FINANCE OPTIONS

^Stock Finance for Wholesalers – Apply for Funding Today

Q: What borrowing amounts can wholesalers access with stock finance?

Stock finance for wholesalers is typically structured from about £25,000 up to £1,000,000, depending on eligible stock value and the lender’s advance rate and haircuts. Amounts are also influenced by concentration risk, expected sellability and turnover, the quality and documentation of inventory, and existing debts and security priority.

Q: How long do stock finance decisions take in the UK?

Initial decision timelines are often around 1 to 4 weeks for an initial decision or offer. Some cases may take 2 to 6 weeks for fuller underwriting, particularly where a deeper inventory eligibility review, valuation approach, or repayment capacity assessment is needed.

Q: What interest rates are common for inventory-backed lending?

For UK asset-backed lending, typical pricing is often around 6% to 15% per annum. The range depends on advance rate and eligible stock haircuts, stock type and sellability, leverage and term length, and the borrower’s overall risk profile.

Q: Which stock finance type fits wholesalers best?

Three common options are available: an inventory (stock) advance facility, a stock collateral term loan (inventory-backed), and export/import stock finance (pre-shipment and in-stock). A revolving advance facility suits ongoing replenishment cycles, a term loan can fit defined stock builds with longer repayment certainty, and export/import stock finance aligns funding to trade milestones and shipping timing.

Stock finance for wholesalers is an asset-backed lending approach that releases cash tied up in inventory. For wholesalers, lenders typically advance a proportion of eligible stock value, after eligibility checks, concentration limits and haircuts. The inventory is the key security, with rules around what stock can be included, how it is valued and how it is managed. Businesses use this kind of funding to smooth working-capital pressure, replenish stock without waiting for trade customers’ receipts, and align funding availability with day-to-day stock cycles. It can also be structured to support seasonal builds, import cycles and growth procurement when cash is constrained.

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^Benefits of stock finance for wholesalers

Stock finance is designed to support inventory-driven cashflow needs. It is priced around eligible stock value and the risk of that collateral, and it often works on an ongoing monitoring basis rather than a one-off repayment from the start. Typical annual pricing for UK SME inventory-backed lending is around 6% to 15%, and decision times are commonly 1 to 4 weeks for an initial view.

Unlock working capital from stock

Match funding to stock cycles

Use inventory as security

SCALE YOUR BUSINESS TO NEW HEIGHTS

Types of stock finance for wholesalers

Inventory (stock) advance facility

An inventory advance facility is a revolving style of stock finance. Lenders set an advance rate on eligible stock and monitoring rules then determine how much can be drawn as stock is sold and replenished.

Inventory (stock) advance facility

Inventory (stock) advance facilities are commonly suitable for UK-registered SME wholesalers with trading history. Lenders typically advance against eligible, liquidable inventory value, subject to product eligibility, concentration limits and haircuts. Terms are often structured as a facility from around £25,000 up to £500,000+ depending on the business and stock mix. The term is commonly set between 12 and 36 months, with availability changing based on ongoing stock eligibility and periodic reviews.

Stock collateral term loan (inventory-backed)

An inventory-backed term loan provides scheduled repayment supported by eligible stock security. It is often chosen when you want longer certainty for a defined stock purchase or sales ramp.

Stock collateral term loan (inventory-backed)

Stock collateral term loans (inventory-backed) can be used when inventory movement is predictable and the business has debt-servicing capacity. Typical amounts range from about £50,000 to £1,000,000+ for SMEs, influenced by the quality of stock and security coverage. Lending terms are commonly 18 to 60 months, with amortisation schedules often monthly. Interest may be fixed or floating, with UK ranges often around 7% to 14% per annum depending on leverage, security and repayment term.

Export/import stock finance (pre-shipment and in-stock)

For cross-border trading, export/import stock finance links lending to trade milestones. It can help bridge cash gaps caused by shipping and customs timing between buying stock and selling it.

Export/import stock finance (pre-shipment and in-stock)

Export/import stock finance (pre-shipment and in-stock) is designed for wholesalers importing goods or supplying overseas buyers. It is sized around trade cycles and eligible stock, and can typically range from about £30,000 to £750,000+. Terms are often aligned to trade cycles, commonly 6 to 24 months, and drawdowns may be structured around agreed milestones such as goods received into inventory. Pricing often sits within a similar SME range to other stock-backed lending, roughly 6% to 15% per annum, with additional cost drivers tied to perceived volatility and documentation complexity.

Typical Funding Journeys on Funding Agent

Submit your funding request

Our platform enriches your application using business data

Your request is matched to suitable lenders

Receive offers and proceed with the best option

How Funding Agent helps you get stock finance

Tell us your stock needs

Share your business details, how you buy and store inventory, and what you want to fund such as replenishment builds, seasonal stock or an import cycle. The more clarity you provide on stock categories and stock control, the easier it is to match options.

We match you to lenders

Funding Agent reviews your suitability for stock-backed lending and helps line up the information lenders typically require. That includes the stock and reporting capability needed to assess eligible value, plus the financial information that supports credit risk and affordability.

Complete checks and set up

After you receive terms, you complete KYC/AML and required documentation. The facility then follows the lender’s stock monitoring rules and drawdown mechanics, which can include reporting and controls depending on the structure and eligible inventory requirements.