Stock up before the busy season or a bulk discount
Inventory loans
Buy inventory ahead of demand, then repay as it sells. The term should match how fast your stock turns.
- Typical amount
- $15,000 to $200,000
- Typical term
- 6 to 24 months
Checking your rate is a soft credit pull and won't affect your credit score.
When this loan makes sense
Retailers, distributors and makers often have to buy months before they sell. An inventory loan pays for the stock now, so you can take the supplier's bulk price or fill the shelves before your busiest weeks.
Match the term to the turn. If your stock sells through in a season, a 6 or 12 month term means the loan is gone when the inventory is.
A good fit for
- Holiday or peak-season stock ordered months ahead
- A supplier discount that beats the cost of borrowing
- A large wholesale order with a signed purchase agreement
- Restocking proven best sellers that are always running low
Not the right tool for
- Stock you are not sure will sell
- Slow-moving inventory with a long, uncertain turn
- Replacing stock that sold at a loss
Not sure? See when a loan helps, and when it doesn't.
How it works
The details that matter for this job
01
Term matched to the turn
6 and 12 month terms are the most common here. The loan ends when the season does.
02
Check the discount math
Take a bulk discount only if it saves more than the total cost of borrowing. We show both in dollars.
03
Repay early as stock sells
No prepayment penalty, so a strong season can end the loan early and cut the interest.
The cost, in dollars
A representative example, worked all the way through
Representative example
Example only
- Loan amount
- $60,000
- Term
- 12 months
- APR
- 16.9%
- Monthly payment
- $5,469
- Total interest
- $5,633
- Origination fee (3%)
- $1,800
- You receive
- $58,200
- Total cost of borrowing
- $7,433
- Total repaid
- $65,633
Illustration only, not an offer. Uses the midpoint of the Strong profile's APR range at 12 months. Your APR, payment and total cost depend on your profile, amount and term.
Example APR ranges at 12 months
The same published bands price every loan. Here is where each profile lands at this term.
-
Prime
740+ credit
9.9%–13.9% APR
-
Strong
690–739 credit
13.9%–19.9% APR
-
Established
650–689 credit
19.9%–27.9% APR
-
Building
620–649 credit
27.9%–35.9% APR
Fees on this loan
- Origination: 3% one-time, deducted from the funds you receive
- Late payment: $25 after a 10-day grace period
- Returned payment: $15 if an ACH bounces
- No application, maintenance or prepayment fees
A borrower review
Sample review
“When a slow February put my payment at risk, I called expecting a script. I got a human who moved my due date twelve days, once, no fee. That's the whole reason they get my renewal business.”
Priya Raman
Juniper & Thread Boutique · Boulder, CO
$60,000 · 24 months · inventory
A sample review written for this design demo, not from a real borrower.
Read more borrower reviewsQuestions about inventory loans
Do you hold the inventory as collateral?
No. We never take specific collateral. Loans over $150,000 carry a standard blanket UCC-1 filing that is released when you pay off.
Is a supplier discount worth borrowing for?
Do the math in dollars. If a 10% discount on a $60,000 order saves $6,000 and the loan costs less than that in total, the loan pays for itself. If not, skip it. The representative example on this page shows the kind of total cost to compare.
What if the season is slower than planned?
Call us before the payment date. We can often move a due date or set a short hardship plan. Silence is the only thing we cannot work with.
More answers on the full FAQ, including missed payments and personal guarantees.
See your own numbers
The application opens with this loan's example already filled in. Change anything and the total cost updates as you go.