Business line of credit · Stock and inventory finance
Business line of credit for Stock and inventory finance
Stock and inventory finance is funding used to buy goods for resale ahead of the season or contract that will sell them, repaid from the sales proceeds rather than from existing working capital.
How a business line of credit works for Stock and inventory finance
For businesses reordering continuously rather than in one seasonal buy, a revolving limit fits better than a term loan. Draw as supplier invoices fall due, repay as stock sells, keep the headroom for the next order. Interest applies only to what is drawn. It also gives you the capacity to act on an opportunistic buy when a supplier clears a line — a discount taken with drawn funds frequently exceeds the interest cost of the drawdown itself.
The cash-flow pattern we plan around
Cash committed to inventory two to four months before the selling season, with proceeds arriving across the season itself and slow-moving lines tying up capital longer.
What stock and inventory finance typically fund
- Seasonal stock ahead of a peak trading period
- Supplier deposits and shipment balances on imports
- Volume buys to secure a better unit price
- Inventory for a new contract or product line
Business line of credit for Stock and inventory finance: the numbers
| Typical amounts | $10,000 – $500,000 |
|---|---|
| Term | 6–24 months |
| Indicative rates | 11.5% – 24% p.a. |
| Repayments | Weekly or monthly minimums on the drawn balance |
| Speed | 1–3 business days |
| Documents stock and inventory finance usually need | ABN, GST registration and 6–12 months of bank statements · Purchase orders or supplier proforma invoices · Stock turn and sales history for the relevant lines |
Rates shown are indicative ranges observed across our lender panel for the period stated. They are not an offer or quote. Your rate depends on your business, the lender, the amount, the term and the security offered. The lender makes the final credit decision.
Key terms
Inventory finance
Inventory finance is short-term funding used to purchase goods for resale, repaid as the stock sells, and sized against expected sell-through rather than against the total value a supplier is willing to ship.
Stock turn
Stock turn is how many times inventory is sold and replaced over a period, and it determines how long a finance facility must run before the goods it funded have generated the cash to repay it.
What is a business line of credit?
A business line of credit is a revolving facility with a pre-approved limit. You borrow only what you need, pay interest only on the drawn balance and can redraw repaid funds without reapplying.
Line of credit vs business loan
A business loan pays a lump sum repaid on a fixed schedule; a line of credit is a flexible limit drawn as needed. Loans suit one-off purchases, lines of credit suit fluctuating working-capital needs.