| Lender | User ratings | Best for… | Max. loan amount | Term length | Min. interest rate | Time in business | |
|---|---|---|---|---|---|---|---|
 |
User Ratings & Reviews
Ratings and reviews are from real consumers who have used the lending partner’s services. | Businesses that need quick funding | $250,000 | Up to 24 months | 31.30% Minimum APR offered to at least 5% of customers (not the lowest rate offered) | 12 months | Get Business Loan Offers |
 | User ratings coming soon | Businesses with ongoing needs | $250,000 | Up to 12 months | 7.80% | 6 months | Get Business Loan Offers |
 |
User Ratings & Reviews
Ratings and reviews are from real consumers who have used the lending partner’s services. | Startup businesses | $250,000 | 3 or 6 months | 4.66% to 8.99%
| 3 months | Get Business Loan Offers |
 | User ratings coming soon | Borrowers with excellent credit | $250,000 | 6 to 24 months | 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 Each draw counts as a separate installment loan. Single-repayment loans will have different rates and terms. | 12 months | Get Business Loan Offers |
 |
User Ratings & Reviews
Ratings and reviews are from real consumers who have used the lending partner’s services. | Businesses seeking large loan amounts | $1,500,000 | 4 to 18 months | 1.13 factor rate | 6 months | Get Business Loan Offers |
 |
User Ratings & Reviews
Ratings and reviews are from real consumers who have used the lending partner’s services. | Borrowers with bad credit | $600,000 | 6 to 24 months | 1.11 factor rate | 6 months | Get Business Loan Offers |
 | User ratings coming soon | Borrowers who need extra time to pay off their loan | $500,000 | 6 to 60 months | 7.49% | 24 months | Get Business Loan Offers |
Learn more about how we chose our picks.
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%
Up to 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.
In order to qualify, you’ll need to meet Bluevine’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.
Up to $250,000
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 $250,000, 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
Each draw counts as a separate installment loan. Single-repayment loans will have different rates and 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 60 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 60 to cover your inventory costs, with repayment terms giving you up to 60 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.
Financing for inventory loans can come as either term loans or lines of credit. Picking the best inventory financing loan depends on your business’s eligibility criteria and overall needs.
A business term loan is a lump sum of money provided upfront that you must repay in fixed daily, weekly or monthly installments. Repayment terms for short-term loans tend to range from three to 24 months, so if you’re using the funds to purchase inventory, you’ll want to consider how quickly you can resell or use that inventory to generate a profit.
Unlike a term loan, an inventory line of credit provides access to revolving funding you can withdraw when needed rather than receiving a lump sum all at once. Once you repay the debt, you can withdraw funds up to your credit limit, only paying interest on the amounts you use. This type of flexible funding allows you to purchase business inventory as you need it.
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.
| Pros | Cons |
|---|---|
Quick funding times You can usually get the money for inventory loans within a few business days. Inventory can be used as collateral Business or personal assets are typically not required, making it less risky for the business owner if they should default. Lenient requirements Newer businesses and those with limited credit can still qualify. | May come with fees An appraisal fee for inventory may be required, along with possible origination fees and prepayment penalties. Might require a minimum loan amount Depending on the lender, there might be a specific minimum loan amount to borrow for approval. High interest rates Interest rates can often be higher than other financing options. |
Picking the best small business inventory loan can be challenging, especially if you’re eligible for multiple offers. Consider the following factors when comparing inventory finance solutions.
Interest rate: Business loan interest rates can vary based on your credit profile and other criteria. You can convert factor rates to annual percentage rates (APRs) to better compare offers. Keep in mind that inventory financing loans will typically have higher rates than traditional business or SBA loans.
Repayment term: Inventory loans are usually provided by alternative online lenders that often require daily or weekly payments instead of the more common monthly repayment schedule. Make sure to crunch the numbers in advance to ensure you can manage to repay the debt.
Time to fund: Emergency business loans can help cover your most urgent inventory needs within a day or two, but they often come with significantly higher fees. If you can wait, you might get better rates with a traditional bank or SBA loan.
Additional fees: Some inventory lenders charge origination fees, late charges and business loan prepayment penalties. Make sure to add these to the total loan cost to make sure it’s worth it.
Business inventory loans have many advantages, such as quick funding times and lenient eligibility requirements. However, if inventory financing isn’t a perfect fit for you, here are some other small business financing options to consider.
While inventory financing provides funds to buy inventory with either a term loan or a line of credit, invoice factoring sells your unpaid invoices to a factoring company for an advance payment. The factoring company then collects your customers’ payments on your behalf, paying you the remaining balance minus a factoring fee.
This type of financing is usually best for businesses with an excessive amount of unpaid invoices.
With a merchant cash advance (MCA), your business can receive cash as a lump sum by borrowing against future credit and debit card sales. Eligibility requirements can be more lenient, and no collateral is required, but the lender walks away with a percentage of the daily credit card sales the business makes.
While this borrowing method can be expensive, it’s an option to consider if your business needs quick access to capital.
Purchase order financing helps businesses pay for the goods or materials needed to fulfill purchase orders. A purchase order financing company pays the supplier’s costs directly, allowing you to complete the order. After orders are delivered, your customer or client pays the purchase order financing company directly and you will receive the payout amount minus a fee.
This type of funding is ideal for wholesalers and distributors.
Backed by the U.S. Small Business Administration (SBA), the popular SBA 7(a) loan can cover various business expenses, including inventory, operating costs and equipment financing. Similar to inventory financing, the SBA 7(a) loans can come as a term loan or a line of credit with the SBA CAPLine program.
Vendor financing is when an equipment or supplies vendor works alongside a lender to provide funding to a small business. A small business could purchase materials or equipment from the vendor and then finance it with the lender working with the vendor. Vendor financing can either be as a loan or a lease.
However, since vendor financing prioritizes speed and convenience, be aware that it often comes with higher rates.
We reviewed the leading inventory financing companies to determine the overall best seven inventory finance loans. To make our list, lenders had to meet the following criteria:
