Inventory Financing

Inventory financing uses your existing or purchased inventory as collateral. The lender advances a percentage of the inventory’s value; if the business defaults, the lender can claim the inventory. It is commonly structured as a short-term loan or a revolving line tied to inventory levels, so available capital scales with stock.

1. Submit an application through ASBCLF with details about your inventory and sales cycle.
2. ASBCLF matches your application with lenders offering inventory financing.
3. The lender reviews your inventory reports, turnover, and financials.
4. If approved, you receive funding secured by inventory and repay as goods sell.

• Seasonal stock buildup
• Restocking fast-moving goods
• Expanding product lines
• Fulfilling large orders
• Freeing up working capital tied in stock

• Sellable, finished inventory
• Healthy inventory turnover
• Established time in business
• Strong financials
• Reliable supplier relationships

Eligibility varies by lender and program. ASBCLF submits your application to its lender network; individual lenders set their own criteria and make their own decisions.

• Inventory reports
• Business financial statements
• Supplier invoices
• Business bank statements
• Storage or warehousing information

Repayment typically comes from the sale of the financed inventory, on a schedule aligned with turnover. Revolving structures let you draw and repay as inventory cycles. Advance rates depend on the type and liquidity of the inventory.

Inventory financing ties funding directly to your stock. See how it compares to related financing.