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Best Small Business Inventory Loans

An inventory loan is money you borrow to purchase inventory for your business. These reputable lenders offer quick funding and relaxed borrowing requirements so you can replenish your inventory in no time.

    Shannon Vissers
  • Last updated onUpdated

  • Erica Seppala
  • REVIEWED BY

    Erica Seppala

    Editor & Senior Staff Writer

Advertiser Disclosure: Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity.

An inventory loan is money you borrow to purchase items your business will sell. In the case of inventory financing, the inventory you are purchasing is used as collateral to secure the loan. However, you can also use other types of business loans to buy inventory, including unsecured short-term loans and lines of credit.

Whether you need an inventory loan for seasonal business financing or to take advantage of a wholesale bargain, it can be a smart business decision to take out a loan to purchase inventory. Start your search for inventory financing with our picks for the best small business inventory loans.

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  • Offers: Term loans, lines of credit, & merchant cash advances
  • Revenue Requirements: $100K/year
  • Minimum Credit Score: N/A
  • Offers: Term loans, lines of credit, & merchant cash advances
  • Revenue Requirements: $100K/year
  • Minimum Credit Score: N/A

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  • Offers: Business credit cards & merchant cash advances
  • Revenue Requirements: $15K/month ($180K/year)
  • Minimum Credit Score: N/A
  • Offers: Business credit cards & merchant cash advances
  • Revenue Requirements: $15K/month ($180K/year)
  • Minimum Credit Score: N/A

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  • Offers: Business lines of credit & term loans
  • Revenue Requirements: $40K/month ($480K/year)
  • Minimum Credit Score: 625
  • Offers: Business lines of credit & term loans
  • Revenue Requirements: $40K/month ($480K/year)
  • Minimum Credit Score: 625

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  • Offers: Short-term loans & lines of credit
  • Revenue Requirements: $100K/year
  • Minimum Credit Score: 625
  • Offers: Short-term loans & lines of credit
  • Revenue Requirements: $100K/year
  • Minimum Credit Score: 625

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  • Offers: Short-term business loans
  • Revenue Requirements: $33K/year
  • Minimum Credit Score: Undisclosed
  • Offers: Short-term business loans
  • Revenue Requirements: $33K/year
  • Minimum Credit Score: Undisclosed

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  • Offers: Multiple types of business financing from 75+ lenders
  • Revenue Requirements: Depends on financing type
  • Minimum Credit Score: Depends on financing type
  • Offers: Multiple types of business financing from 75+ lenders
  • Revenue Requirements: Depends on financing type
  • Minimum Credit Score: Depends on financing type

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Read more below to learn why we chose these options.

Best Inventory Loans For Small Businesses

The following are some of the best inventory loans and lines of credit for small businesses. These reputable lenders offer quick financing with shorter terms and smaller borrowing amounts, generally starting at around $5,000 — but in some cases offering as much as $500,000 or more. Our top picks include:

How The Best Inventory Loans Compare

Funding TypeMax Borrowing AmountAPRFICO
BusinessLoans.comTerm loans, MCAs, LOCs, STLs$3 millionVariesN/A
Revenued Business CardBusiness credit cards, MCAsUndisclosedFactor rates starting at 1.1N/A
BluevineLines of credit, term loans$250KStarts at 15%625
OnDeckTerm loans, lines of credit$250KStarts at 29.9%625
LoanBuilderShort-term loans$150KUndisclosedUndisclosed
LendioSBA loans, STLs, LOCs, term loansVariesVariesVaries

BusinessLoans.com: Best For Comparing Inventory Financing Lenders

BusinessLoans.com

Total Rating 4.0
Rates & Fees4.6

Services4.0

Eligibility Requirements4.1

Application3.0

Sales & Advertising Transparency3.6

Customer Service4.1

User Reviews4.4



Pros

  • Bad credit-friendly
  • High borrowing amounts
  • Receive multiple loan offers with one application
  • Allows you to compare inventory financing options

Cons

  • Rates not disclosed on website

Why We Chose BusinessLoans.com For Inventory Financing Comparison

BusinessLoans.com is an online lending marketplace that small businesses can use to apply for business financing. Some options offered by BusinessLoans.com partners work well as inventory loans, including short-term loans, lines of credit, and merchant cash advances.

Using this marketplace, you can submit one quick application and receive multiple financing offers. This way, you can comparison shop to choose the best offer to finance your inventory purchase.

BusinessLoans.com Rates & Fees

BusinessLoans.com doesn’t list its rates or fees on its website. Fees vary depending on which partnered lender you receive a loan offer from.

BusinessLoans.com Eligibility Requirements

BusinessLoans.com has no specific borrower requirements, though it recommends that you meet these requirements:

  • Annual revenue of $100,000+
  • Time in business of 6+ months

BusinessLoans.com may still be able to find an offer for you even if you do not meet these minimums.

Choose BusinessLoans.com If...

  • You want to easily compare offers from multiple lenders
  • You want to choose from multiple products for purchasing inventory, including lines of credit and merchant cash advances

Get Started With BusinessLoans.com

Read our in-depth review

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Revenued Business Card: Best For Inventory Loans With No Credit Check

Revenued Business Card


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Annual Fee

$0

Minimum Recommended Credit

N/A

Rewards Rate

3% cash back on eligible purchases

Pros

  • Business credit card comes with credit line for cash advances
  • No credit check to apply
  • Card benefits include $500 welcome offer & 3% cash back
  • Access to cash within 24 hours

Cons

  • High factor rates
  • Doesn’t help you build credit

Why We Chose Revenued For Inventory Loans With No Credit Check

Revenued is a financing option if you need capital to buy inventory but don’t want your credit checked. This fintech lender offers a no-credit-check business credit card tied to your business credit card, as well as a line of credit called a Flex Line that uses your future sales as collateral.

Your credit line grows automatically in line with your business revenue, making Revenued a good option for a business with high sales volume that needs regular access to cash or credit to purchase inventory (or pay other business expenses). It’s also a suitable form of inventory financing for businesses with bad credit.

Revenued Rates & Fees

Revenued credit cards do not carry any fees (though you will need to pay off your balance every month). Cash advances have a factor rate between 1.1 and 1.5.

Revenued Eligibility Requirements

Since Revenued does not check your credit, there is no minimum credit score to apply. However, qualified applicants will need to have:

  • Time in business of 6+ months
  • Revenue of $15,000+/month
  • Average daily business bank account balance of $1,000+

Choose Revenued If...

  • You want inventory financing that doesn’t require a credit check
  • You have a high sales volume that can help you grow your credit line over time

Get Started With Revenued Business Card

Read our in-depth review

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Bluevine: Best Inventory Line Of Credit

Total Rating 3.6
Rates & Fees3.5

Services3.6

Eligibility Requirements3.3

Application4.5

Sales & Advertising Transparency3.4

Customer Service3.4

User Reviews3.4



Pros

  • Same-day funding option
  • No monthly fees
  • Credit line replenishes as you make repayments
  • Monthly repayment option (for qualified applicants)

Cons

  • Qualifications may be hard for some businesses to meet
  • High draw fees

Why We Chose Bluevine For Best Inventory Lines Of Credit

Bluevine is another high-quality online lender offering revolving lines of credit up to $250,000. Bluevine is unparalleled in its convenience and flexibility, and you can potentially qualify and start withdrawing funds within minutes. Once your draw is approved, the funds will hit your bank account within a few hours (if you pay $15 for a bank wire) up to a couple of days. To withdraw more money, simply request funds using the web portal.

Business lines of credit such as Bluevine provide flexible financing for established businesses that experience seasonal revenue fluctuations or want to take advantage of inventory sales as opportunities arise. And if you would prefer a term loan, Bluevine offers those up to $250,000.

Bluevine Rates & Fees

The rates for a Bluevine line of credit are as follows:

  • 0.3%-1.5% per week for 6-month terms
  • 1.5%-6.5% per month for 12-month terms

A draw fee of 1.6% to 2.5% per draw applies.

Bluevine Eligibility Requirements

Bluevine can be a little more difficult to qualify for compared to some online LOCs, but they’re still faster and easier to get compared to a bank LOC.

Bluevine requires:

  • 2+ years in business
  • Monthly revenue of $40,000+
  • Personal credit score of 625

Additionally, you must not operate a business in an ineligible industry, such as firearms, illegal gambling, or controlled substances. Bluevine products are not available to businesses in Nevada, North Dakota, and South Dakota.

Choose Bluevine If...

  • You want a flexible line of credit to draw from as needed
  • You’re an established business with solid monthly revenues that wants a term loan or line of credit to purchase inventory

Get Started With Bluevine

Read our in-depth review

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OnDeck: Best For Same-Day Inventory Loans

Total Rating 3.9
Rates & Fees4.6

Services2.9

Eligibility Requirements3.8

Application4.5

Sales & Advertising Transparency3.8

Customer Service4.1

User Reviews4.0



Pros

  • Same-day funding with STL; instant transfers with LOC
  • Origination fee waived for some repeat customers
  • Builds business credit

Cons

  • Funding not available in all states
  • Origination fee on new loans

Why We Chose OnDeck For Same-Day Inventory Financing

One of the most popular online lenders for small businesses, OnDeck is hard to beat for fast, short-term inventory loans. OnDeck offers both short-term loans and lines of credit, though you can only borrow up to $100,000 with the LOC (term loans can be as large as $250K). OnDeck has no prepayment penalty on LOCs as well as loyalty benefits for returning customers (it’ll waive all remaining interest on your current loan if you apply for a new one, i.e., no double-dipping).

OnDeck’s short term lengths combined with its same-day funding option make these loans perfect for buying quick-turnaround inventory at a discount. And with LOC withdrawals up to $10K, OnDeck offers instant funding, which puts the money in your account within seconds of withdrawing, even on nights and weekends.

OnDeck Rates & Fees

As with other quick online business lenders, OnDeck’s rates can potentially be high, with APRS as high as 98.3% for term loans or 61.9% for lines of credit. With that said, OnDeck is transparent in laying out its terms, and its rates are competitive with other similar online lenders.

An origination fee of up to 5% of the loan amount may apply.

OnDeck Eligibility Requirements

To meet the minimum qualifications for an OnDeck LOC or term loan, you’ll need:

  • Personal credit score of 625
  • Annual revenue of $100,000+
  • 12+ months in business

Choose OnDeck If...

  • You need fast funding — potentially as fast as the same day
  • You want to choose between a line of credit or term loan

Get Started With OnDeck

Read our in-depth review

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LoanBuilder: Best Short-Term Inventory Loans

Total Rating 3.5
Rates & Fees4.1

Services2.9

Eligibility Requirements3.4

Application3.8

Sales & Advertising Transparency3.8

Customer Service2.8

User Reviews4.1



Pros

  • Next-day funding
  • Relaxed borrowing qualifications
  • No origination fee

Cons

  • Fees can be high if you don’t have excellent credit

Why We Chose LoanBuilder For Best Short-Term Inventory Loans

LoanBuilder is an online loan service owned by PayPal (not to be confused with PayPal Working Capital loans, which are available to PayPal sellers only). LoanBuilder offers short-term loans up to $150,000 (although first-time borrowers can only borrow up to $100,000).

LoanBuilder is easy to qualify for, and these loans are also easy to renew once you pay off your current loan. You can also receive funding quickly -- as soon as the next business day after approval.

LoanBuilder Rates & Fees

Unfortunately, LoanBuilder no longer discloses its rates. In the past, LoanBuilder stated that it charged a one-time borrowing fee ranging from 2.9% to 18.72% of the borrowing amount.

LoanBuilder loan term lengths can range from 17 to 52 weeks, and you can customize your borrowing amount and term length to see how that affects your payments and the total cost of the loan.

You’ll also see your loan terms and weekly repayment amounts before you accept the offer.

LoanBuilder Eligibility Requirements

To qualify for a LoanBuilder loan, you must meet the following requirements:

  • 9+ months in business
  • Annual revenue of $33,300+

LoanBuilder does not disclose a minimum credit score requirement.

 

Choose LoanBuilder If...

  • You want a short-term loan that is repaid over a year
  • You’ve been in business less than one year, have a low credit score, or have lower revenue and don’t qualify for funding elsewhere

Get Started With LoanBuilder

Read our in-depth review

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Lendio: Best For SBA Inventory Loans

Total Rating 4.8
Rates & Fees5.0

Services5.0

Eligibility Requirements4.9

Application4.5

Sales & Advertising Transparency4.4

Customer Service4.9

User Reviews4.9



Pros

  • Multiple types of financing available
  • Minimal borrower requirements
  • Streamlined SBA loan application

Cons

  • Takes longer for funds to come through compared to other online lenders

Why We Chose Lendio For Best SBA Inventory Loans

Lendio is an online lending marketplace that matches prospective borrowers with a loan that meets their needs, at no charge to the borrower. As such, it can be a very convenient place to search and apply for an inventory loan online, whether you’re looking for a short-term loan, line of credit, merchant cash advance, or even a bank or SBA loan.

Lendio is a convenient way to apply for SBA loans up to $5 million. These loans boast competitive rates and long repayment terms. For inventory financing, a microloan up to $50,000 is a great choice. Unlike other lenders, Lendio simplifies the SBA loan application process; the initial application for an SBA loan through Lendio should only take about 15 minutes.

Lendio Rates & Fees

Rates and fees vary depending on which Lendio partner you accept a loan offer from, but for SBA microloans specifically, interest rates range from 6-9% with term lengths up to 6 years.

Lendio Eligibility Requirements

Lendio’s borrowing requirements vary by lender and product. To qualify for an SBA loan, you must meet these minimum requirements:

  • 2+ years in business
  • Monthly revenue of $8,000+
  • Personal credit score of 650+

Choose Lendio If...

  • You own an established business and have a good to excellent credit score
  • You’re willing to wait for a long-term, low-interest loan

Get Started With Lendio

Read our in-depth review

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Business Loan & Funding Products Review Methodology

We spend hours researching and evaluating each business loan and funding product that we review at Merchant Maverick, placing special emphasis on key characteristics to generate our ratings.

When rating lenders and funding providers, we use a 31-point rubric that looks at rates and fees, services, eligibility requirements, application, sales and advertising transparency, customer service, and user reviews. We weigh each section differently to calculate the total star rating. This rubric is applied to traditional term loans, as well as short-term loans, start-up loans, lines of credit, online lending products, merchant cash advances, and equipment financing products.

  • Rates & Fees: 20% of the total star rating
  • Services: 20% of the total star rating
  • Eligibility Requirements: 20% of the total star rating
  • Application: 15% of the total star rating
  • Sales & Advertising Transparency: 10% of the total star rating
  • Customer Support: 5% of the total star rating
  • User Reviews: 5% of the total star rating

Each section is further broken down into granular, weighted subsections, in which we examine specific attributes like terms lengths, conditions of repayment, credit score and revenue requirements, ease of application, length of time to funding, the ethics involved in promoting the lending product, customer support, and the overall reputation of the lender or funding provider.

Read more about how we rate small business lenders.

What To Look For In An Inventory Loan

If you need a loan to purchase inventory, it’s tempting to quickly accept a loan so you can restock ASAP. However, you should look for a few key things before signing a loan contract.

It’s possible you won’t need a loan with all of these qualities, but generally, small businesses should choose inventory financing lenders with the following characteristics:

Quick Time-To-Funding

When you need an inventory loan, you usually don’t have a lot of time to act. This is especially true if you need to replenish near-depleted supplies, or you have been presented with a time-sensitive offer to purchase products at a discount.

Though bank loans have a longer time-to-funding (a month or longer), you can typically receive funding from an online lender in less than a week, and sometimes as quickly as a day or two.

Short Term Length

Usually, businesses need to turn around inventory pretty quickly. For that reason, it doesn’t make sense to take out a long-term loan to purchase inventory — you don’t want to be paying off three months’ worth of product five years from now. As a rule of thumb, it’s ideal if the inventory loan’s term (the amount of time you have to pay it off) is roughly the same as the amount of time it’ll take to sell the inventory.

Short-term loans (STL) and short-term lines of credit (LOC) are well-suited for inventory purchases. These lending products usually have term lengths of less than a year, and sometimes as short as one month. Short-term financing can have a high APR, but because you’re paying on the loan for such a short period, you may still pay less for the loan than you would for a long-term loan.

Easy To Renew

If you need a loan for inventory now, there’s a good chance you will need another in the future. Some lenders offer short-term loans that are easy to renew in case you need to take out another loan. In some cases, they’ll even offer a discount for repeat borrowers.

However, some short-term lenders do something called double-dipping, which is when a lender charges you interest on your old loan and your new loan at the same time. This is something you’ll want to avoid.

If you opt for a revolving line of credit, it’s even easier to get additional funds for future inventory purchases, since available funds are automatically replenished as you pay off the money you’ve borrowed. This makes lines of credit especially well-suited for buying inventory. However, some LOC lenders charge a prepayment penalty if you pay off the loan early, so that’s something else to watch out for.

Fair, Transparent Rates & Terms

Whenever you’re considering an inventory loan, you need to understand the terms and costs involved. Also, make sure the interest rate and any other fees charged are competitive. Some lenders are more transparent about their rates and loan terms than others. Generally, the more information the lender discloses on its website, the better.

You can use our short-term loan calculator to determine how much you’ll pay for your loan.

Are There SBA Loans For Inventory?

SBA loans for inventory generally have the advantage of a lower APR when compared to alternative/online lenders and are offered in larger amounts, up to several million dollars.

Although most businesses looking for an inventory loan will be best served by a short-term financing product such as an STL or LOC — which are almost exclusively offered by alternative lenders — you might try applying for an SBA loan if you have an established business (2-3 years) and can wait a little longer for the money to come through.

One appropriate type of SBA loan for purchasing inventory is an SBA microloan. These are smaller loans offered up to $50K. Another is a Seasonal CAPline, a type of SBA 7(a) loan solely for financing seasonal increases of accounts receivable and inventory.

The Bottom Line On Inventory Financing Loans

Compared to a standard business loan, inventory financing is more expensive but is usually easier to obtain, as long as you have a larger, established business and your inventory is selling quickly. You do not necessarily need to have good credit, but you will need to demonstrate a strong sales record that indicates you will be able to easily sell the inventory you are purchasing.

Don’t forget that you also don’t have to specifically use an inventory financing loan. Small business loans and lines of credit — like those listed in this article — can also be used to purchase inventory.

Take the time to educate yourself about inventory financing and compare your options before committing to a loan. If you don’t find a match on this list, check out our other picks for the best small business loans for more great funding options.

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Shannon Vissers

Shannon Vissers

Lead Staff Writer at Merchant Maverick
Shannon has been writing for Merchant Maverick about small business software and financing since 2015. She started writing professionally about business topics in 2005. Shannon has been featured in the Washington Post, Reader's Digest, US News, MSN, Yahoo Finance, Business Insider, and other publications. She has a bachelor's degree in English from San Diego State University and currently resides in San Diego, California.
Shannon Vissers
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