Ratings and reviews are from real consumers who have used the lending partner’s services.
Ratings and reviews are from real consumers who have used the lending partner’s services.
$5,000 to $250,000
31.30% Minimum APR offered to at least 5% of customers (not the lowest rate offered)
Up to 24 months
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.
In order to qualify, you’ll need to meet OnDeck’s criteria of:
Up to $250,000
7.80%
3, 6 or 12 months
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 credit line will replenish, allowing you to continually access funding for your business.
With low starting rates and no monthly or maintenance fees, Bluevine’s line of credit is relatively affordable. However, you’ll need a Bluevine Business Checking account to qualify for its three-month line of credit, which has lower annual revenue and time in business requirements.
To get a line of credit with a three-month term, you’ll need to meet the following criteria to qualify for financing:
To get a six- or 12-month term, you’ll need to be in business for a minimum of 12 months with at least $120,000 in annual revenue.
Ratings and reviews are from real consumers who have used the lending partner’s services.
Ratings and reviews are from real consumers who have used the lending partner’s services.
Up to $150,000
4.66% to 8.99%
4.66% for 12-week terms
8.99% for 24-week terms
12 or 24 weeks
Newly established businesses can consider a startup business line of credit from Fundbox to cover inventory and other essential startup expenses. While credit limits only go up to $150,000, 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 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.
In order to qualify, you’ll need to meet Fundbox’s criteria of:
$2,000 to $250,000
3.00% to 27.00%
3% to 9% for 6-month terms
6% to 18% for 12-month terms
9% to 27% for 18-month terms
12% to 18% for 24-month terms
6 to 24 months
With the lowest starting rates on this list, the American Express Business Line of Credit is an ideal option for borrowers with strong credit profiles, which may allow them to unlock rates as low as 3.00% for six-month loans. 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 — log into your account today to explore your options.
In order to qualify, you’ll need to meet American Express’ criteria of:
Ratings and reviews are from real consumers who have used the lending partner’s services.
Ratings and reviews are from real consumers who have used the lending partner’s services.
Up to $1,500,000
1.13
4 to 18 months
Fora Financial’s working capital loans offer loan amounts as high as $1,500,000, making this a viable option for established businesses looking for larger loans than what other lenders can provide. Working capital can be used for inventory, equipment, maintaining cash flow, hiring staff and more.
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.
In order to qualify, you’ll need to meet Fora Financial’s criteria of:
Ratings and reviews are from real consumers who have used the lending partner’s services.
Ratings and reviews are from real consumers who have used the lending partner’s services.
$25,000 to $600,000
1.11
6 to 24 months
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.
In order to qualify, you’ll need to meet Credibly’s criteria of:
$25,000 to $500,000
7.49%
6 to 84 months
If repaying a short-term business loan will put additional financial strain on your business, you might be better off going with a lender that offers longer terms. With a term loan from iBusiness Funding, you can receive up to 84 to cover your inventory costs, with repayment terms giving you up to 84 months to repay your debt.
If you need more money, iBusiness Funding also offers SBA 7(a) loans up to $5,000,000, though they can be slower to fund.
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 or a blanket lien to secure your financing, which can put your personal assets at risk if you fail to make your loan payments.
In order to qualify, you’ll need to meet iBusiness Funding’s criteria of:
Inventory financing is a type of small business loan that helps small business owners buy essential inventory for their company. Since the inventory acts as collateral to reduce lender risk, you typically don’t have to pledge personal or business assets.
Inventory financing can also refer to a type of secured business loan where you use your business inventory as collateral to fund short-term business expenses like payroll and cash-flow gaps. Companies that require a lot of inventory, such as retail businesses and wholesalers, may be best suited for 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.
While business loan requirements can vary by lender and loan type, inventory lenders typically look at the following criteria when reviewing your application:
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.
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.
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:
Once you have narrowed down the most ideal inventory financing companies, you can go ahead and 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.
