{"id":675,"date":"2019-12-06T21:31:46","date_gmt":"2019-12-06T21:31:46","guid":{"rendered":"https:\/\/www.shipbob.com\/uk\/blog\/what-is-inventory-financing\/"},"modified":"2025-07-08T22:25:02","modified_gmt":"2025-07-08T22:25:02","slug":"what-is-inventory-financing","status":"publish","type":"blog","link":"https:\/\/www.shipbob.com\/uk\/blog\/what-is-inventory-financing\/","title":{"rendered":"Inventory Financing: Getting Inventory Loans to Help Grow Your Business"},"content":{"rendered":"\n<div class=\"wp-block-shipbob-blocks-single-toc single-toc\" data-controller=\"blog-toc-controller\" data-action=\"scroll@window-&gt;blog-toc-controller#scrollChanged:passive\" id=\"toc-component\"><div class=\"single-toc-overview\"><p>Table of Contents<\/p><div class=\"single-toc-read-time\"><p>** Minutes<\/p><\/div><\/div>\n<p><a href=\"#h-what-is-inventory-financing\">What is inventory financing?<\/a><\/p>\n\n\n\n<p><a href=\"#h-how-does-inventory-financing-work\">How does inventory financing work?<\/a><\/p>\n\n\n\n<p><a href=\"#h-why-companies-need-inventory-financing\">Why companies need inventory financing<\/a><\/p>\n\n\n\n<p><a href=\"#h-2-traditional-options-for-inventory-financing\">2 Traditional options for inventory financing<\/a><\/p>\n\n\n\n<p><a href=\"#h-4-other-ways-companies-get-capital\">4 Other ways companies get capital to purchase inventory<\/a><\/p>\n\n\n\n<p><a href=\"#h-what-you-need-when-applying-for-traditional-financing\">What you need when applying for traditional financing<\/a><\/p>\n\n\n\n<p><a href=\"#h-alternatives-to-traditional-options-for-inventory-financing\">Alternatives to traditional options for inventory financing<\/a><\/p>\n\n\n\n<p><a href=\"#h-what-should-you-do-next\">What should you do next?<\/a><\/p>\n<\/div>\n\n\n\n<p>For product companies there are a few large cost centres that affect the trajectory of the business: Shipping and logistics, marketing, and inventory. By leveraging ecommerce financing options, companies can unlock the shackles of the cost centres and increase potential growth.<\/p>\n\n\n\n<p id=\"h-what-is-inventory-financing\">Below we will dive into the financing options associated with acquiring inventory.<\/p>\n\n\n\n<section class=\"wp-block-shipbob-blocks-single-heading-accordion single-heading-accordion container max-width-blog\" data-controller=\"accordion-controller\" data-accordion-controller-open-value=\"false\"><div class=\"single-heading-accordion-heading-container\" data-accordion-controller-target=\"actionElement\"><h2 class=\"single-heading-accordion-title h2\">What is inventory financing?<\/h2><\/div><div class=\"single-heading-accordion-inner-content\" data-accordion-controller-target=\"innerContent\">\n<p>In short, inventory financing is when you obtain financing for inventory. If this sounds simple, you\u2019re right \u2014 but the devil is in the details. Another related option to consider is <a href=\"https:\/\/abcfinance.co.uk\/business-loans\/supply-chain-finance\/\" target=\"_blank\" rel=\"noreferrer noopener\">supply chain financing<\/a>, which helps optimise cash flow by extending payment terms with suppliers while still allowing them to get paid promptly. This type of financing can be particularly useful for businesses looking to maintain a steady inventory flow without straining their working capital.<\/p>\n\n\n\n<p>In theory, you could get any type of financing and spend it on inventory, but some financing options are built specifically for inventory.<\/p>\n\n\n\n<p id=\"h-why-companies-need-inventory-financing\">Like a <a href=\"https:\/\/www.sofi.com\/first-time-home-buyer-guide\/\" target=\"_blank\" rel=\"noreferrer noopener\">mortgage<\/a> that uses a home as collateral for the loan, certain inventory financing solutions use the inventory as collateral. This gives the lender comfort that in a worst-case scenario where the company defaults on the loan they will have access to something that enables them to get paid back.<\/p>\n<\/div><\/section>\n\n\n\n<section class=\"wp-block-shipbob-blocks-single-heading-accordion single-heading-accordion container max-width-blog\" data-controller=\"accordion-controller\" data-accordion-controller-open-value=\"false\"><div class=\"single-heading-accordion-heading-container\" data-accordion-controller-target=\"actionElement\"><h2 class=\"single-heading-accordion-title h2\">How does inventory financing work?<\/h2><\/div><div class=\"single-heading-accordion-inner-content\" data-accordion-controller-target=\"innerContent\">\n<p>Inventory financing is the same as any other loan in its basic structure. Here are a few steps you should take:&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-1-research-loans\">1. Research loans<\/h3>\n\n\n\n<p>You want to look for loans that meet your criteria: financing amount, payback structure, company requirements (age, profitability, etc.), and price.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-2-apply-for-the-loan\">2. Apply for the loan<\/h3>\n\n\n\n<p>This can be specific to the lender, but the application process revolves around data. More traditional lenders will have a more cumbersome process while modern lenders will <a href=\"https:\/\/adeptia.com\/blog\/bolstering-shipping-operations-technology-integration\" target=\"_blank\" rel=\"noreferrer noopener\">utilise technology<\/a> to make this process more streamlined.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-3-get-funds-for-inventory\">3. Get funds for inventory<\/h3>\n\n\n\n<p>Most lenders will forward the cash directly to your bank account, but some inventory financers can pay your manufacturer directly (if you are financing inventory that isn\u2019t yet in stock).<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-4-pay-back-the-loan\">4. Pay back the loan<\/h3>\n\n\n\n<p id=\"h-why-companies-need-inventory-financing\">This is based on the specific loan agreement, but a few common payback mechanisms include: a fixed dollar amount per month or week, a variable amount based on your sales, or completely variable where the debtor (you) controls exactly how much is paid back and at what time.<\/p>\n<\/div><\/section>\n\n\n\n<section class=\"wp-block-shipbob-blocks-single-heading-accordion single-heading-accordion container max-width-blog\" data-controller=\"accordion-controller\" data-accordion-controller-open-value=\"false\"><div class=\"single-heading-accordion-heading-container\" data-accordion-controller-target=\"actionElement\"><h2 class=\"single-heading-accordion-title h2\">Why companies need inventory financing<\/h2><\/div><div class=\"single-heading-accordion-inner-content\" data-accordion-controller-target=\"innerContent\">\n<p>Companies generally use financing for inventory purposes due to a few core reasons.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-1-they-need-to-buy-more-inventory\">1. They need to buy more inventory<\/h3>\n\n\n\n<p>Many companies experience out-of-stock situations since the demand for their product outstripped what they could afford. Inventory financing allows companies to put in larger orders to their manufacturers so they have enough inventory to eliminate out-of-stock issues when they arise.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-2-they-need-to-unlock-capital-tied-up-in-inventory\">2. They need to unlock capital tied up in inventory.<\/h3>\n\n\n\n<p>This is for companies who are able to put in a large enough order so they won\u2019t go out of stock, but need to use some of the capital locked up in their current inventory to use in other areas:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Increasing marketing spend<\/li>\n\n\n\n<li>During seasonal periods when sales jump up (and more inventory is required but companies also need to expand their marketing budget)<\/li>\n\n\n\n<li>Investing in R&amp;D<\/li>\n\n\n\n<li id=\"h-2-traditional-options-for-inventory-financing\">Investing in new product lines to stay relevant<\/li>\n<\/ul>\n<\/div><\/section>\n\n\n\n<section class=\"wp-block-shipbob-blocks-single-heading-accordion single-heading-accordion container max-width-blog\" data-controller=\"accordion-controller\" data-accordion-controller-open-value=\"false\"><div class=\"single-heading-accordion-heading-container\" data-accordion-controller-target=\"actionElement\"><h2 class=\"single-heading-accordion-title h2\">2 Traditional options for inventory financing<\/h2><\/div><div class=\"single-heading-accordion-inner-content\" data-accordion-controller-target=\"innerContent\">\n<p>There are two traditional options specific for inventory financing. Mostly from banks, these loans can take different forms which we\u2019ll investigate below, along with their pros and cons.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-wip-finance\">WIP finance<\/h3>\n\n\n\n<p><a href=\"https:\/\/www.shipbob.com\/blog\/work-in-process-inventory\/\">Work-in-process (WIP)<\/a> financing in when a lender will finance the manufacturing process, often paying your sub-suppliers for components directly.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-pros\">Pros:<\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>It\u2019s very useful if you have long leads times and complicated product architecture.<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-cons\">Cons:<\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>You don\u2019t always finance the inventory after it becomes <a href=\"https:\/\/www.shipbob.com\/blog\/finished-goods-inventory\/\">finished goods inventory<\/a> (i.e., you need to pay the loan back before you sell the inventory).<\/li>\n\n\n\n<li>There is often a lot of operational headaches since the lender needs to keep close tabs on the collateral at the manufacturer.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-po-financing\">PO financing<\/h3>\n\n\n\n<p>Once a purchase order (PO) is received (normally from a large retailer), the lender will give you money in order to get the PO fulfilled.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-pros-0\">Pros:<\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A great option if you have a lot of large POs from credit-worthy clients (think nationwide retailers).<\/li>\n\n\n\n<li>You often don\u2019t have to pay it back until the company creating the PO actually pays their invoice.<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-cons-0\">Cons:<\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li id=\"h-4-other-ways-companies-get-capital\">You need to have a PO to leverage this type of financing, which isn\u2019t possible for modern direct-to-consumer <a href=\"https:\/\/www.shipbob.com\/best-fulfillment-provider-ecommerce-businesses\/\">ecommerce businesses<\/a>.<\/li>\n<\/ul>\n<\/div><\/section>\n\n\n\n<section class=\"wp-block-shipbob-blocks-single-heading-accordion single-heading-accordion container max-width-blog\" data-controller=\"accordion-controller\" data-accordion-controller-open-value=\"false\"><div class=\"single-heading-accordion-heading-container\" data-accordion-controller-target=\"actionElement\"><h2 class=\"single-heading-accordion-title h2\">4 Other ways companies get capital to purchase inventory<\/h2><\/div><div class=\"single-heading-accordion-inner-content\" data-accordion-controller-target=\"innerContent\">\n<p>Here are some other lending options businesses have traditionally used to purchase inventory that don\u2019t involve using inventory as collateral:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-personal-loans\">Personal loans<\/h3>\n\n\n\n<p><a href=\"https:\/\/www.lendingclub.com\/loans\/resource-center\/what-is-a-personal-loan\" target=\"_blank\" rel=\"noreferrer noopener\">Personal loans<\/a> are based on your individual credit score (rather than business data) and generally take the form of a \u201cline of credit\u201d or \u201cterm\u201d loan.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-pros-1\">Pros:<\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Can be obtained more quickly than business loans<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-cons-1\">Cons:<\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Generally smaller amounts of cash<\/li>\n\n\n\n<li>There\u2019s a risk as it can affect your personal credit score<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-equity\">Equity<\/h3>\n\n\n\n<p>Equity refers to raising capital and giving up a percentage of the business in return. This is common amongst high-growth companies.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-pros-2\">Pros:<\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Can generally raise a large sum of capital<\/li>\n\n\n\n<li>Doesn\u2019t have to be paid back like a loan<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-cons-2\">Cons:<\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Extremely expensive (since you are giving up a percentage of ownership in your business).<\/li>\n\n\n\n<li>Can take a long time to close funding<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-ar-invoice-factoring\">AR (invoice) factoring<\/h3>\n\n\n\n<p>When you have outstanding invoices (e.g., to a large retailer), you can sell them to an AR factorer. This essentially means you get your invoice paid early for a fee. The factor gets paid from the AR payer.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-pros-3\">Pros:<\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Can leverage the credit of your AR payer for pricing<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-cons-3\">Cons:<\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Not available if you don\u2019t have AR (which often means direct-to-consumer e-commerce companies)<\/li>\n\n\n\n<li>Can only obtain financing after the AR is created (often after payment for inventory is due)<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-business-loans\">Business loans<\/h3>\n\n\n\n<p>This includes a wide variety of options available including term loans and lines of credit.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-pros-4\">Pros:<\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Doesn\u2019t affect your personal credit score<\/li>\n\n\n\n<li>Can get larger dollar amounts for financing<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-cons-4\">Cons:<\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Can be slow to close financing<\/li>\n\n\n\n<li>Generally only for loans $300,000 or more<\/li>\n\n\n\n<li>Many require a lot of paperwork<\/li>\n\n\n\n<li id=\"h-what-you-need-when-applying-for-traditional-financing\">Payback isn\u2019t always aligned with your cash flow<\/li>\n<\/ul>\n<\/div><\/section>\n\n\n\n<section class=\"wp-block-shipbob-blocks-single-heading-accordion single-heading-accordion container max-width-blog\" data-controller=\"accordion-controller\" data-accordion-controller-open-value=\"false\"><div class=\"single-heading-accordion-heading-container\" data-accordion-controller-target=\"actionElement\"><h2 class=\"single-heading-accordion-title h2\">What you need when applying for traditional financing<\/h2><\/div><div class=\"single-heading-accordion-inner-content\" data-accordion-controller-target=\"innerContent\">\n<p>When obtaining traditional financing it can be a burden to produce the required documents, including:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Balance sheets<\/li>\n\n\n\n<li>Sales forecasts for 2+ years (or however long the loan is for)<\/li>\n\n\n\n<li>Tax returns for 2+ years<\/li>\n\n\n\n<li>Inventory lists (this may need to be updated monthly)<\/li>\n\n\n\n<li id=\"h-alternatives-to-traditional-options-for-inventory-financing\">Profit\/loss statements for 2+ years<\/li>\n<\/ul>\n<\/div><\/section>\n\n\n\n<section class=\"wp-block-shipbob-blocks-single-heading-accordion single-heading-accordion container max-width-blog\" data-controller=\"accordion-controller\" data-accordion-controller-open-value=\"false\"><div class=\"single-heading-accordion-heading-container\" data-accordion-controller-target=\"actionElement\"><h2 class=\"single-heading-accordion-title h2\">Alternatives to traditional options for inventory financing<\/h2><\/div><div class=\"single-heading-accordion-inner-content\" data-accordion-controller-target=\"innerContent\">\n<p>At this point you may be thinking, \u201cI like the sound of the benefits associated with inventory financing (larger inventory orders, more cash for marketing and R&amp;D), but don\u2019t like the sound of all the burdensome aspects associated with traditional loans used for inventory financing (preparing documents, repayment not aligned with cash flow, only available to companies with large retail clients). Are there some other options available that don\u2019t have the same downsides?\u201d<\/p>\n\n\n\n<p>Over the past few years, there have been a few technology-first solutions that may be a good fit.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-pigment-s-budget-planning-software\">Pigment&#8217;s budget planning software<\/h3>\n\n\n\n<p>Implementing solutions such as <a href=\"https:\/\/www.pigment.com\/use-case\/budget-planning-forecasting\">Pigment&#8217;s budget planning software<\/a> can significantly enhance financial stability, allowing companies to predict future cash flow and allocate funds effectively for inventory requisitions and other growth channels.<\/p>\n\n\n\n<p>Pigment is a modern, all-in-one budgeting and forecasting platform that helps ecommerce businesses make better financial decisions with real-time insights. <\/p>\n\n\n\n<p>Instead of relying on static spreadsheets, brands can use Pigment to dynamically model inventory needs, cash flow, and funding requirements, allowing them to plan ahead with confidence \u2014 and potentially reduce or better time their need for financing.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-pros-5\"><strong>Pros<\/strong><\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Real-time visibility into inventory costs, margins, and financial projections<\/li>\n\n\n\n<li>Scenario planning tools to model financing needs and growth investments<\/li>\n\n\n\n<li>Streamlines collaboration between finance, operations, and leadership teams<\/li>\n\n\n\n<li>Helps reduce dependency on external financing by improving cash flow planning<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-cons-5\"><strong>Cons<\/strong><\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Doesn\u2019t offer financing directly (it\u2019s a planning tool, not a lender)<\/li>\n\n\n\n<li>Requires some upfront configuration and integration with existing systems<\/li>\n\n\n\n<li>May be more powerful than needed for very early-stage businesses<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-kickpay-s-ecommerce-financing\">Kickpay&#8217;s ecommerce financing<\/h3>\n\n\n\n<p>Built specifically for ecommerce sellers, <a href=\"https:\/\/kickpay.com\/?utm_medium=blog&amp;utm_source=Shipbob_blog\" target=\"_blank\" rel=\"noreferrer noopener\">Kickpay<\/a> unlocks the capital you have tied up in inventory, or pays your manufacturer directly for new inventory, and only gets paid back when goods ship to your customers.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-pros-6\">Pros<\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>No documentation needed<\/li>\n\n\n\n<li>No impact to personal credit score<\/li>\n\n\n\n<li>Only pay back loan when inventory is shipped to customer<\/li>\n\n\n\n<li>Can qualify with only 3 months of sales history<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-cons-6\">Cons<\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Can\u2019t finance <a href=\"https:\/\/www.shipbob.com\/blog\/work-in-process-inventory\/\">work in progress<\/a> inventory<\/li>\n\n\n\n<li>Not good for self-fulfillers (you need to use a third-party <a href=\"https:\/\/www.shipbob.com\/blog\/differences-warehouse-fulfillment-center\/\">fulfilment centre<\/a> like ShipBob to qualify)<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-inventory-crowdfunding\">Inventory crowdfunding<\/h3>\n\n\n\n<p>A great way to leverage the community to finance work-in-progress inventory.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-pros-7\">Pros:<\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Can finance work in progress<\/li>\n\n\n\n<li>Faster qualification than traditional loans<\/li>\n\n\n\n<li>No impact to personal credit score<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-cons-7\">Cons<\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Can\u2019t unlock value tied to inventory already in stock<\/li>\n\n\n\n<li>Payback may not be tied to cash flow<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-merchant-cash-advance\">Merchant cash advance<\/h3>\n\n\n\n<p>Make an estimate on how much revenue your business will make over the next 3-6 months and forward cash to you. Get paid back a certain percentage of sales on a fixed schedule (daily or weekly).<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-pros-8\">Pros<\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>No impact to personal credit score<\/li>\n\n\n\n<li>No documentation needed<\/li>\n\n\n\n<li>Only pay back when company makes a sale<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-cons-8\">Cons<\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li id=\"h-what-should-you-do-next\">Generally offer smaller financing amounts, especially if your business has multiple sales channels<\/li>\n<\/ul>\n<\/div><\/section>\n\n\n\n<section class=\"wp-block-shipbob-blocks-single-heading-accordion single-heading-accordion container max-width-blog\" data-controller=\"accordion-controller\" data-accordion-controller-open-value=\"false\"><div class=\"single-heading-accordion-heading-container\" data-accordion-controller-target=\"actionElement\"><h2 class=\"single-heading-accordion-title h2\">What should you do next?<\/h2><\/div><div class=\"single-heading-accordion-inner-content\" data-accordion-controller-target=\"innerContent\">\n<p>Aiming to finance inventory is a smart thing to do for companies that have a large cost centre associated with inventory, especially around the seasonal period since it maximises the sales potential of the business by unlocking capital.<\/p>\n\n\n\n<p>Picking the correct financing option is now easier than ever with more modern solutions on the market. In order to pick the best one, you should ask yourself a few key questions:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>When do you need the cash: at the down payment for inventory, on shipment from your manufacturer, or after?<\/li>\n\n\n\n<li>What do you need to use the cash for: paying for inventory or unlocking capital tied up in inventory you already have for marketing, R&amp;D, etc.?&nbsp;<\/li>\n\n\n\n<li>When do you want to pay back the financing: in a large lump sum or ongoing in smaller increments?&nbsp;<\/li>\n\n\n\n<li>How much cash do you need to be impactful for the business?<\/li>\n<\/ul>\n\n\n\n<p>By answering these questions accurately it will point you towards the most appropriate form of financing.&nbsp;<\/p>\n<\/div><\/section>\n\n\n\n<section class=\"wp-block-shipbob-blocks-single-heading-accordion single-heading-accordion container max-width-blog\" data-controller=\"accordion-controller\" data-accordion-controller-open-value=\"false\"><div class=\"single-heading-accordion-heading-container\" data-accordion-controller-target=\"actionElement\"><h2 class=\"single-heading-accordion-title h2\">ShipBob Capital can help you increase cashflow &amp; grow your business<\/h2><\/div><div class=\"single-heading-accordion-inner-content\" data-accordion-controller-target=\"innerContent\">\n<p>Finding access to affordable capital can be a huge challenge for ecommerce merchants that often limits growth. <\/p>\n\n\n\n<p>To help increase cash flow, ShipBob merchants can leverage ShipBob Capital: a referral program that enables you to access flexible, fast, affordable business financing built for ecommerce brands. Powered by Slope and issued funds by J.P. Morgan, ShipBob connects your existing business data to simplify approval and achieve best in class rates.*&nbsp;<\/p>\n\n\n\n<p>With ShipBob Capital, powered by Slope and J.P. Morgan, you can apply with Slope in minutes from the link under \u201cShipBob Capital\u201d in your ShipBob dashboard and get approved for up to USD $10M in 1-2 business days, with access up to $250K instantly. From there, you can draw funds as needed, and choose between&nbsp;30, 60, 90, or 120-day repayment terms \u2013 whichever is best for your business.&nbsp;<\/p>\n\n\n\n<p><em>*Financing is provided by Lead Bank, Member FDIC, and powered by Slope. ShipBob Capital is a referral service offered by ShipBob. ShipBob is not a lender and does not originate or service loans. All credit decisions, underwriting, and servicing are handled by licensed financial institutions. Business-purpose loans only. Subject to credit approval, eligibility requirements, and terms and conditions. Visit<a href=\"https:\/\/slopepay.com\/\" target=\"_blank\" rel=\"noreferrer noopener\"> slopepay.com<\/a> for more information.&nbsp;<\/em><\/p>\n<\/div><\/section>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-store-inventory-with-shipbob\">Store inventory with ShipBob<\/h2>\n\n\n\n<p>If you\u2019re in need of a third-party logistics (<a href=\"https:\/\/www.shipbob.com\/3pl\/\">3PL<\/a>) company to store your inventory and pack orders as ecommerce customers place them online, get in touch with ShipBob today.&nbsp;<\/p>\n\n\n\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.shipbob.com\/quote\/\"><strong>Request a Fulfilment Quote<\/strong><\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Choosing the right inventory financing option is easier than ever. Learn how inventory financing works and compare the different options available.<\/p>\n","protected":false},"author":116,"featured_media":676,"parent":0,"template":"","meta":{"content-type":"","inline_featured_image":false,"footnotes":""},"blogcategories":[8],"class_list":["post-675","blog","type-blog","status-publish","has-post-thumbnail","hentry","blogcategories-inventory"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.5 (Yoast SEO v27.5) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Inventory Financing: Getting Inventory Loans to Help Grow Your Business<\/title>\n<meta name=\"description\" content=\"Choosing the right inventory financing option is easier than ever. Learn how inventory financing works and compare the different options available.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.shipbob.com\/uk\/blog\/what-is-inventory-financing\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Inventory Financing: Getting Inventory Loans to Help Grow Your Business\" \/>\n<meta property=\"og:description\" content=\"Choosing the right inventory financing option is easier than ever. Learn how inventory financing works and compare the different options available.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.shipbob.com\/uk\/blog\/what-is-inventory-financing\/\" \/>\n<meta property=\"og:site_name\" content=\"ShipBob UK\" \/>\n<meta property=\"article:modified_time\" content=\"2025-07-08T22:25:02+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.shipbob.com\/uk\/wp-content\/uploads\/sites\/32\/2022\/07\/Piggy-Bank-Test.jpg?w=1280\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"1280\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"10 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.shipbob.com\\\/uk\\\/blog\\\/what-is-inventory-financing\\\/\",\"url\":\"https:\\\/\\\/www.shipbob.com\\\/uk\\\/blog\\\/what-is-inventory-financing\\\/\",\"name\":\"Inventory Financing: Getting Inventory Loans to Help Grow Your Business\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.shipbob.com\\\/uk\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.shipbob.com\\\/uk\\\/blog\\\/what-is-inventory-financing\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.shipbob.com\\\/uk\\\/blog\\\/what-is-inventory-financing\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.shipbob.com\\\/uk\\\/wp-content\\\/uploads\\\/sites\\\/32\\\/2022\\\/07\\\/Piggy-Bank-Test.jpg\",\"datePublished\":\"2019-12-06T21:31:46+00:00\",\"dateModified\":\"2025-07-08T22:25:02+00:00\",\"description\":\"Choosing the right inventory financing option is easier than ever. Learn how inventory financing works and compare the different options available.\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.shipbob.com\\\/uk\\\/blog\\\/what-is-inventory-financing\\\/#breadcrumb\"},\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.shipbob.com\\\/uk\\\/blog\\\/what-is-inventory-financing\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\\\/\\\/www.shipbob.com\\\/uk\\\/blog\\\/what-is-inventory-financing\\\/#primaryimage\",\"url\":\"https:\\\/\\\/www.shipbob.com\\\/uk\\\/wp-content\\\/uploads\\\/sites\\\/32\\\/2022\\\/07\\\/Piggy-Bank-Test.jpg\",\"contentUrl\":\"https:\\\/\\\/www.shipbob.com\\\/uk\\\/wp-content\\\/uploads\\\/sites\\\/32\\\/2022\\\/07\\\/Piggy-Bank-Test.jpg\",\"caption\":\"Piggy bank with business stuff, business and finance concept, vintage color tone.\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.shipbob.com\\\/uk\\\/blog\\\/what-is-inventory-financing\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.shipbob.com\\\/uk\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Blog\",\"item\":\"https:\\\/\\\/www.shipbob.com\\\/uk\\\/blog\\\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Inventory Financing: Getting Inventory Loans to Help Grow Your Business\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.shipbob.com\\\/uk\\\/#website\",\"url\":\"https:\\\/\\\/www.shipbob.com\\\/uk\\\/\",\"name\":\"ShipBob UK\",\"description\":\"Just another ShipBob Network site\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.shipbob.com\\\/uk\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-GB\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Inventory Financing: Getting Inventory Loans to Help Grow Your Business","description":"Choosing the right inventory financing option is easier than ever. Learn how inventory financing works and compare the different options available.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.shipbob.com\/uk\/blog\/what-is-inventory-financing\/","og_locale":"en_GB","og_type":"article","og_title":"Inventory Financing: Getting Inventory Loans to Help Grow Your Business","og_description":"Choosing the right inventory financing option is easier than ever. Learn how inventory financing works and compare the different options available.","og_url":"https:\/\/www.shipbob.com\/uk\/blog\/what-is-inventory-financing\/","og_site_name":"ShipBob UK","article_modified_time":"2025-07-08T22:25:02+00:00","og_image":[{"url":"https:\/\/www.shipbob.com\/uk\/wp-content\/uploads\/sites\/32\/2022\/07\/Piggy-Bank-Test.jpg?w=1280","width":1280,"height":1280,"type":"image\/jpeg"}],"twitter_card":"summary_large_image","twitter_misc":{"Est. reading time":"10 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.shipbob.com\/uk\/blog\/what-is-inventory-financing\/","url":"https:\/\/www.shipbob.com\/uk\/blog\/what-is-inventory-financing\/","name":"Inventory Financing: Getting Inventory Loans to Help Grow Your Business","isPartOf":{"@id":"https:\/\/www.shipbob.com\/uk\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.shipbob.com\/uk\/blog\/what-is-inventory-financing\/#primaryimage"},"image":{"@id":"https:\/\/www.shipbob.com\/uk\/blog\/what-is-inventory-financing\/#primaryimage"},"thumbnailUrl":"https:\/\/www.shipbob.com\/uk\/wp-content\/uploads\/sites\/32\/2022\/07\/Piggy-Bank-Test.jpg","datePublished":"2019-12-06T21:31:46+00:00","dateModified":"2025-07-08T22:25:02+00:00","description":"Choosing the right inventory financing option is easier than ever. Learn how inventory financing works and compare the different options available.","breadcrumb":{"@id":"https:\/\/www.shipbob.com\/uk\/blog\/what-is-inventory-financing\/#breadcrumb"},"inLanguage":"en-GB","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.shipbob.com\/uk\/blog\/what-is-inventory-financing\/"]}]},{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/www.shipbob.com\/uk\/blog\/what-is-inventory-financing\/#primaryimage","url":"https:\/\/www.shipbob.com\/uk\/wp-content\/uploads\/sites\/32\/2022\/07\/Piggy-Bank-Test.jpg","contentUrl":"https:\/\/www.shipbob.com\/uk\/wp-content\/uploads\/sites\/32\/2022\/07\/Piggy-Bank-Test.jpg","caption":"Piggy bank with business stuff, business and finance concept, vintage color tone."},{"@type":"BreadcrumbList","@id":"https:\/\/www.shipbob.com\/uk\/blog\/what-is-inventory-financing\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.shipbob.com\/uk\/"},{"@type":"ListItem","position":2,"name":"Blog","item":"https:\/\/www.shipbob.com\/uk\/blog\/"},{"@type":"ListItem","position":3,"name":"Inventory Financing: Getting Inventory Loans to Help Grow Your Business"}]},{"@type":"WebSite","@id":"https:\/\/www.shipbob.com\/uk\/#website","url":"https:\/\/www.shipbob.com\/uk\/","name":"ShipBob UK","description":"Just another ShipBob Network site","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.shipbob.com\/uk\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-GB"}]}},"parsely":{"version":"1.1.0","canonical_url":"https:\/\/shipbob.com\/uk\/blog\/what-is-inventory-financing\/","smart_links":{"inbound":0,"outbound":0},"traffic_boost_suggestions_count":0,"meta":{"@context":"https:\/\/schema.org","@type":"WebPage","headline":"Inventory Financing: Getting Inventory Loans to Help Grow Your Business","url":"http:\/\/www.shipbob.com\/uk\/blog\/what-is-inventory-financing\/","mainEntityOfPage":{"@type":"WebPage","@id":"http:\/\/www.shipbob.com\/uk\/blog\/what-is-inventory-financing\/"},"thumbnailUrl":"https:\/\/www.shipbob.com\/uk\/wp-content\/uploads\/sites\/32\/2022\/07\/Piggy-Bank-Test.jpg?w=160","image":{"@type":"ImageObject","url":"https:\/\/www.shipbob.com\/uk\/wp-content\/uploads\/sites\/32\/2022\/07\/Piggy-Bank-Test.jpg"},"articleSection":"Uncategorized","author":[{"@type":"Person","name":"Andrew McCalister"}],"creator":["Andrew McCalister"],"publisher":{"@type":"Organization","name":"ShipBob UK","logo":""},"keywords":[],"dateCreated":"2019-12-06T21:31:46Z","datePublished":"2019-12-06T21:31:46Z","dateModified":"2025-07-08T22:25:02Z"},"rendered":"<script type=\"application\/ld+json\" class=\"wp-parsely-metadata\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@type\":\"WebPage\",\"headline\":\"Inventory Financing: Getting Inventory Loans to Help Grow Your Business\",\"url\":\"http:\\\/\\\/www.shipbob.com\\\/uk\\\/blog\\\/what-is-inventory-financing\\\/\",\"mainEntityOfPage\":{\"@type\":\"WebPage\",\"@id\":\"http:\\\/\\\/www.shipbob.com\\\/uk\\\/blog\\\/what-is-inventory-financing\\\/\"},\"thumbnailUrl\":\"https:\\\/\\\/www.shipbob.com\\\/uk\\\/wp-content\\\/uploads\\\/sites\\\/32\\\/2022\\\/07\\\/Piggy-Bank-Test.jpg?w=160\",\"image\":{\"@type\":\"ImageObject\",\"url\":\"https:\\\/\\\/www.shipbob.com\\\/uk\\\/wp-content\\\/uploads\\\/sites\\\/32\\\/2022\\\/07\\\/Piggy-Bank-Test.jpg\"},\"articleSection\":\"Uncategorized\",\"author\":[{\"@type\":\"Person\",\"name\":\"Andrew McCalister\"}],\"creator\":[\"Andrew McCalister\"],\"publisher\":{\"@type\":\"Organization\",\"name\":\"ShipBob UK\",\"logo\":\"\"},\"keywords\":[],\"dateCreated\":\"2019-12-06T21:31:46Z\",\"datePublished\":\"2019-12-06T21:31:46Z\",\"dateModified\":\"2025-07-08T22:25:02Z\"}<\/script>","tracker_url":"https:\/\/cdn.parsely.com\/keys\/shipbob.com\/p.js"},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.shipbob.com\/uk\/wp-json\/wp\/v2\/blog\/675","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.shipbob.com\/uk\/wp-json\/wp\/v2\/blog"}],"about":[{"href":"https:\/\/www.shipbob.com\/uk\/wp-json\/wp\/v2\/types\/blog"}],"author":[{"embeddable":true,"href":"https:\/\/www.shipbob.com\/uk\/wp-json\/wp\/v2\/users\/116"}],"version-history":[{"count":9,"href":"https:\/\/www.shipbob.com\/uk\/wp-json\/wp\/v2\/blog\/675\/revisions"}],"predecessor-version":[{"id":22588,"href":"https:\/\/www.shipbob.com\/uk\/wp-json\/wp\/v2\/blog\/675\/revisions\/22588"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.shipbob.com\/uk\/wp-json\/wp\/v2\/media\/676"}],"wp:attachment":[{"href":"https:\/\/www.shipbob.com\/uk\/wp-json\/wp\/v2\/media?parent=675"}],"wp:term":[{"taxonomy":"blogcategories","embeddable":true,"href":"https:\/\/www.shipbob.com\/uk\/wp-json\/wp\/v2\/blogcategories?post=675"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}