Best Of
Inventory financing can help your small business purchase products to meet customer demand. Compare inventory lines of credit and term loans.
Inventory financing refers to a line of credit or term loan that a small-business owner uses to purchase products to sell. It can help keep your shelves stocked during a busy season, or allow you to buy products in bulk at a discount.
Lines of credit offer more flexibility than term loans and work best for financing ongoing inventory purchases. You get a set amount of money you can tap into as needed, and you pay back only what you’ve borrowed.
Term loans may have higher borrowing amounts and longer repayment periods, making them a better choice for financing large, one-time inventory purchases.
We’ve rounded up the best inventory loans based on financing type. Always compare small-business loans to find the one that best fits your needs.
Our picks for
Inventory lines of credit
15.00 - 78.00%
600
Pros
Cons
Qualifications:
Our picks for
Inventory loans
6.99 - 24.99%
650
Pros
Cons
Qualifications:
9.00 - 99.00%
600
Pros
Cons
Qualifications:
| Lender | Best For | Est. APR | Min. Credit Score | Next Steps |
|---|---|---|---|---|
BlueVine - Line of credit | Best for Inventory lines of credit | 15.00 - 78.00% | 600 | See Your Loan Options
with Fundera by Nerdwallet |
Credibility Capital - Online term loan | Best for Inventory loans | 6.99 - 24.99% | 650 | See Your Loan Options
with Fundera by Nerdwallet |
OnDeck - Online term loan | Best for Inventory loans | 9.00 - 99.00% | 600 | See Your Loan Options
with Fundera by Nerdwallet |
If you want fast cash: BlueVine provides a line of credit of up to $250,000, and funding can be available within 12 to 24 hours.
If you have small recurring purchases: You may want to consider a business credit card. Your credit limit may be smaller than a line of credit, but advantages include rewards, cash back and an introductory 0% APR period. You can qualify based on your personal credit score even if you don’t have an established business.
If you have strong credit and want competitive rates Online lender Credibility Capital requires a personal credit score starting at 650 to qualify, and you’ll need at least two years in business and a minimum of $200,000 in annual revenue.
If you want quick approval and ease of application: OnDeck’s term loan application takes less than 10 minutes, and loans can be transferred to a business bank account as fast as 24 hours. Its minimum personal credit score requirement of 600 is lower than the one at Credibility Capital.
For a look beyond inventory loans, check out NerdWallet’s small-business loans round-up. We gauged lender trustworthiness, market scope and user experience, among other factors, in making these picks.
To recap our selections...