Best Inventory Financing Loans in November 2025
Inventory financing allows businesses to purchase inventory without providing cash upfront.
| Lender | Starting rate | Amount | Term | Time in business | |
|---|---|---|---|---|---|
|
7.80% |
$1k – $250k |
Up to 12 months | 12 months | |
|
32.72% (APR) |
$5k – $250k |
Up to 24 months | 12 months | |
|
4.66% | Up to $250k | 3 – 12 months | 3 months | |
|
3.00% |
$2k – $250k |
6 – 24 months | 12 months | |
|
11.00% |
$25k – $600k |
6 – 24 months | 6 months | |
|
13.00% |
$5k – $1.5M |
Up to 18 months | 6 months | |
|
22.45% |
$25k – $500k |
6 – 60 months | 24 months |
Inventory financing lenders at a glance
Best for: Financing regularly – Bluevine
- Fast application process
- No monthly or maintenance fees
- Only pay interest on what you borrow
- Same-day funding may incur a fee
- Weekly payments required, unless you meet stricter eligibility criteria
- Not available in Nevada, North Dakota or South Dakota
If you’re looking for inventory financing to cover recurring expenses, Bluevine’s business line of credit could be a good fit. With this line of credit, you can borrow funds as needed up to $250,000, only paying interest on what you withdraw. As you make payments, your available credit will replenish, allowing you to borrow again in the future.
With low starting rates and no monthly or maintenance fees, Bluevine’s line of credit is relatively affordable. However, most businesses will be required to make weekly payments on borrowed amounts, as stricter eligibility criteria applies for monthly payment plans.
Read our full Bluevine review.
To qualify for a line of credit with a weekly plan, you’ll need to meet Bluevine’s criteria of:
- Minimum credit score: 625
- Minimum time in business: 12 months
- Minimum annual revenue: $120,000
To qualify for a monthly payment plan, you’ll need to be in business for a minimum of three years with a personal credit score of 700+ and at least $960,000 in annual revenue.
Best for: Fast funding – OnDeck
- Potential for same-day funding
- You can apply for more funding before the loan is completely paid off
- Can help build business credit
- Daily or weekly loan payments required
- Relatively high interest rates
- Loans not available in North Dakota
With OnDeck, you may be able to receive the funds you need to stock up on inventory in as little as a few hours, making this an ideal choice for businesses with urgent financing needs. Same-day funding is available for loans up to $100,000, while larger loans (up to $250,000) will be deposited within two to three business days.
However, it’s worth noting that OnDeck’s interest rates tend to run high, and daily or weekly loan payments will be required, so with relatively short loan terms you’ll need to make sure your business budget can handle the repayment schedule.
Read our full OnDeck review.
In order to qualify, you’ll need to meet OnDeck’s criteria of:
- Minimum credit score: 625
- Minimum time in business: 12 months
- Minimum annual revenue: $100,000
Best for: Startup businesses – Fundbox
- Low annual revenue and time in business requirements
- Available to businesses in all U.S. states and many territories
- No prepayment penalties
- Relatively short repayment terms
- Personal guarantee may be required
- Lower borrowing amounts than other lenders on this list
Newly established businesses can consider a line of credit from Fundbox to cover inventory and other essential startup expenses. While credit limits only go up to $250,000, Fundbox’s eligibility requirements make it possible for businesses to qualify after only three months in operation.
It’s worth noting that Fundbox’s repayment terms are significantly shorter than some of our other picks, potentially putting a strain on your startup budget. But if your budget can handle the weekly payments, receiving your funds as quickly as the next business day might be ideal for your financial needs.
Read our full Fundbox review.
In order to qualify, you’ll need to meet Fundbox’s criteria of:
- Minimum credit score: 600
- Minimum time in business: 3 months
- Minimum annual revenue: $30,000
Best for: Borrowers with good credit – American Express
- Lower starting rates than many competitors
- Funding available as quickly as 1 to 3 business days, or instantly if you have a linked American Express checking account
- No prepayment, application or origination fees
- Confusing fee structure that varies based on term
- Lines of credit over $150,000 are only available for select borrowers
- Personal guarantee required
With the lowest starting rates on this list, the American Express is an ideal option for borrowers with strong credit profiles, which may allow them to unlock rates as low as 3.00% for 6 terms. Credit lines range from $2,000 to $250,000 and can be used to cover inventory purchases, payroll services, equipment repairs and seasonal dips in revenue.
Note that lines of credit over $150,000 are only available for borrowers with a pre-existing relationship with American Express. Business owners with an American Express small business credit card might be pre-approved for a business line of credit — you can log in to your account to see how much credit you’re pre-approved for.
Read our full American Express review.
In order to qualify, you’ll need to meet American Express’ criteria of:
- Minimum credit score: 660
- Minimum time in business: 12 months
- Minimum annual revenue: $36,000
Best for: Borrowers with bad credit – Credibly
- Low minimum credit score requirement
- Potential for same-day funding
- Early payoff discounts for qualified borrowers
- High annual revenue requirement
- Charges a one-time 2.50% origination fee
- Factor rates can make it difficult to compare loan costs with other loan offers
Business owners with less-than-perfect credit can consider a bad credit business loan from Credibly, as the lender accepts borrowers with scores as low as 500. As a working capital loan, the loan proceeds can cover various business expenses like inventory, payroll services, marketing campaigns, hiring staff and more.
Note that Credibly’s factor rate makes it hard to compare with competing offers, and the added origination fee could make this a more expensive way to borrow. Still, this could be a good option for businesses that fail to meet credit requirements with other lenders.
Read our full Credibly review.
In order to qualify, you’ll need to meet Credibly’s criteria of:
- Minimum credit score: 500
- Minimum time in business: 6 months
- Minimum annual revenue: $180,000
Best for: Covering short-term cash flow gaps – Fora Financial
- Largest loan sizes on this list
- Opportunity to borrow more after repaying 60% of original debt
- Early payoff discount available
- High annual revenue requirement
- Doesn’t help build business credit
- Factor rates make it difficult to compare loan costs with other offers
Fora Financial’s working capital loans offer the highest loan amounts on this list, providing up to $1,500,000 that can be put toward inventory, equipment, hiring staff and more. With relatively short repayment terms, this option may be best suited for business owners who expect their cash flow to increase in the coming months.
While Fora Financial offers a discount for paying off your debt early, on-time payments won’t help you build business credit. And although the lender’s credit score and time in business requirements are relatively low, its annual revenue requirements are quite high. Businesses will need to earn a minimum of $240,000 in annual revenue to qualify.
Read our full Fora Financial review.
In order to qualify, you’ll need to meet Fora Financial’s criteria of:
- Minimum credit score: 570
- Minimum time in business: 6 months
- Minimum annual revenue: $240,000
Best for: Financing large purchases – iBusiness Funding
- Lower rates than many alternative lenders
- No application fees or prepayment penalties
- Lengthy repayment terms could give borrowers up to 60 to repay their debt
- Loans could take up to 4+ days to fund
- Longest time in business requirement on this list
- Collateral, personal guarantee and/or blanket lien may be required
If you need a substantial amount of inventory and repaying a short-term business loan would put a strain on your business, you might be better off going with a lender that offers longer loan terms. With a term loan from iBusiness Funding, you can receive up to $500,000 to cover your inventory costs, with repayment terms giving you up to 60 to repay your debt.
The company also offers SBA loans with longer terms, though the funding timeline may be longer.
If you end up needing less time, there are no penalties for paying off your loan early. However, iBusiness Funding may require collateral, a personal guarantee and/or a blanket lien to secure your financing, which can put your personal assets at risk if you fail to make your loan payments.
Read our full iBusiness Funding review.
In order to qualify, you’ll need to meet iBusiness Funding’s criteria of:
- Minimum credit score: 640
- Minimum time in business: 24 months
- Minimum annual revenue: $50,000
What is inventory financing?
Inventory financing is a type of small business loan that helps small business owners buy essential inventory for their company.
Companies that require a lot of inventory, such as retail businesses and wholesalers, may be best suited for inventory financing.
How inventory financing works
Inventory financing works much like any other business loan: After applying with a lender and agreeing to terms, you’ll get a lump sum of money you can use to purchase inventory. You’ll then need to repay that money, with interest and any fees, according to the loan terms.
While some lenders have specific inventory loans that can only be used for that purpose, many lenders instead have broad business or working capital loans that can be used for a wide range of small business expenses, including financing your inventory.
Most lenders will want some form of security, or something they can legally take to recoup their costs if you don’t repay your loan. This may be the inventory itself, other collateral like a building, a personal guarantee that you’ll repay the loan even if your business fails or a blanket lien that allows them to take your business assets.
Many lenders will only allow you to borrow a percentage of the inventory’s value. This is because its value depreciates over time, and lenders want to make sure they can sell the stock and recoup their losses if you default on the loan.
You can typically finance up to 80% of your inventory’s value. The exact amount you’re approved to borrow depends on several factors, including your industry, the type and condition of the inventory and your creditworthiness as a borrower. Once a loan agreement is reached, you’ll begin making daily, weekly or monthly payments on your loan, depending on the lender and the type of loan.
Types of inventory financing loans
Financing for inventory loans typically comes as either term loans or lines of credit. Picking the best inventory financing loan depends on your business’s eligibility criteria and overall needs.
A business term loan is a lump sum of money provided upfront that you must repay in fixed daily, weekly or monthly installments. Repayment terms for short-term loans tend to range from three to 24 months, so if you’re using the funds to purchase inventory, you’ll want to consider how quickly you can resell or use that inventory to generate a profit.
Unlike a term loan, an inventory line of credit provides access to revolving funding you can withdraw when needed, rather than receiving a lump sum all at once. Once you repay the debt, you can withdraw funds up to your credit limit, only paying interest on the amounts you use. This type of flexible funding allows you to purchase business inventory as you need it.
How to get inventory financing
You can get inventory financing from traditional banks, credit unions and online lenders. Here are the basic steps to follow when you’re ready to apply for a business inventory loan.
1. Review eligibility requirements
While business loan requirements can vary by lender and loan type, inventory lenders typically look at the following criteria when reviewing your application:
-
Credit score
Some private business lenders accept personal credit scores as low as 500, though traditional lenders may prefer scores of 670 or higher. Boosting your credit score before applying can improve your chances of approval and help you secure better rates and terms. -
Annual revenue
Businesses typically need to generate between $30,000 and $240,000 in yearly sales to qualify for inventory financing. While you can get a startup business loan with no money, having some revenue will likely help you qualify for more competitive offers. -
Time in business
Since the inventory itself secures inventory financing loans, lenders often have slightly less strict business history requirements. Several lenders featured on this list extend credit to startups after only three or six months in operation.
2. Evaluate funding times and repayment terms
How quickly you need funds can determine the type of financing you pick. Many online lenders can deliver funds within one to three business days, while some traditional banks and credit union business loans can take weeks or even months to process. Check with potential lenders before applying to ensure their estimated timeline will work for you.
It’s also worth knowing the repayment terms, which differ depending on the product and lender. For inventory financing, you can typically expect repayment terms to range from three to 24 months or longer.
3. Compare lenders and rates
While online lenders usually provide faster turnaround times for inventory financing, you will likely pay a higher interest rate for the speed and convenience. At the same time, traditional banks often impose stricter eligibility criteria, such as requiring a two-year business history and a high annual revenue.
You can read business lender reviews before signing on the dotted line to ensure an inventory lender is the right fit for your business.
4. Gather required business documents
Each lender will require different paperwork during the loan application process. You can help speed things along by gathering the following common business loan documents in advance:
- Personal and business tax returns
- Bank statements
- Current inventory list
- Balance sheet
- Profit and loss statement
- Future sales prediction
5. Apply and review
Once you have narrowed down the most ideal inventory financing companies, you can submit an official application.
Thoroughly review the business loan agreement before accepting an offer to ensure you understand all of the loan’s terms and conditions.
Pros and cons of inventory financing
Pros
-
Quick funding times
You can usually get the money for inventory loans within a few business days. -
Inventory can be used as collateral
Business or personal assets are typically not required, making it less risky for the business owner if they should default. -
Lenient requirements
Newer businesses and those with limited credit can still qualify.
Cons
-
May come with fees
An appraisal fee for inventory may be required, along with possible origination fees and prepayment penalties. -
Might require a minimum loan amount
Depending on the lender, there might be a specific minimum loan amount to borrow for approval. -
High interest rates
Interest rates may be higher than other financing options.
How to compare inventory financing loans
Picking the best small business inventory loan can be challenging, especially if you’re eligible for multiple offers. Consider the following factors when comparing inventory finance solutions.
Interest rate
Business loan interest rates can vary based on your credit profile and other criteria. You can convert factor rates to annual percentage rates (APRs) to better compare offers. Keep in mind that inventory financing loans may come with higher rates than traditional business or SBA loans.
Repayment term
Inventory loans are often provided by alternative online lenders that might require daily or weekly payments instead of the more common monthly repayment schedule. Make sure to crunch the numbers in advance to ensure you can manage to repay the debt.
Time to fund
Emergency business loans can help cover your most urgent inventory needs within a day or two, but they often come with significantly higher fees. If you can wait, you might get better rates with a traditional bank or SBA loan.
Additional fees
Some inventory loan lenders charge origination fees, late charges and business loan prepayment penalties. Make sure to add these to the total loan cost to make sure it’s worth it.
Alternatives to inventory financing
Business inventory loans have many advantages, such as quick funding times and lenient eligibility requirements. However, if inventory financing isn’t a perfect fit for you, here are some other small business financing options to consider.
Invoice factoring
Best for: Businesses with an excessive amount of unpaid invoices.
You’ll have a lot more room for negotiation (and more options) when it comes to finding and buying a used car. This can translate to big savings.
Merchant cash advance
Best for: Businesses that need quick access to capital or have revenue that fluctuates throughout the year.
With a merchant cash advance (MCA), your business can receive cash as a lump sum by borrowing against future credit and debit card sales. Eligibility requirements can be more lenient, and no collateral is required, but the lender walks away with a percentage of the daily credit card sales the business makes.
Purchase order financing
Best for: Wholesalers and distributors.
Purchase order financing helps businesses pay for the raw or finished materials needed to fulfill purchase orders. A purchase order financing company pays the supplier’s costs directly, allowing you to complete the order. After orders are delivered, your customer or client pays the purchase order financing company directly and you will receive the payout amount minus a fee.
SBA 7(a) loans
Best for: Businesses looking for longer-term financing.
Backed by the U.S. Small Business Administration (SBA), the popular SBA 7(a) loan can cover various business expenses, including inventory, operating costs and equipment financing. Similar to inventory financing, the SBA 7(a) loans can come as a term loan or a line of credit with the SBA CAPLine program.
Vendor financing
Best for: Purchasing equipment quickly.
Vendor financing is when an equipment or supplies vendor works alongside a lender to provide funding to a small business. A small business could purchase materials or equipment from the vendor and then finance it with the partner lender. Vendor financing can either be as a loan or a lease.
However, since vendor financing prioritizes speed and convenience, be aware that it often comes with higher rates.
Our methodology: How we chose the best inventory financing companies
We reviewed the leading inventory financing companies to determine the overall best seven inventory finance loans. To make our list, lenders had to meet the following criteria:
- Rates and terms: We prioritized inventory lenders offering competitive fixed rates with fewer fees and flexible repayment terms.
- Quick funding times: We know that businesses often can’t afford to wait for lengthy funding processes, so we prioritized inventory lenders with funding times within one to three business days.
- Eligibility requirements: To include financing options for a variety of borrowers, we included lenders with a wide range of credit score, time in business and annual revenue requirements, focusing on the best lenders for specific situations.
- Repayment experience: We considered each lender’s overall reputation and business practices, favoring those who report to all major credit bureaus, offer reliable customer service and provide unique perks like prepayment discounts.