Capital Finance Group
Stock Finance
Stock finance helps businesses fund the purchase of inventory, so you can buy the goods you need without draining your cash reserves. It is particularly useful when you need to stock up ahead of busy periods or take advantage of supplier discounts for larger orders.
Speak to a Business Finance SpecialistStock Finance
Stock finance is often overlooked, yet it can unlock growth for product-led businesses. We will look at how your stock moves, how quickly it sells and what security is available, and use that to identify facilities from lenders with an appetite for your sector and type of goods.
Who it suits
- Retailers, wholesalers and distributors holding significant inventory
- Businesses preparing for seasonal peaks
- Companies wanting to buy in bulk to secure better supplier pricing
- Growing firms whose stock requirements are outpacing available cash
How it works
- Funding may be provided against the value of new stock purchases or existing inventory
- In some structures the lender pays your supplier directly, and you repay once the goods are sold
- Facilities can be revolving, allowing you to draw down repeatedly as stock turns over
- It can sit alongside other facilities, such as invoice finance, to support the full trading cycle
Things to consider
- Lenders generally favour stock that is easy to value and resell; perishable or highly specialised goods can be harder to fund
- The stock itself is often used as security, and lenders may monitor stock levels and reporting
- Personal guarantees may be required
- Fees and interest should be compared with the margin you expect to make on the goods
Want to buy the stock your business needs without tying up cash? Speak to an expert to explore your options.
Finance is subject to status and lender criteria.
Interested in Stock Finance?
Want to buy the stock your business needs without tying up cash? Speak to an expert to explore your options.
Speak to a Business Finance Specialist