Stock and inventory finance that fills the shelves before the rush

What is stock and inventory finance?

Stock and inventory finance is funding that pays for the goods a business buys to resell. Instead of covering every purchase from the cash in your account, a lender advances money for the stock, and the stock (often along with other assets) backs the loan. You repay as the goods sell.

The idea is simple, but the timing problem it solves is real. A shop buys winter ranges months before the first cold morning. A wholesaler pays suppliers on delivery but waits weeks to be paid by trade customers. An importer commits to a container long before it clears the wharf. In each case the money goes out early and comes back late. Stock finance covers the gap.

Who uses stock finance?

• Retailers preparing for Christmas, back-to-school, the end of financial year or a seasonal peak
• Wholesalers and distributors holding large ranges for trade customers
• Importers buying in bulk to get better supplier terms
• Online sellers scaling up a product that is selling faster than expected
• Builders’ merchants, hardware suppliers and rural suppliers carrying heavy, slow-moving lines
• Businesses launching a new product line or opening a second location

If your business sells goods and the main cash drain is buying them, this is the family of products to look at. If your pain point is customers paying late rather than buying stock, see invoice finance or debtor finance instead.

What do lenders look at when funding stock?

Lenders want to know whether the stock will turn into cash, and how reliably. Typical questions include:

• What the stock is. Durable, standard goods with a ready resale market are generally easier to fund than fashion-sensitive, perishable or highly specialised lines.
• How fast it sells. Stock turnover shows how long money is tied up. Slow movers mean more risk.
• Margins. Healthy margins give room to repay, even if some stock is discounted.
• Your trading history. Sales records, BAS lodgements and bank statements demonstrate the pattern. Our guide on BAS and financial statements shows what to gather.
• Existing security interests. Other lenders may already hold security over your business assets. Lenders often check the Personal Property Securities Register, run by the Australian Government, to see what is registered.
• Other security. Where stock alone is not enough, property or equipment may be offered as well.

Common stock finance structures

Structure	How it works	Often suits
Single stock loan	One advance for a defined purchase, repaid over a set term	A one-off bulk buy or new range
Revolving facility	A limit you draw on and repay as stock is bought and sold	Ongoing retailers and wholesalers
Floor-plan style funding	Each item financed and repaid when that item sells	High-value items such as vehicles, boats or machinery stock
Property-secured funding	Stock bought with a loan secured over real estate	Businesses with equity but thin trading history
Trade-supplier arrangements	Payment to the supplier is arranged or deferred	Importers and regular repeat buyers

Not every lender offers every structure, and what is available depends on your business and security. That is where a broker earns their keep.

How does Ownright approach stock finance?

Ownright Custom Finance is built around solutions. Trevor Scott has more than 40 years in finance, and the team works across commercial, asset, private and property lending, so we are not limited to one product. If a bank has declined your stock facility because the goods are hard to value or the trading history is short, we look at other doors: specialist trade lenders, asset-based arrangements, or property-secured options such as a secured business loan or a second mortgage.

We ask about your sales cycle first and the facility second. A seasonal retailer needs a different shape of funding to a wholesaler with steady monthly orders. Matching the repayment pattern to the way money actually moves through the business is often the difference between finance that helps and finance that squeezes.

We arrange stock finance Australia-wide, from capital-city warehouses to regional rural suppliers.

An illustration

Illustrative scenario only, no real names. A homewares retailer has had a strong year and wants to import a larger range for the Christmas trade. The supplier needs payment up front, but most of the retailer’s cash is tied up in current stock and tax obligations. A bank facility is unavailable because the business has only traded for a short time. We look at the sales records, the supplier terms and the security available, and discuss two routes: a short stock loan paid back as the range sells, or a property-secured facility using equity in the owner’s home. The right choice depends on the lender, the security and the paperwork. Either way, the goal is to have the stock on the floor in time to sell it.

Mistakes to avoid with stock finance

• Buying too much because the finance is available. Dead stock is the fastest way to turn a helpful facility into a burden.
• Ignoring seasonality. If repayments fall due before the stock sells, cash flow tightens at the worst time.
• Not checking existing security. An earlier lender’s registration can complicate a new facility. Sort it before you apply.
• Leaving it until the supplier deadline. Rushed applications limit your choices. See how to get loan ready.
• Mixing up stock and working capital. If you need general breathing room as well as stock, a broader working capital loan may be part of the answer.

What documents should I have ready?

• Recent business bank statements
• BAS lodgements and the latest financial statements, if you have them
• A stock list or summary of what you want to buy, with supplier quotes
• Sales history showing seasonal peaks
• A schedule of existing business debts
• Details of any property or equipment offered as security

Our guide to what documents you need for a loan covers the full list, and we can work from what you have if some items are missing.

What other finance sits alongside stock funding?

Stock funding rarely stands alone. Many businesses pair it with purchase order finance when a customer order is already confirmed, with trade finance for overseas suppliers, or with a business line of credit as a flexible top-up. If your goods are bought overseas, our import finance page explains the extra moving parts.

Ready to fund your next stock order?

Sounds like you’re looking for stock and inventory finance. We’re the lending experts in getting businesses the stock they need, even when the standard doors are closed, so click through and see if you qualify. If you would rather talk first, phone 03 7043 7233.