Inventory Financing: How to Fund Inventory Without Tying Up Cash (2026)

What is inventory financing?

Inventory financing is business funding used to purchase stock or raw materials, often using the inventory itself or your future sales as the basis for approval. It’s typically structured as a line of credit, working capital, or revenue-based funding so you can buy inventory now and repay as it sells. Amounts through Fundmerica’s funder network run from $10K to $500K.

How do I get money to buy inventory fast?

A business line of credit or revenue-based funding can fund inventory purchases as fast as the same day to 48 hours. A line of credit is ideal because you draw exactly what a purchase order costs and reuse the credit as inventory sells. Apply through a marketplace to compare offers and be matched on speed.

Can I get inventory financing with bad credit?

Yes. Revenue-based and deposit-driven funders approve businesses down to a 500 FICO when monthly sales are strong, because they weight cash flow over credit score. If your inventory turns quickly, that sales velocity is exactly what these funders want to see — a marketplace routes you to them.

Is inventory financing better than a line of credit?

They overlap — a business line of credit is the most common way to finance inventory because it’s revolving: you draw to buy stock and the credit refills as you repay from sales. Dedicated inventory or purchase-order funding can make sense for large one-time buys. Compare both and take the cheapest option that funds in time for your purchase window.

How fast can I get inventory funding before a busy season?

Plan two to four weeks ahead for the best rates, but if you’re tight, working capital and lines of credit fund as fast as the same day to 48 hours. Apply before your busy season when your bank statements look strongest, which improves both approval odds and terms.