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Stock finance

Stock finance broker

Growth Business Finance arranges stock finance for UK wholesalers, retailers, importers, manufacturers and online brands: stock lines at up to 90% of net orderly liquidation value within asset based lending, revenue-based stock finance at up to 4x monthly revenue, and trade finance to pay suppliers.

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No credit search and no upfront fee.

Reviewed by Tom Renshaw, Managing Director. Updated .

of stock NOLV within ABL
Up to 90%of stock NOLV within ABL
monthly revenue for online brands
Up to 4xmonthly revenue for online brands
of supplier cost on trade finance
Up to 100%of supplier cost on trade finance
whole of market
650+ lenderswhole of market

What is stock finance?

Stock finance is funding secured against inventory, or sized on the sales that inventory produces. It releases cash tied up in goods you hold or are about to buy, and is repaid as the stock sells. It is used mainly by wholesalers, distributors, retailers, importers, manufacturers and e-commerce brands.

There are three main routes, and many businesses use more than one: a stock line within an asset based lending facility, revenue-based stock finance for online brands, and trade finance to pay suppliers before the goods arrive.

The three main routes

Stock within asset based lending: for businesses raising £2m or more, stock is funded at up to 90% of net orderly liquidation value (NOLV), set by an independent appraisal, alongside debtors, plant and property in one revolving facility. See asset based lending.

Revenue-based stock finance: for e-commerce and D2C brands, funding sized at up to 4x monthly revenue, with no stock appraisal, repaid from sales as the stock sells through. See e-commerce funding.

Trade finance: pays suppliers up to 100% of the cost of goods, with up to 180 days to repay once the goods sell. See trade finance.

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Tell us what you need and we will search 650+ lenders for indicative terms, with no upfront fee.

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Stock finance

How it works

  1. 1

    We look at your stock

    What you hold, how quickly it turns and where it is kept.

  2. 2

    We choose the route

    ABL, revenue-based stock finance, trade finance or a combination.

  3. 3

    Stock is valued

    By an independent appraisal for ABL, or from your sales data for revenue-based lending.

  4. 4

    The facility goes live

    Funding grows as stock and sales grow.

  5. 5

    You repay as stock sells

    From sales receipts, or by rolling into invoice finance as you invoice.

Who it suits

What lenders look at

Stock type
Finished goods, raw materials or work in progress, and how saleable each is.
Stock turn
How quickly stock sells and how much is slow-moving or obsolete.
Stock reporting
Reliable stock systems and regular reports.
Margins
Enough margin to carry the cost of the facility.
Sales data
For online brands, monthly revenue history and channel mix.
Location and title
Where stock is held and who owns it, including goods in transit.
At a glance

Typical terms

Typical terms
Stock within ABLUp to 90% of net orderly liquidation value, facilities from £2m to £100m
Revenue-based stock financeUp to 4x monthly revenue, with no stock appraisal
Trade financeUp to 100% of supplier cost, up to 180 days
RepaymentFrom sales as the stock sells through
StructureRevolving, growing with stock and sales
PricingPriced on the stock, the route and the business

All figures are "up to" and subject to status and lender approval.

Our process

How GBF runs the process

We start with your stock reports, sales data, margins and accounts, and work out which route raises the most: a stock line inside asset based lending, revenue-based stock finance, trade finance, or a combination. We prepare the credit case, approach the lenders that fund your type of stock, compare advance rates and pricing side by side, and manage appraisals and onboarding through to the first drawdown.

  • One senior adviser from first call to completion
  • A credit paper lenders take seriously
  • Indicative terms compared side by side
  • £0 upfront fee
Related facilities

Related facilities we arrange

Asset based lendingStock, debtors, plant and property in one facilityTrade financePay suppliers upfront and repay when the goods sellWorking capital financeEvery way to fund the cash cycleE-commerce fundingRevenue-based stock finance for online brandsStock finance guideA fuller explainer for retailers and wholesalers
FAQs

Stock finance: common questions

How much can I borrow against stock?

Within asset based lending, stock can be funded at up to 90% of its net orderly liquidation value. Revenue-based stock finance for online brands goes up to 4x monthly revenue.

What is net orderly liquidation value?

What the stock would fetch in an orderly sale, as assessed by an independent appraiser. It is usually lower than cost, so the advance is a share of that value.

Can e-commerce brands get stock finance without an appraisal?

Yes. Revenue-based stock finance is sized on monthly sales, up to 4x monthly revenue, with no stock appraisal, and repaid as the stock sells.

Is stock finance better than a business loan?

For businesses with a lot of cash in stock, usually yes. Stock finance grows with the inventory and is repaid as it sells, while a term loan is a fixed amount repaid on a schedule.

Can stock finance work with invoice finance?

Yes. Asset based lending combines stock and debtors in one facility, and trade finance can roll into invoice finance once the goods are sold and invoiced.

Is GBF a lender?

No. Growth Business Finance is a commercial finance broker and debt adviser. Finance is subject to status and lender approval.

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