Stock Finance for Wholesalers
By Joshua Giles, Founder and Director · Reviewed by the CoreFi credit team
Last updated 20 July 2026
CoreFi is a broker, not a lender. We do not set rates and lenders make all credit decisions.
In short: £50k - £5M facility over Ongoing (12-month rolling). Stock finance works like this: a lender advances a percentage of your warehouse stock value, typically 50-70% of cost price, and that facility revolves as you sell and replenish.
Stock finance works like this: a lender advances a percentage of your warehouse stock value, typically 50-70% of cost price, and that facility revolves as you sell and replenish. You draw down to pay your supplier, the goods arrive, you sell them, the cash comes back in, the facility resets. There is no term loan approval to wait on every time you need to place a bulk order.
For wholesalers the product pairs naturally with invoice finance. Stock finance covers the buy side, paying your supplier before the goods move. Invoice finance covers the sell side, releasing cash from your debtor book before your customers pay. Import-led distributors running 60-day supplier terms against 45-day debtor books use this combination a lot, because that gap is exactly what kills cash flow.
The lender who says yes to this is usually a receivables or asset-based lender, not your clearing bank. They want to see a defined, non-perishable stock holding, a credible stock management system, and a trading history that shows the stock turns. Advance rates vary by stock type: finished branded goods attract higher advances than raw materials or bespoke items, because resale value is clearer. As a broker we cannot promise you a specific advance rate before a lender has reviewed your stock composition and ageing profile, and neither can anyone else. What we can do is take your stock profile to the lenders who fund it.
Key Benefits
- Bulk purchase discounts from suppliers become realistic when you are not constrained by free cash. A £500k stock facility can shift your supplier negotiating position materially.
- The facility revolves with your trading, so you are not re-applying each time you restock. That matters when your buying cycle is monthly and a fresh term loan takes six weeks to approve.
- Combining stock finance with invoice finance gives you working capital cover across the full trade cycle, from purchase order to cash receipt, rather than just one end of it.
- Advance rates are based on cost price, not sale price, so the lender looks at the value you actually paid for the goods. Knowing this upfront helps you size the facility correctly rather than expecting a number the lender will not support.
Frequently Asked Questions
How is wholesale stock valued for the facility?
At cost price, not your selling price. The lender or an appointed valuer will review your stock composition, ageing, and turnover rate. Slow-moving or obsolete lines are usually excluded or attract a lower advance rate. Expect to provide a detailed stock schedule at drawdown and on a rolling basis.
Can I finance goods that are still in transit?
Some lenders will include goods in transit within the facility provided they are insured and the shipping documentation is in order (bill of lading, airway bill, delivery note). Clarify this early if you are importing, because not every stock finance provider will go there.
What types of stock are eligible?
Non-perishable, identifiable, saleable goods work best. Finished consumer goods, branded products, and industrial components are typical. Perishables, bespoke or made-to-order items, and hazardous materials are usually excluded or attract a much lower advance rate, sometimes zero.
How often will the lender audit my stock?
Quarterly is common for smaller facilities. Larger facilities or those with a more complex stock mix tend to require monthly reporting, and some lenders integrate directly with warehouse management systems to monitor levels in real time. This is part of the ongoing relationship, not a one-off exercise.
Related Funding Options
Invoice Finance for Wholesalers
Wholesale businesses sell on trade credit and wait 30-90 days while the stock cost sits on your books. Invoice finance for UK wholesalers releases that cash within 24 hours of raising an invoice.
Trade Finance for Wholesalers
UK wholesale distributors pay overseas suppliers on shipment but collect from customers 60 to 120 days later. We place trade finance that funds the purchase order and recovers when you get paid.
Unsecured Business Loans for Wholesalers
UK wholesale businesses can borrow £10k to £300k unsecured to fund bulk stock purchases, new product lines, or warehouse capacity. No property charge required. We place these regularly.
Stock Finance UK: Inventory-Backed Working Capital
Stock finance advances 50 to 70% against inventory at cost, revolving as you sell and restock. We place these facilities for UK limited companies, from £25k.
Business finance by location
Lender appetite varies by city and region. If you would rather start from where your business is based, these local guides cover the same funding with the local picture.
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Get matched with lendersCoreFi 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.