Inventory financing refers to a line of credit or term loan that a small-business owner uses to purchase products to sell. It can help keep your shelves stocked during a busy season, or allow you to buy products in bulk at a discount.
Lines of credit offer more flexibility than term loans and work best for financing ongoing inventory purchases. You get a set amount of money you can tap into as needed, and you pay back only what you’ve borrowed.
Term loans may have higher borrowing amounts and longer repayment periods, making them a better choice for financing large, one-time inventory purchases.
We’ve rounded up the best inventory loans based on financing type.
Inventory lines of credit: Kabbage, Fundbox, BlueVine and StreetShares
Inventory loans: Credibility Capital, OnDeck
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.
- Loan amount: $2,000 to $250,000.
- APR: 24% to 99%.
- Loan term: 6, 12 or 18 months.
- Funding time: A few minutes to several days.
- Read our Kabbage review.
Line of Credit
- Loan amount: $1,000 to $100,000.
- APR: 10.1% to 79.8%.
- Loan term: 12 weeks.
- Funding time: As fast as next business day.
- Read our Fundbox review
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.
Line of Credit
- Loan amount: $5,000 to $250,000.
- APR: 15% to 78%.
- Loan term: Repaid over 6 or 12 months.
- Funding time: As fast as 24 hours.
- Read our BlueVine review.
If you want the lowest rates: StreetShares offers a line of credit with the lowest APR range among these options. Financing maxes out at 20% of your revenue for companies that are making at least $75,000 in annual revenue.
Line of Credit
- Standard loan amount: $5,000 to $250,000.
- APR: 8% to 39.99%.
- Loan term: 3 to 36 months.
- Funding time: 0 to 5 days.
- Read our StreetShares review
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.
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.
- Loan amount: $50,000 to $400,000.
- APR: 10% to 25%.
- Loan term: One, two or three years.
- Funding time: Seven days on average.
- Read our Credibility Capital review.
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.
- Loan amount: $5,000 to $500,000.
- APR: 9% to 99%.
- Loan term: Repaid daily or weekly for 3 to 36 months.
- Funding time: As fast as 24 hours but typically a few days.
- Read our OnDeck review.
*APRs change quarterly
Inventory financing: Compare loan options
Compare 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.