Supplier Inventory Financing

Do you sell a physical product with sales over $150,000?

A supplier is a person or organization that provides products or services which are typically sold wholesale. If the company offers a product that’s in demand, they can end up with a very lucrative business on their hands.

But to be a successful supplier, you will need to get inventory and a space to work out of as well as hire a staff. These are all expenses that can add up and not everyone has the money to cover these costs. Supplier financing may be necessary.

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1000+

Deals Funded

$200M+

In Inventory Funding

99.5%

Funding Success

How much funding could your company raise?

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US Entity/Owner?
$2,500,000
$2500000
$0$20000000

Why choose Kickfurther for Supplier Financing?

Don’t pay until
you sell.


Your payment obligation only begins once your sales are made. This alleviates the cash-flow pinch that lenders cause without customized repayment schedules. Free up capital to invest in scaling your business without impeding your ability to maintain inventory

30% cheaper
funding.


Know your rates. When you compare ours, you’ll often see that you’re saving. We cost less than factoring, PO financing, and many lenders. We also have higher limits than competitors.

Fund up to $1 million
in an hour.


Once approved and the deal goes live, most deals fund within a day (often within minutes to hours), so you’ll never miss another growth opportunity.

It’s easy, it works, &
it grows with you.


Companies access higher funding limits and often get lower rates as they return to Kickfurther, creating a scalable solution that grows alongside your company.

“Tough Times Call For Creative Funding — Check Out
Kickfurther’s Clever Model”

Join 800+ Kickfurther success stories

Supplier Financing Options

Supplier Financing

What is supplier financing?

Supplier financing is a loan that is used to cover supplier business expenses. Some loans can be used for general expenses while others must be used for specific expenses. In most cases, the money will need to be repaid with interest. As a supplier, you will need to stock plenty of inventory, which can be costly. Inventory funding may be a cost-effective way to fund inventory without interrupting cash flow. 

How does supplier financing work?

The specifics on how supplier financing works depends on the type of loan you use. The lender or partner can dictate exactly how the financing or funding works as well. However, in general, the first step will be to apply or create a profile or account. Next, you will need to wait for approval. Traditional financing may have long approval and waiting times and may require a lot of documentation. It’s very possible that funding from backers can get you the funds you need faster and cheaper. However, the funds may only be used for certain expenses whereas a traditional business loan can be used for any business expense. Repayment schedules can vary. Since monthly payments and budgets are important you will want to choose an option that is affordable.

What are the types of supplier business financing?

Suppliers can choose from several types of financing. Depending on your needs, the type of financing or funding that is best may vary. For example, if you only need funds for inventory, then it may be more cost effective to use an inventory loan or inventory funding. If you need access to a revolving line of credit to improve cash flow and cover a variety of business expenses then a business line of credit may be best. Make sure you educate yourself on available options, determine what you’re most likely to qualify for, and of course, find the best deal. Here are some common types of supplier financing:

Term loans: A type of installment loan that is typically offered by banks, credit unions, and online lenders.

Business line of credit: Similar to a credit card, but with much lower rates. Lines of credit are usually offered by banks, credit unions, and can be accessed online too.

Inventory loans: Inventory loans are intended for purchasing inventory only. Banks may offer inventory loans, but they can be costly. 

Inventory funding: Inventory funding differs from a loan because it’s funded by a buyer rather than a bank or financial institution. Inventory funding can be much cheaper and easier to secure.

Common costs associated with a supplier business

Here are some common costs associated with a supplier business that may require financing:

Warehouse space: Suppliers usually need a workspace to conduct business from or store products.

Equipment: Suppliers may need computers, phones, forklifts, manufacturing equipment, and more.

Inventory: If the supplier accesses their inventory from another party, they may need funding to purchase the inventory.

Staff: The company will need to hire staff for administrative needs, sales, inventory and more.

How inventory financing helps suppliers

Inventory financing provides several benefits for suppliers.

For one, it gives them the funding they need to purchase inventory. This helps them generate the revenue they require to keep their company afloat.

It also does not require a perfect credit score or extensive business history. This makes it a good option for businesses that are just starting out and/or are dealing with financial difficulties.

While inventory financing may cost money, missing out on sales due to a lack of inventory may cost you more money in the long run.

What are the requirements to qualify for supplier financing?

Most lenders will want to see a good credit score and reliable business history.

If your credit score is in the upper 600’s and above, you will be able to qualify for most loans. If your score is in the low 600’s, you may still be able to get funding, especially if you can back your score with a strong business history.

If your score is between 550 and 600, you may be limited to funding options like alternative loans, collateral loans, and merchant cash advances.

If your score is lower than that, you may want to look into other funding options.

In terms of business history, most lenders will want to see that you have been in business for 1- 2 years and that you can bring in an income of $50,000 – $250,000 a year.

To qualify for inventory funding at Kickfurther you need to sell a physical product with sales of $150,000+ over the last 12 months at a minimum.

Additional tips for obtaining supplier financing 

As a supplier, the need for financing may be a recurring theme. Connecting with a lender or funding platform and establishing a good relationship can help you get funding faster and easier. If you go the route of inventory funding, create an online account at Kickfurther that represents your company properly. Investing time into providing potential backers with information and background can pay off.

How Kickfurther can help

Kickfurther can help brands that sell physical products with revenue between $150k to $15mm over the last 12 months. We connect brands to a community of eager buyers who help fund inventory on consignment. Brands can benefit from the flexibility to pay that back as they receive cash from their sales. Kickfurther is the world’s first online inventory financing platform that enables companies to access funds they are unable to acquire through traditional sources. Kickfurther has 800+ opportunities funded totaling $100mm+ and a 99% funding success rate. 

How to apply for supplier financing

At Kickfurther, you can apply for supplier inventory funding in 4 easy steps:

#1. Create your online account

Input business information and upload documentation to get started.

#2. Get funded within minutes to hours

Once approved, our community can fund you within minutes to hours.

#3. Control your payment schedule

Kickfurther pays your manufacturer for inventory. 

#4. Complete and repeat

Once you’ve reached your goal, you can repeat the funding process.

As a business owner, you will be faced with decisions every day. The decision to use financing or funding is a big decision. However, once you figure out the best way to obtain funds, you will realize that it does not have to be complicated or expensive. Financing can help your business grow and become more profitable than you ever imagined. 

Access affordable inventory funding. . . create an online account today!

How does Supplier Financing Work?

Connect with consumers across the United States to get your
inventory funded via our marketplace

Create your online account

Create a business account, upload your business information, and launch your deal

Get funded within minutes to hours

Once approved, our community funds most deals within a day, often within minutes to hours, so you’ll never miss another growth opportunity.

Control your payment schedule

We pay your manufacturer to produce inventory. Make the introduction and you’re off and running! Outline your expected sales periods for customized payment terms. At the end of each sales period, submit sales reports and pay consignment profit to backers for each item sold.

Complete and repeat!

Complete your payment schedule and you’re done! Often once the community knows you, you’re likely to get lower rates on your next raise.

Other Industries

We fund inventory for direct-to-

consumer & major store brands

Where you’ve seen us

FAQs

How does Supplier Financing with Kickfurther work?

Brands can access funding for their inventory from marketplace participants. The marketplace allows brands to access private funding at costs that can improve with each use. Your funding for your purchase order goes directly to your manufacturer for production of goods and you make no payments until you receive and begin selling new inventory.

What are the minimum requirements to qualify for Supplier financing?

Kickfurther works with brands once they’ve reached at least $150,000 or more in trailing 12 months revenue. You do not need to be in business for 12 months, or have revenue in 12 consecutive months, but we review a snapshot of revenue across a period up to 12 months.

As we process your application, we review your account statements to calculate your trailing 12 months of revenue. Kickfurther will consider your revenue to be your net sales, which we define as your business’s gross sales minus its returns, fees, allowances, and discounts.

How can I create a Kickfurther co-op for my brand?

  • Launching a Co-Op for your skin care brand involves 3 key steps:
    • Create a basic profile including information about your business and product line. Once you’ve done this you can go live with an “upcoming Co-Op” profile that users can choose to follow to hear when your Co-Op launches.
    • Determine your Co-Op structure using the Kickfurther calculator to determine costs, earnings, and timeline.
    • Verify your Credibility Metrics with the Kickfurther team and finalize your Co-Op profile.

How fast will I get funded?

Once approved and the deal goes live, most deals fund within a day (often within minutes to hours), so you’ll never miss another growth opportunity