FASHION
ACCESSORIES INDUSTRY
INVENTORY FINANCING

Most lenders will want to see a good credit score and a reliable business history, but other loans can overlook these qualifications while charging higher interest rates to make up for the risk. Some may use inventory and other assets as collateral. The loan will need to be paid back with interest, and there may be fees involved.

In some cases, you may not be working with a lender, but rather backers. Backers can offer more flexible repayment solutions and cheaper borrowing costs — making them an ideal alternative form of clothing finance.

Bank loans can include term loans and lines of credit. Term loans are a lump sum that needs to be paid off over time while lines of credit will allow you to borrow money on an ‘as needed’ basis and pay it back with interest.

Banks will typically require extensive documentation such as financial statements for your business and tax documents. They will also want a good credit score. This can make it difficult to qualify. It also extends the approval process which can range from 1 -2 months.

Bank loans offer interest rates of 5-10% and terms of 1 – 10 years.

The Small Business Administration (SBA) also provides loans to new businesses. They are similar to banks in that they require documentation to show business history as well as a good credit score. However, they are more forgiving of businesses that default on their loans.

Interest rates typically fall between 5 – 10% and terms are 1 – 10 years.

Alternative loans can overlook things like credit score and business history, but the lender may charge higher interest rates to make up for the risk. Because less paperwork is needed, the approval process is faster, and you can get funded in as little as 24 hours.

The loans are typically short-term lasting 1 – 5 years. Interest rates are between 8 – 25%.

Cash advances are based on future revenues. They work like a credit card allowing you to take money out as needed and repay it with interest. They are ideal for companies that have low credit scores, and they allow you to cover expenses in a pinch.

On the downside, cash advances come with a lot of fees. Factor rates are 1.16 – 15 and terms are 4 -21 months.

An inventory loan is ideal for new businesses as it uses inventory as collateral. A good credit score and business history are not always required, but if you default on your loan, you could lose your inventory. 

Try Kickfurther

Provides a cash flow boost

Fashion industry financing gives your company the boost it needs to cover expenses while growing profits.

Maintain equity

Most loans will allow you to access money without losing equity in your business.

Difficult approval process

Most loans require extensive requirements and a long approval process.

High interest rates

Loans come with high interest rates that can compound if they are not paid on schedule.

For fashion accessory and apparel brands seeking flexible clothing finance without the high interest or long approval timelines, Kickfurther offers a unique alternative that aligns payment with your sales cycle.

You don’t pay back until your new inventory starts selling. You set your own repayment schedule based on what works best for your cash flow.

Kickfurther doesn’t take equity in exchange for funding, allowing you to maintain full ownership of your brand.

Unlike traditional debt-based financing, Kickfurther is not a loan and doesn’t appear on your balance sheet as debt. Debt financing can sometimes constrain working capital, reduce access to future capital, or even lower your business’s valuation during investment rounds or a potential sale.

You need capital when supplier payments are due — not weeks later. Kickfurther allows you to fund entire inventory orders quickly and on your terms.

Kickfurther puts you in control while helping you fund the costliest part of your business — inventory. By freeing up capital otherwise tied in purchase orders, you can reinvest in areas like product development, advertising, or team expansion.

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