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Inventory Funding Guide

Inventory financing for New York small businesses

You pay for stock today and get paid when it sells, sometimes weeks or months later. That delay is the whole inventory problem in one sentence.

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Cash turns into shelves

Every dollar of inventory is a dollar that is not in the bank. A business with slow-moving stock can look profitable on paper and still be unable to make payroll, because its cash is sitting in boxes. Understanding how long your inventory takes to turn back into cash is the first step in deciding whether, and how much, to finance.

A simple turnover check

  1. List your top categories. The few that account for most of your sales.
  2. Estimate days on shelf. From purchase date to sale date for typical items.
  3. Add your supplier terms. If a supplier gives net-30 and your stock sells in 45 days, you carry 15 days of cost yourself.
  4. Flag the slow movers. Items sitting past twice the average turn are tying up cash.

The gap between when you pay and when you collect is your inventory float.

Different businesses, different stock problems

BusinessTypical stock pressure
Boutique or gift shopBuying a season ahead, with sizes and styles that may not sell
Restaurant or catererPerishables with short shelf life, bought in volume for events
DistributorLarge minimum orders from suppliers, slower payments from accounts
Contractor or supply houseMaterials bought for projects whose draws arrive later

Illustration: a bulk-buy decision

A distributor is offered a supplier discount for buying $60,000 of stock instead of $30,000. The discount looks attractive, but the extra $30,000 will sit for about three months. If the business is short on cash, that discount could be undone by a late payroll. The right question is not just whether the price is lower, but whether the cash would be more useful elsewhere for those three months. This example is illustrative and does not describe our terms.

When funding the stock makes sense

You have orders or a reliable sales pattern

Stock for confirmed orders or items with a steady record is far safer than speculation.

The supplier terms are tight

If a supplier requires payment upfront and your customers pay later, working capital bridges the difference.

You are preparing for a seasonal peak

A season-ahead purchase is exactly when cash is lowest and need is highest.

We fund $25,000 to $5,000,000, in as little as 24 hours, consider FICO 500 and above and ask for about three months of business bank statements. No tax returns are required, the application takes about five minutes and uses a soft credit pull. Sole proprietors can apply.

Common Questions

Can working capital be used to buy inventory?

Yes. Many owners use it for stock purchases ahead of a busy period or to take advantage of supplier terms.

How do I know if I am overstocked?

Look for items that take much longer than your average turn to sell. Those tie up cash and may need markdowns.

What does a funder look at?

About three months of business bank statements, showing deposits and spending patterns.

Do I need a physical store?

No. We read bank statements, not storefronts. Online and wholesale sellers can apply.

Can a sole proprietor apply?

Yes. Sole proprietors can apply.

%s

Three months of business bank statements and a 5-minute application. FICO 500+ considered. $25,000 to $5,000,000, funded in as little as 24 hours.

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