Business Loan Broker > Asset Finance > Stock & Inventory Finance

Stock and Inventory Finance

FinCred CF is a broker of stock and inventory finance. Find out from the experts what stock and inventory finance is in simple terms. 

If you are looking to purchase stock and inventory finance, learn how we operate below or contact us now.

What is Stock and Inventory Finance?

There is a time between purchasing stock and selling your product where your business has products of significant value sitting in a stockroom or warehouse, awaiting sales.

The benefit of stock/inventory finance is to release a percentage of the value of the goods awaiting sale as cash, which is made immediately available to your business. This can allow you to further improve your company’s cash flow position by accessing and utilising money prior to the sale of your stock. 

A percentage of the value of the stock, usually up to about 60%, can be financed. Regular stock appraisals are performed by the finance provider to ensure consistency in the financial value to stock value ratio. Once the stock is sold, the finance company is repaid the amount that has been financed. 

Stock and inventory finance operates as an extension of an invoice finance facility to ensure the stock finance can be repaid through the financing of the invoices.

stock and inventory in warehouse

What Types of Stock and Inventory can be Financed?

Inventory doesn’t just mean finished goods. It could also mean materials used to manufacture products. It could also be “works in progress”, as well as packaging materials. 

It could mean products that have been brought to be sold as soon as possible, or it could be a stock of items saved for a later purpose. 

“Inventory” and “stock” encompass a wide range of business assets.

Is Stock and Inventory Finance Suitable for my Business?


If you trade with other businesses and hold your product in a warehouse awaiting sale, the cash flow benefits of stock finance can prove a worthwhile business decision. Stock finance and inventory finance is a fantastic facility for releasing cash against stock as security.

You should ask yourself if the stock you hold is suitable for financing. For example:

  • Highly perishable goods such as fresh fruit are more difficult to finance and attract lower finance to value percentage.
  • Goods with a longer shelf-life and that are not as susceptible to damage can allow you to release a higher percentage of cash against the value of the stock. 
  • If the majority are perishable goods, are highly seasonal (such as Christmas goods), or are at risk of becoming obsolete very quickly (retail fashion), this will impact the ability to finance a higher percentage of the saleable value of the stock. 

All stock can be considered for financing and if you are in doubt as to whether your business is eligible, speak to us.

Am I Eligible for Stock and Inventory Finance?

Stock and inventory finance is not available for all businesses. You must sell a physical product to other businesses and the finance facility will normally operate as an extension of your invoice discounting or factoring agreement.

How Much does Stock and Inventory Finance Cost?

The cost of stock and inventory finance is dependent on a number of factors. These include the type of stock you hold, the stock’s shelf-life, risk of damaged and unsellable stock, the ability of the funder to sell the stock in the event of your insolvency, and your unsecured creditors. 

After taking these factors, amongst others, into account, the stock and inventory funder will determine your eligibility, the percentage of funding available, and the interest rate on the finance.

Working with FinCred CF, Your Broker for Stock and Inventory Finance

There are a wide variety of options available for stock finance and inventory finance, and it can be hard to know what solution is best for your business. FinCred CF is an experienced broker in this area, and because we have your best interests at heart we will guide you through the process and provide all the advice you need. 

We make funding easy for clients small and large. When you are ready to find a stock finance agreement, or if you just want to learn more, contact us

We work in partnership with our sister company FinCred IS. With their specialist trade credit insurance expertise, they can offer trade credit insurance policies that complement your stock and inventory finance agreement.

UK Wide Industry Statistics

Total value off all sales financed in the UK - £bn

Domestic invoice discounting - £bn

Total number of asset based lending clients

Domestic invoice discounting clients

Please Get In Touch

If you wish to speak to a broker in stock and inventory financing please fill out the form on the ‘Contact Us’ page by clicking the button below.