Stock Finance for Retailers
Retailers need stock on shelves to generate sales, but buying in bulk ties up cash that could be used elsewhere. Stock finance provides a credit facility secured against your inventory, releasing working capital while keeping your shelves stocked.
The facility revolves as you sell stock and buy new — the lender advances a percentage of your stock value, and as you sell and pay down, more credit becomes available. This self-funding cycle means you can hold the right level of stock without cash flow constraints.
Key Benefits
- Buy stock in bulk to secure better supplier pricing
- Revolving facility — repay as you sell, draw as you buy
- No property security — stock is the collateral
- Seasonal flexibility for peak trading periods
Frequently Asked Questions
What advance rate will I get against stock?
Typically 50-70% of stock value at cost. The advance rate depends on the type of stock (non-perishable goods get higher rates), stock turn rate, and whether the stock can be easily valued and liquidated.
Does the stock need to be in a specific location?
Lenders need to know where the stock is and may require periodic stock checks or use of an approved warehouse. For retailers with multiple locations, the facility can cover stock across all sites.
Can e-commerce businesses use stock finance?
Yes. Stock held in your own warehouse or third-party fulfilment centres (3PL) can be financed. FBA (Fulfilled by Amazon) stock is more complex but some specialist providers can accommodate it.
What happens to unsold stock?
If stock becomes slow-moving or obsolete, the lender may reduce the advance rate against that stock. Regular stock reporting and good inventory management help maintain the full facility level.
Related Funding Options
Unsecured Business Loans for Retail Businesses
Stock, marketing, and expansion funding for UK retailers. No property security. Fast decisions for high street and online shops.
Merchant Cash Advance for Retail Businesses
Fund stock purchases, store refits, and marketing with an MCA repaid through your card sales. Flexible finance for UK retailers.
Revenue-Based Finance for Retail & E-Commerce
Growth funding for UK online retailers and e-commerce brands. Repay as a percentage of sales revenue. No equity, no fixed payments.
Ready to Get Funded?
Submit your details and we'll match you with the right lenders from our panel. No obligation, no fees.
Learn About Our Broker NetworkCoreFi is a trading name of JG Core Ltd (Company #16218779, England & Wales). CoreFi acts as a commercial finance broker and does not provide regulated financial advice. All products described are unregulated business-to-business finance. Information on this page is for general guidance only and does not constitute a formal offer of finance. Terms, rates, and availability are subject to lender criteria and may change without notice.