When should I apply relative to a supplier deadline?

As early as your order dates are known. Funding can arrive in as little as 24 hours, but a supplier deadline is easier to meet with time to spare.

Can a sole proprietor with an online store apply?

Sole proprietors can apply. About three months of business bank statements are typically reviewed.

How do I decide how much to request?

Work from sell-through, not from hope, and keep a reserve for payroll during the peak.

Do you need a supplier quote?

A quote is helpful for your own planning. The basic items we review are listed above.

Buy Inventory Ahead of a Peak: NY Funding

The timeline that creates the gap

When	What happens	Cash position
Ten weeks before peak	Orders placed with suppliers; deposits due	Cash out
Six weeks before	Goods arrive; remaining balance due; storage and insurance start	Cash out
Two weeks before	Staff hired, displays built, ads placed	More cash out
Peak	Sales come in, often in a few weeks	Cash in
After the peak	Unsold stock, refunds, returns	Cash tied up

The shape is the same for a gift shop in a holiday retail district, a garden center before spring, a distributor serving restaurants before a busy summer, or a beachside shop before Memorial Day.

Sizing the order without overbuying

Start with last year's sell-through, not last year's purchases. What actually left the shelf matters more than what you ordered.
Separate your proven sellers from your hopeful ones. Overbuy on the first, buy small on the second.
Count carrying costs. Storage, insurance, shrinkage and the interest on whatever funds the purchase.
Set a mark-down date in advance. A line you decide to discount on a certain day will not tie up cash through spring.

For illustration only

With invented round numbers, a shop expects to sell $120,000 of seasonal merchandise that costs $60,000 to buy. The first $60,000 must be paid weeks before the sales appear. If 85 percent sells at full price and the rest is marked down, the gross profit may still be sound, but the shop has been out $60,000 for much of the season. That shows why the timing of the purchase matters as much as its margin. These figures are not our terms or a typical outcome.

Mistakes to avoid

Buying the full forecast in one order, then discovering demand is lower.
Using all available cash for stock and leaving nothing for payroll in the peak weeks.
Ignoring supplier terms. Sometimes a smaller, earlier order from a supplier who gives longer terms is cheaper than a large one with cash up front.

Check your supplier terms first

Before you size a funding request, ask each supplier about early-order discounts, deposit amounts and payment dates. A small change in terms, such as paying half on order and half on delivery, can shrink the gap and reduce how much you need to request.

Our end of it

We fund $25,000 to $5,000,000, funded in as little as 24 hours. FICO 500+ is considered. We typically review about three months of business bank statements and do not require tax returns. The pull is soft, the application takes about five minutes, and sole proprietors can apply. Go to the application page when your order list is settled.

Funding Inventory Ahead of a Peak in New York