Best of
Best Inventory Financing Loans for Businesses in 2020
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on Lendio's website
Our picks for
Inventory lines of credit
Kabbage - Line of credit
Est. APR
24.00 - 99.00%
Min. Credit Score
560
Pros
- Financing up to $250,000 available within a few days.
- Accepts low credit scores.
Cons
- Rates are high compared to other online lenders.
- Must have online checking or PayPal account to verify cash flow.
- Fixed-fee structure means early repayment does not save interest.
Qualifications
- Minimum credit score: 560.
- Minimum time in business: 1 year.
- Minimum annual revenue: $50,000.
Fundbox - Line of credit
Est. APR
10.10 - 79.80%
Min. Credit Score
500
Pros
- Cash can be available by the next day.
- Low minimum credit score requirement.
Cons
- Rates are high compared to traditional banks.
Qualifications
- Minimum credit score: 500.
- Minimum time in business: 3 months.
- Minimum annual revenue: $50,000.
BlueVine - Line of credit
Est. APR
15.00 - 78.00%
Min. Credit Score
600
Pros
- Offers options for businesses less than a year old.
- Cash can be available within 12 to 24 hours.
Cons
- Short repayment term results in higher payment amounts.
- Requires personal guarantee.
- Not available in North Dakota, South Dakota or Vermont.
Qualifications
- 6-month line of credit
- Minimum credit score: 600.
- Minimum time in business: 6 months.
- Minimum annual revenue: $100,000.
- 12-month line of credit
- Minimum credit score: 620.
- Minimum time in business: 2 years.
- Minimum annual revenue: $450,000.
StreetShares - Line of credit
Est. APR
8.00 - 39.90%
Min. Credit Score
600
Pros
- Competitive rates among online lenders.
- No prepayment penalty.
Cons
- Requires weekly repayments.
- Financing amounts limited to 20% of annual revenue.
Qualifications
- Minimum credit score: 600.
- Minimum time in business: 1 year.
- Minimum annual revenue: $75,000.
- No bankruptcies in the past 3 years.
- Unavailable to borrowers in North Dakota, South Dakota, Rhode Island, Montana, and Nevada. Unavailable to sole proprietorships in Delaware, Minnesota, Nebraska, New Jersey, or New York.
Our picks for
Inventory loans
Credibility Capital - Online term loan
Est. APR
19.99 - 24.99%
Min. Credit Score
680
Pros
- Competitive rates among online lenders.
- No prepayment penalty.
- Extra monthly payments can save interest cost.
Cons
- Short repayment term results in higher payment amounts.
- Requires high minimum credit score and revenue.
- Requires business lien and may require personal guarantee.
- Not available in Nevada, North Dakota, South Dakota, or Vermont.
Qualifications
- Minimum credit score: 680.
- Minimum time in business: 2 years.
- Minimum annual revenue: $250,000.
- No bankruptcies in the past 5 years.
OnDeck - Online term loan
Est. APR
9.00 - 99.00%
Min. Credit Score
600
Pros
- Cash can be available within the same business day.
- Requires low minimum credit score.
- Less paperwork than most lenders.
Cons
- Fixed-fee structure means early repayment will not save interest.
- Requires frequent (daily or weekly) repayments.
- Requires business lien and personal guarantee.
Qualifications
- Minimum credit score: 600.
- Minimum time in business: 3 years.
- Minimum annual revenue: $250,000.
- No bankruptcies in the past 2 years.
Easily get real, personalized small business loan rates to compare — not just ranges or estimates.
It's free and won't affect your credit.
on Lendio's website
Summary of Best Inventory Financing Loans for Businesses in 2020
| Lender | Best For | Est. APR | Min. Credit Score |
|---|---|---|---|
Kabbage - Line of credit | Inventory lines of credit | 24.00 - 99.00% | 560 |
Fundbox - Line of credit | Inventory lines of credit | 10.10 - 79.80% | 500 |
BlueVine - Line of credit | Inventory lines of credit | 15.00 - 78.00% | 600 |
StreetShares - Line of credit | Inventory lines of credit | 8.00 - 39.90% | 600 |
Credibility Capital - Online term loan | Inventory loans | 19.99 - 24.99% | 680 |
OnDeck - Online term loan | Inventory loans | 9.00 - 99.00% | 600 |
Inventory lines of credit
If you want fast cash: Kabbage offers a working-capital line of credit of up to $250,000. The company requires a minimum credit score of 560 to qualify. Borrowing costs, though, may be higher than other options.
Fundbox provides a short-term line of credit of up to $100,000, with weekly repayments up to 12 weeks. Funding is as fast as the next business day.
If you have less than a year in business: BlueVine offers a six-month line of credit of up to $250,000. It requires just six months in business to qualify.
Unlike Kabbage and Fundbox, BlueVine requires a personal credit score starting at 600. For more-established businesses, BlueVine also offers a 12-month option, which requires a credit score starting at 620 and at least two years in business.
If you want the lowest rates: StreetShares offers a line of credit with the lowest starting rates among these options. Financing maxes out at 20% of your revenue for companies that are making at least $75,000 in annual revenue.
If you have small recurring purchases: You may want to consider a business credit card. Your credit limit may be smaller than a line of credit, but advantages include rewards, cash back and an introductory 0% APR period. You can qualify based on your personal credit score even if you don’t have an established business.
Inventory loans
If you have strong credit and want competitive rates: Online lender Credibility Capital requires a personal credit score starting at 680 to qualify, and you’ll need at least two years in business and a minimum of $250,000 in annual revenue.
If you want quick approval and ease of application: OnDeck’s term loan application takes less than 10 minutes, and loans can be transferred to a business bank account as fast as 24 hours. Its minimum personal credit score requirement of 600 is lower than the one at Credibility Capital, but typical OnDeck borrowers have scores of 680 to 720.
Compare small-business loans
For a look beyond inventory loans, check out NerdWallet’s small-business loans tool. We gauged lender trustworthiness, market scope and user experience, among other factors, and arranged the lenders by categories that include your revenue and how long you’ve been in business.
Last updated on January 6, 2020
To recap our selections...
NerdWallet's Best Inventory Financing Loans for Businesses in 2020
- Kabbage - Line of credit: Best for Inventory lines of credit
- Fundbox - Line of credit: Best for Inventory lines of credit
- BlueVine - Line of credit: Best for Inventory lines of credit
- StreetShares - Line of credit: Best for Inventory lines of credit
- Credibility Capital - Online term loan: Best for Inventory loans
- OnDeck - Online term loan: Best for Inventory loans
