WIN-WIN CAPITAL FUNDINGBridging Capital • Building Success
Asset-based lending

Inventory Financing

Add your inventory to the borrowing base and unlock cash from the stock on your shelves.

Apply nowAsset-based lending(210) 702-8811
Revolver + termStructure
CollateralFirst
3 – 6 wksTypical close
All 50States
Collateral

How inventory financing works

Inventory is often the largest asset on a distributor's or manufacturer's balance sheet, and one of the hardest to borrow against at a bank. Asset-based lenders appraise inventory at net orderly liquidation value and advance a percentage of it, commonly up to 50–65% of NOLV for finished goods and raw materials.

Paired with receivables, inventory can dramatically increase your total availability and smooth seasonal build-ups.

Best for

  • Distributors and wholesalers
  • Manufacturers carrying raw materials and finished goods
  • Retailers building up for peak season
Questions

Inventory Financing FAQ

What inventory counts?

Finished goods and raw materials are best; work-in-process and slow-moving stock usually count for little or nothing.

Do I need an appraisal?

Yes. Lenders use a third-party inventory appraisal to set the advance rate.

What is asset-based lending?

A revolving line of credit, often paired with term loans, secured by your business assets: accounts receivable, chattel paper, inventory, machinery and equipment, and real estate. Availability is set by a borrowing base that moves with those assets.

How is ABL different from a bank line?

Banks lend mainly on cash flow and covenants. Asset-based lenders lend on collateral, so they can fund companies with losses, uneven earnings, fast growth or a leveraged balance sheet.

What advance rates are typical?

Commonly up to 80–90% of eligible receivables, up to 50–65% of inventory at net orderly liquidation value, and up to 75–85% of equipment at orderly liquidation value, set facility by facility.

Related

Other collateral & uses

Collateral

Accounts Receivable Financing

A revolving line secured by your invoices

Explore →Collateral

Chattel Paper Financing

Borrow against the installment contracts you hold

Explore →Collateral

Machinery & Equipment (M&E) Loans

Term debt against the equipment you own

Explore →Collateral

Real Estate in the Borrowing Base

Owner-occupied property added to your facility

Explore →Use case

Acquisition Financing

Buy a competitor, supplier or customer

Explore →Use case

Turnaround Financing

Capital when the bank says no

Explore →
Discuss your scenario

Rather talk it through first?

Skip the full application. Tell us what you need in a few words and an account executive will call you back with options.

  • No application, no credit pull
  • A real account executive, not a call center
  • Usually a call back within one business day
Prefer to call? (210) 702-8811
Next step

Borrow against your inventory.

Start with the online application; agings and reports can be uploaded right on the page.

Start the application

Commercial financing is arranged through Win-Win Capital Funding's network of banks, equipment lessors and asset-based lenders. Rates, terms, advance rates and amounts depend on credit, time in business, revenue, collateral and the equipment, and all financing is subject to credit approval and documentation. Tax treatment varies; consult your tax advisor. This is not a commitment to lend.