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Retailers today face numerous challenges that can stretch their resilience to the limit. These include managing cash flow, aligning with consumer preferences, and maintaining adequate inventory levels. All these demand upfront costs that can lock up precious company resources. Sales’ volatile nature and unpredictable economic conditions can complicate financial forecasting further. In such a scenario, inventory financing offers a viable solution that allows inventory-heavy retailers to efficiently manage their stocks without straining their finances.

What is inventory financing?

Inventory financing involves using your current inventory as collateral to access additional funds to invest in more inventory. This way, you can stock your shelves consistently without depleting your cash reserves. As a result, your cash flow is freed up for other vital aspects of your business. 

You might wonder if retail inventory financing is different from wholesale inventory financing. While both serve the purpose of funding inventory purchases, the latter typically caters to wholesalers or distributors buying in bulk to supply retailers. The nuances lie in the scale and the inventory’s final destination, but the basic idea remains the same: leveraging future sales for additional funds today. 

2 categories of inventory financing

This financial arrangement can be broken down into traditional and alternative inventory financing options. Both categories allow businesses to manage stock levels without freezing up operational funds.

Traditional inventory financing

In the traditional model, a retailer applies for a loan, typically at a bank, with the inventory as collateral. This option fits well for businesses with a reliable stock turnover, as they can repay the loan with proceeds from sold inventory. Interest rates and terms are set upfront, which might be challenging during slow sales or when collections are delayed. Key considerations include:

  1. Loan amount – The loan amount is typically around 50% to 80% of the inventory’s  

resale value. 

  1. Interest rates – Banks typically set interest rates upfront. These rates vary but usually range from 3% to 9%. 
  2. Repayment terms – Repayment terms are typically structured, often set over longer periods with fixed installments that businesses need to factor into their budget. 
  3. Eligibility and application process – Banks typically require a good credit score and a solid business history, which might be tough for retail startups and small businesses. Another disadvantage is that the application and approval process is usually lengthy and tedious. This can be a problem if you need quick access to funds. 

Alternative inventory financing

On the other hand, fintechs like Kickfurther and other alternative financing companies offer innovative inventory financing, like credit cards, lines of credit, and inventory funding. This method suits retailers looking for adaptable financing to match inventory turnover or seize unexpected opportunities without being constrained by rigid loan terms and conditions. Before you apply for any alternative inventory financing, do your due diligence and assess these factors: 

  1. Fund amount – Certain types of alternative inventory financing, such as inventory funding, can cover up to 100% of the inventory’s liquidation value. 
  2. Interest rates – Rates for alternative financing companies can range widely from 8% to as much as 99% in extreme cases. However, the cutting-edge inventory funding company Kickfurther offers retail store funding for as low as 1% a month. 
  3. Repayment terms – Repayment terms for alternative inventory financing are more flexible as they can be suited for ongoing capital needs or large, one-off purchases. 
  4. Eligibility and application process – Because it doesn’t emphasize credit scores, it’s easier to obtain even for retailers without traditional loan qualifications. Processing times are also faster, with many fintechs offering quick online applications.

The benefits of inventory financing 

Retail inventory financing offers these compelling advantages that can support your retail business’s growth and stability: 

Enhanced liquidity 

Inventory financing for retailers preserves cash reserves by providing working capital for inventory maintenance and expansion. This is particularly beneficial during peak sales periods when you must stock up to meet increased demand. By leveraging inventory for financing, you can keep your operations running smoothly without cash flow disruptions that can happen with traditional loan models.

Growth and investment opportunities

By releasing capital that would otherwise be stuck in inventory, you can invest in marketing, expansion, and other growth-oriented initiatives. Inventory financing for startups and small retailers is particularly advantageous because it enhances cash flow leverage. With the extra funds, they can seize new market opportunities, expand product lines, and enhance their competitive position.

Improved access to capital

Because the additional funds are backed by the inventory itself, financing companies are enticed to do business with retailers who might not qualify for unsecured loans. This levels the playing field by providing more opportunities for retailers of all sizes and financial positions to access the capital they need. 

Who can benefit from retail inventory financing?

These are just some of the businesses that can fully leverage the strategic power of inventory financing for retailers:

  • Seasonal Retailers like holiday decorations outlets that usually prepare for the high season
  • Fashion Retailers that need to stay current with rapidly changing trends
  • Electronics Shops that want to offer the latest gadgets before their competitors do
  • Specialty stores that regularly secure seasonal or gourmet food items
  • Automotive Parts Retailers who keep a diverse stock for various vehicle models
  • Furniture and Home Decor Outlets that typically invest in large, costly inventory pieces
  • Ecommerce businesses updating their offerings to keep up with the global market

From seasonal shops to ecommerce platforms, inventory financing is a strategic asset for various businesses. But to secure the robust financial support and flexibility to succeed in the competitive retail environment, you need the right inventory financing partner. And that’s where Kickfurther comes in.  

Why Kickfurther?

Kickfurther isn’t your typical inventory financing. With us, you can experience a more growth-focused approach to retail inventory financing. Here are the advantages of partnering with us: 

  • No immediate repayments – Do not pay until your product sells. Other providers may debit your account daily as part of a repayment schedule, and loans require repayment before your sales cycle has even begun. With Kickfurther, you set your repayment schedule based on what works best for your cash flow.
  • Non-dilutive – We do not require equity in your retail business to access inventory funding.
  • Not a debt – This is not a loan, so it does not put debt on your books, which can sometimes further constrain your working capital/access to capital and lower VC valuation.
  • Immediate access to capital – When your payments are due, you need ready capital. Kickfurther can fund your entire order(s) each time you need more inventory.


Kickfurther puts you in control of your business while delivering the costliest asset for most brands. By funding your largest expense (inventory), we help you free up existing capital to grow your retail business wherever you need it—product development, advertising, adding headcount, and more.

Don’t let the usual constraints of traditional inventory financing hold you back. Secure the flexible funding you need with Kickfurther with these easy steps:  

  1. Create a free business account.
  2. Complete the online application. 
  3. Review a potential deal with one of our account reps to get funded in minutes.

For streamlined and responsive retail inventory financing that drives growth, join Kickfurther. Get started today and take your business to the next level!

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