meet customer demand. These loans come with competitive rates and customizable repayment terms, allowing businesses to preserve working capital while ensuring they have the right inventory on hand. Decisions are made locally in Northeast Texas, ensuring a quick and personalized process.

Pioneer Bank offers Business Equipment Loans to support businesses in acquiring essential equipment and inventory. These loans range from $50,000 to $250,000, featuring competitive fixed interest rates and terms up to 84 months. Notably, there are no pre-payment penalties, allowing businesses to repay the loan ahead of schedule without additional costs. This financing solution is ideal for businesses looking to invest in new machinery, technology, or inventory to enhance operations and drive growth. For more details or to apply, visit Pioneer’s official website.

American Express offers inventory loans through its Business Blueprint Funding, helping small businesses manage stock by providing flexible working capital. These loans are ideal for retailers and product-based businesses that need extra inventory for peak seasons or bulk purchases. Instead of struggling with cash flow issues, businesses can draw from a line of credit as needed and only pay fees on the amount used. This makes it easier to buy inventory upfront, take advantage of discounts, and meet customer demand without financial strain.

Credit Union Business Loans

MCT Credit Union offers Inventory Loans to help businesses maintain a steady supply of products while preserving cash flow. These loans provide flexible financing options with competitive interest rates, allowing businesses to purchase inventory without tying up working capital. Businesses can use their inventory as collateral, making it easier to secure funding without additional assets. With quick, local decision-making and personalized service, MCT CU ensures a smooth and efficient loan process. Whether you’re stocking up for a busy season or managing day-to-day inventory needs, their financing solutions can help keep your business running smoothly.

Learn More About Inventory Business Loans

What are Business Loans for Inventory Management?

Most inventory management loans are short-term in nature. You do not want to be making payments on a loan for product that has already sold or outlived its usefulness. The inventory serves as collateral for the loan, and can be repossessed should you default.

Excellent candidates for business loans meant for inventory management are wholesale, retail, manufacturing, food and distribution businesses.

Common Uses for Inventory Business Loans

Business loans for inventory management provide fast, flexible funding to help you keep your shelves stocked and your operations running smoothly. Whether you need to prepare for a seasonal rush, take advantage of bulk discounts, or restock a fast-selling product, these loans allow you to purchase inventory when you need it most. By having the right inventory on hand, you can meet customer demand, avoid lost sales, and keep your supply chain flowing efficiently.

Inventory loans can also support growth by helping you introduce new products or expand into new markets without straining your cash flow. Quick access to capital gives you the ability to act fast and stay competitive, making these loans a smart option for businesses looking to scale or streamline their inventory process.

What to Consider Before Getting a Inventory Business Loans

What Can You Afford?

Before taking out a business loan for inventory management, it’s important to carefully review your financial situation and make sure you can handle the repayment terms. Look at your monthly revenue, inventory turnover rate, and operating costs to figure out how much you can realistically afford in loan payments. Inventory loans can offer quick access to capital, but they may come with shorter terms or higher costs, so it’s crucial to understand the full repayment amount, including any fees. While this type of funding can help you meet customer demand and support growth, borrowing more than your business can handle may hurt your cash flow. Make sure the loan fits within your budget and aligns with your sales cycles so it supports your business rather than creating new challenges.

Why Do You Need The Funds?

Before applying for a business loan for inventory management, it’s important to develop a clear plan for how you’ll use the funding. Whether you’re stocking up for a busy season, replenishing best-selling products, or expanding your product line, knowing your inventory needs will help you borrow the right amount. These loans are designed to help you act quickly, especially when there’s a limited-time opportunity to buy in bulk or secure a discount from a supplier. Having a specific goal in mind ensures the loan is used effectively, aligns with your sales strategy, and doesn’t result in unnecessary debt. A focused approach allows the loan to support your growth while keeping your finances in check.

Are Inventory Business Loans Right For You?

Our business loans for inventory management are a great solution if you need quick access to capital to purchase stock and keep up with demand. This type of financing is ideal for businesses preparing for a seasonal rush, restocking popular items, or taking advantage of supplier discounts. Typically, a fair credit score is required to qualify, so if your score is below 650, our business cash advance options may be a better fit. Inventory loans are helpful when traditional financing isn’t available, but it’s important to consider a few key details before applying. Because the repayment term is usually shorter, payments can be higher than with long-term loans. It’s essential to understand the total cost of borrowing and make sure the loan supports your inventory goals without straining your finances. Evaluating your repayment ability and sales projections will help you determine if this type of funding is the right fit for your business.

Exploring the Inventory Business Loan Application Process

Common Factors That Impact Your Inventory Business Loan Application

Several factors influence whether you qualify for a business loan for inventory management. While your credit score is reviewed, lenders tend to place greater emphasis on your business’s overall performance. They’ll look at how long you’ve been operating, your monthly cash flow, bank activity, and the consistency of your revenue. Other elements, like your industry type and how seasonal trends affect your sales, can also play a role in the approval process. Because inventory loans often need to be funded quickly to meet supplier deadlines or restock needs, lenders focus on getting a clear picture of your business’s short-term financial health to make timely approval decisions.

How Much Do I Qualify For?

The amount you can qualify for with a business loan for inventory management is generally based on your monthly revenue and the average deposits into your business bank account. Many lenders approve up to 70% or more of your typical monthly deposits. For example, if your business averages $50,000 in deposits each month, you may be eligible for a loan of around $35,000 or more. To determine the exact amount, lenders evaluate your cash flow, deposit consistency, and the overall financial health of your business. A strong and steady financial history improves your chances of securing a larger loan to keep your inventory fully stocked and ready to meet customer demand.

How Does Paying Back The Inventory Business Loan Work?

With a business loan for inventory management, repayment typically starts shortly after the funds are disbursed and is made through daily or weekly automatic withdrawals from your business bank account. If you choose a daily repayment plan, payments are usually taken out Monday through Friday, excluding weekends and holidays. Weekly plans involve one fixed payment each week. This repayment structure breaks the loan into smaller, more manageable amounts, helping you maintain steady cash flow while staying current with your loan obligations. It’s a convenient system designed to keep the repayment process simple and predictable, so you can focus on running your business and managing your inventory effectively.

What Will a Inventory Business Loan Cost You?

The cost of a business loan for inventory management is typically based on a fixed factor rate and the length of the loan term. For example, if you borrow $20,000 for 12 months at a factor rate of 1.15, your total repayment amount would be $23,000, which includes $3,000 in financing costs. Unlike traditional interest, the factor rate is applied upfront, so you’ll know exactly what you owe from the beginning. Depending on your agreement, repayments are made on a daily or weekly basis, spreading the total amount into smaller, predictable payments. This structure allows for quick access to funding while keeping repayment simple and manageable, helping you maintain a steady inventory flow without disrupting your cash flow.

How to Compare Inventory Business Loan Lender Options

Interest Rates

This is likely one of the most important benchmarks you will use to compare lending options. If one lender offers a better interest rate than the other and all other things remain the same you can have a good idea of the rate comparison. You must keep in mind that different products such as credit cards or car loans work using traditional financing interest rates and APR, but many alternative funding programs quote in a factor rate or annualized interest rates so try to compare options based on the types of loans they are most similar to. And ultimately it will come down to what you have to pay back when all is said and done.

Payback Amount

When comparing lending options, whether quoted in factor rates, interest rates, or any other framework, what is most important is what you will pay back when all is said and done. For this reason you should always try to look at what you will pay over the entire life of the loan.

Frequently Asked Questions

How does an inventory loan differ from a traditional business loan?

An inventory loan is specifically designed to help businesses purchase stock, using the inventory itself as collateral. Traditional business loans, on the other hand, can be used for a variety of purposes, such as equipment purchases, payroll, or general working capital, and may require other forms of collateral.

What types of businesses benefit the most from inventory loans?

Retailers, wholesalers, and product-based businesses that need to maintain stock levels or prepare for seasonal demand benefit the most. Industries such as e-commerce, manufacturing, and automotive sales also use inventory loans to manage cash flow efficiently.

Are there different types of inventory financing?

Yes, inventory loans can be structured as term loans, revolving lines of credit, or even asset-based financing where lenders provide funds based on the value of the inventory. Some businesses may also qualify for floor plan financing, which is common in industries like automotive sales.

Can an inventory loan be used for seasonal stock purchases?

Yes, many businesses use inventory loans to stock up for peak seasons. This helps ensure they have enough products on hand to meet increased demand without depleting their working capital.

What happens if my business can't sell the inventory purchased with the loan?

If a business cannot sell the inventory, lenders may require liquidation of the stock to recover the loan amount. Some lenders also require additional collateral or a personal guarantee, meaning the business owner could be responsible for repayment if sales don’t cover the loan balance.

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based on 415+ reviews on

Sep 30, 2024

Great Experience!

I had an amazing experience with this lending company! Dania and Sal were incredibly helpful and made the entire process a breeze. I was impressed by how fast everything went, same day approval and funding! I couldn’t have asked for a better experience.

Sep 4, 2024

Upfront and Fast

Dan from Shield Funding was a lifesaver! Had an unexpected expense pop up and I reached out to Shields Funding. I was able to get the funding I needed as well as a reasonable pay back amount. I would definitely recommend Dan to help any business owner out. I was able to get funding same day. Thank you Dan for making the process as smooth as possible.

May 10, 2024

Nick Robinson is incredible

Nick Robinson is incredible! He was able to get us approved and funded in a matter of hours! He stayed true to his word and was able to provide us with many options! Even answered calls on off hours to get us started. We are insanely grateful for the professionalism and promptness through our transitional time and expansion. Ask for NICK!

Nov 19, 2024

Working with Ryan and Joseph …

Working with Ryan and Joseph was an absolutely refreshing experience. They quickly responded to every phone call and every inquiry of mine in record time and with straight, honest answers! They are vey quick, efficient, easy going and cool to work with. They funded my business within less than 24 hours of my initial contact. Highly recommend!

Oct 22, 2024

I reached out to Shield Funding for…Working Business Capital

I reached out to Shield Funding for working capital for my business. I was lucky enough to get paired with Dan Zuberman and couldn’t have been happier. With what was a hassle in the past, Dan made it a breeze. It took him less than 24 hours from start to finish to get my business some funding with terms that hands down beat the competition. If you’re looking for an easy and seamless process for business funding, reach out to Dan Zuberman!!!

Oct 16, 2024

Great fast and very easy from the…

They immediately reached out, went over exactly what I needed to submit, and within hours I was fully funded. At a very competitive rate. Abe Gold was my rep and he was very easy to work with. If you have your bank documents in order and need funding fast, do not hesitate to reach out to Shield Funding

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