Stock Finance for UK Businesses
Free up capital that’s tied up in your inventory with our stock financing solutions.
With flexible options for up to £1,000,000 in funding, Funding Guru provides personalised solutions to improve your business’ cash flow in days.
- Loans up to £1M
- Trusted by 500+ UK business owners
- Same day decisions
- Bad credit accepted
- Flexible repayment terms
How Can Stock Financing Help My Business?
Stock financing is an attractive option for many businesses as it uses the inventory you already have to unlock potential. Examples of how to use the funding you could get from stock financing:
Increase working capital fast
It’s no secret that having solid cash flow gives your business options. Stock finance can provide consistent, revolving credit to keep the cogs of your business turning.
Cover your pay bills in a slow period
Seasonality is a challenge that every business faces, and covering your outgoings during a lull can be a struggle. Free up capital using your stock to keep you focused on growth.
Fund marketing campaigns
What better way to maximise the value of your stock than to reinvest it in your marketing activities? Drive new customers using the funding you receive from your inventory.
Purchase equipment or new stock
Keeping up with trends and technological advancements can be a struggle when your funds are tied up. Stock finance could be a great option.
What Is Stock Finance?
Stock finance is a type of secured business loan that enables you to use your stock as collateral for a cash loan. The stock could be anything that’s of a high enough value to raise the capital you need.
Let’s say you’re a wine merchant that needs to get through a particularly dry January – stock finance could release the capital that’s sitting in your cellar whilst you get back on your feet.
Stock financing is different to trade finance or invoice finance, as you don’t have to have confirmed purchase orders for this stock. You’re simply using the value of the stock itself as security for the funding.
Our stock finance loans operate as 30 to 90-day revolving credit facilities of up to £100,000, meaning you can borrow until you hit your agreed loan threshold. Once you’ve made a repayment, it’s available for borrowing again.
Want to see how stock finance can work in real scenarios? Read our guide on leveraging stock finance to boost your revenue.
Application Process for Stock Financing
At Funding Guru, we like to keep funding as simple and transparent as possible. Here’s the step-by-step on exactly how our stock finance solutions work:
1. 60 Second Online Application
Prepare your business plan and submit our simple application form
2. Get Funding Descion in 24 hrs
With typical application responses taking less than a day typically, you’re not going to be waiting around to know your options.
3. Approval and Funding
Review your offer, sign the contract, and receive funds within days.
4. Stay Connected
Keep us updated on your stock and access ongoing finance as needed.
How does stock finance work?
Funding Guru stock finance offers a range of loan options for your business of up to £1 million. Let’s look at an example below to see what stock financing looks like in action:
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£100k to £1 Million Credit Limit
All Funding Guru stock finance loans have a credit limit of £100,000 to £1 million. Let’s say you borrow £100,000 - you’d give your business a cash injection to keep it moving during a slow period. -
Repay Your Stock Loan in 30-90 Days
As a short-term funding option, our stock financing gives you up to three months to repay your loan. As with any loan, be sure that you can pay back your loan amount in the given time frame -
On-Demand Credit up to Agreed Amount
The great thing about our stock financing solutions is that once you have started to repay your loan, you’ll have access to more funds as you need them - up to an agreed amount. -
Pay Fee / Interest
At Funding Guru, you’ll never experience hidden fees. You’ll pay the loan fees or interest agreed upon before you signed - giving you complete clarity in your financial decisions.
How Much Can I Borrow with Inventory Finance?
Funding Guru stock loans allow borrowers to typically loan between £100,000 and £1,000,000. As stock financing is a short-term, rolling credit system, once you have started to repay your initial loan amount, you can continue borrowing up to an agreed credit limit.
We don’t like being messed around, so we don’t do it to you. Our stock loans can be agreed within 24 hours and the money can be in your account within a couple of days. It’s that simple.
Like any lender, we charge interest and product fees on our loans. You’ll have full transparency on these from the start and you will not face any hidden charges. We also don’t believe in penalising borrowers for paying back their loans early. If you are able to repay the loan earlier than expected, great! There are no early repayment fees.
Is Stock Finance Right for my Business?
Stock finance is suitable for a wide range of businesses and industries. But businesses with fast turnaround of high-value stock are most likely to thrive using stock finance, as they have the confidence that their products will sell. Let’s have a look at the below example:
- Dave owns a car dealership, and is looking to use a stock finance facility to increase the inventory on his forecourt.
- Dave would use the cars already in his lot as collateral for the loan, and the funding he received would allow him to keep his stock levels high and range of models interesting and competitive. This increases the appeal of the product range and likelihood of sales.
- Dave repays his loan, plus any fees, using the money earned from increased interest in his inventory, and everyone goes away happy.
Stock finance is an ideal solution for companies where invoice finance or factoring isn’t an option and existing suppliers won’t extend sufficient credit.
Founder and CEO, Funding Guru
Thoughts from Matt
“Stock finance is a revolving facility aimed at smaller businesses needing to hold large amounts of stock. It allows you to unlock the value of this stock, allowing you to keep your business on a firm financial footing and invest in more products.
If you have large amounts of stock, talk to us today about how we can help you use it to your advantage.“
What can I buy using stock finance?
There are all sorts of uses for inventory financing – and it’s not just products that can be bought using the money from your loan. However – expanding inventory is one of the most common uses for stock finance (if you hadn’t guessed from the name).
At Funding Guru, we’ve loaned money to car dealerships, antique dealers, wine merchants, watch dealers and all manner of wholesalers. Here are just some examples of products you could buy using stock finance, but any high-value, fast moving product can be suitable:
- Clothing
- Vehicles
- Technology (laptops, smartphones, etc.)
- Furniture
- Art
- Antiques
With stock finance, there’s always the risk of your inventory not selling within the time-frame of your loan. This could leave you in a difficult situation as you’d put your existing inventory at risk. It’s always a good idea to have a plan B for your repayments if the products you invested in don’t sell.
Interest Rates for Secured vs. Unsecured Loans
With stock finance, the risk to the lender can be reduced as the assets in your inventory act as security. So an impeccable credit history isn’t necessarily essential.
At Funding Guru, we take a pragmatic approach to lending – we take vision into account as well as circumstance. If you have CCJs or adverse credit this doesn’t necessarily mean you can’t get funded, so give us a call today and let’s talk.
Advantages and Disadvantages of Stock Finance
As with all lending, you need to understand the good alongside the drawbacks. Check out our summary table below:
| Pros of Stock Finance | Cons of Stock Finance | |
| Access to Finance | Easy access to finance – unlock cash on-demand with a revolving facility. | May be more expensive – higher upfront fees due to stock valuation. |
| Cash Flow Management | Smooths out cash flow – stabilises finances during seasonal lows. | Interest rates may change – variable rates could rise with Bank of England base rate. |
| Spending Flexibility | Flexibility – use the loan however your business needs, from restocking to equipment purchases. | Not suitable for all businesses – only product-based firms with qualifying inventory can apply. |
| Market Responsiveness | Keeps your business competitive – stay current with trends and boost profit margins. | Stock is at risk – if you default, lenders may seize your inventory. |
| Discretion | It’s confidential – borrowing remains private from customers and suppliers. | You need strong financials – healthy accounts improve your chances of approval. |
Why Choose Us
Choosing the right partner for stock finance can make all the difference to your business growth. At Funding Guru, we offer fast, flexible, and transparent stock finance solutions tailored to your needs. With expert support, competitive terms, and a quick turnaround, we’re here to help you unlock the value in your inventory and keep your business moving forward.
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Personalised Solutions:
Funding Guru’s flexible financing options are designed to meet the needs of your business, no matter the pickle you may be in. -
Transparent Approach:
We provide transparency at every step of your financing, so you can make financial decisions with confidence. -
Tangible Success Stories:
You can join a network of successful businesses that have grown with Funding Guru’s expert support and guidance. -
Decades of Knowledge:
We have been in your shoes. With Funding Guru, you have a partner with decades of industry experience, so you can navigate the complexities of business finance with insightful guidance. -
Keeping it Simple and Efficient:
Our no-fuss process makes obtaining business finance quick and efficient, giving you more time to focus on growing your business.
Testimonials
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Is Your Business Ready to Unlock Cash from Stock?
