Unsecured business loan · Stock and inventory finance
Unsecured business loan for Stock and inventory finance
Stock and inventory finance is funding used to buy goods for resale ahead of the season or contract that will sell them, repaid from the sales proceeds rather than from existing working capital.
How an unsecured business loan works for Stock and inventory finance
A term loan suits a single, defined seasonal buy: the Christmas order placed in August and repaid across December and January. You can size it precisely against your own forecast and see exactly what it costs. The discipline it imposes — a fixed repayment schedule — is useful, because it forces the stock to be sold rather than sitting. Test the repayment against a season that underperforms by twenty per cent, not against the one you are hoping for.
The cash-flow pattern we plan around
Cash committed to inventory two to four months before the selling season, with proceeds arriving across the season itself and slow-moving lines tying up capital longer.
What stock and inventory finance typically fund
- Seasonal stock ahead of a peak trading period
- Supplier deposits and shipment balances on imports
- Volume buys to secure a better unit price
- Inventory for a new contract or product line
Unsecured business loan for Stock and inventory finance: the numbers
| Typical amounts | $5,000 – $500,000 |
|---|---|
| Term | 3–36 months |
| Indicative rates | 9.9% – 29.5% p.a. |
| Repayments | Daily, weekly or monthly |
| Speed | 24–72 hours after documents are received |
| Documents stock and inventory finance usually need | ABN, GST registration and 6–12 months of bank statements · Purchase orders or supplier proforma invoices · Stock turn and sales history for the relevant lines |
Rates are indicative, change without notice and depend on the lender, product, asset, term and your credit profile at the time of application. They are not an offer of finance. Comparison rates, where shown, are true only for the example given.
Key terms
Inventory finance
Inventory finance is short-term funding used to purchase goods for resale, repaid as the stock sells, and sized against expected sell-through rather than against the total value a supplier is willing to ship.
Stock turn
Stock turn is how many times inventory is sold and replaced over a period, and it determines how long a finance facility must run before the goods it funded have generated the cash to repay it.
What is an unsecured business loan?
An unsecured business loan is finance provided to a business without a specific asset held as security. Approval is based on trading history, bank statements and cash flow. Most lenders still require a personal or director’s guarantee.
How is an unsecured business loan repaid?
Repayments are usually daily, weekly or monthly direct debits over 3 to 36 months. Some lenders quote a factor rate (total payable ÷ amount borrowed) rather than an annual interest rate, so always compare the total cost.
Who is eligible for an unsecured business loan in Australia?
Typical minimums are an active ABN, 6 to 12 months of trading and monthly turnover above roughly $10,000, but each lender sets its own criteria. Lyft Money checks fit across the panel before anything is submitted.
Questions from stock and inventory finance
How does trade finance work for buying stock?
The lender pays your supplier, local or overseas, and you repay the lender 90 to 180 days later from the sales of that stock. It is revolving, so each purchase is its own transaction, and it suits importers and wholesalers with margins that cover the cost. Letters of credit and foreign currency payments can be included.
What is the best way to fund seasonal stock?
Trade finance for supplier payments, a line of credit for deposits and top-ups, and for retailers with strong card sales a merchant cash advance repaid from takings across the season. Applying two to three months before the season starts allows time for the facility to be set up before supplier deposits are due.
Can I borrow against stock I already hold?
Rarely on its own, because stock is hard for lenders to value and sell, but businesses with commercial debtors can use invoice finance to release the cash tied up in the sales cycle, and a general security agreement over the business can support a line of credit. A broker structures the combination.
What do lenders want to see for inventory finance?
Gross margin, stock turn, supplier terms, a sales history for the products and, for trade finance, supplier invoices or pro forma orders. Established importers and wholesalers with consistent sales are approved quickly; new product lines need a sales plan.