Inventory Funding is credit obtained by businesses to pay upfront for products that will not be sold immediately. The loan is collateralized by the inventory it is used to purchase. Inventory Funding is most often used by smaller privately-owned businesses that don't have access to other options

If your inventory is selling well and you are in need of more money to keep selling, you may want to consider inventory financing. If your inventory is out of date or not selling (you have slow turnover), it may not be wise to attempt inventory financing, because you may not find a willing lender.