Compare Inventory finance options

Relying on your cash flow to obtain products from overseas suppliers can cause unnecessary stress. This is where unsecured inventory finance comes in.

Unsecured inventory loans are designed to pay your supplier directly on your behalf, allowing you to meet your financial obligations while keeping your shelves stocked and your business's reputation intact.

How does unsecured inventory finance work?

The "unsecured" part means that you don't need to provide security when applying for funding. Here's how it works:

• The lender pays your supplier
• The supplier ships the goods and you restock your inventory
• You sell your goods and repay the lender

Funding is usually granted with a director's guarantee and, depending on the lender, you can apply for up to $1 million. The repayment period is determined by how long it would take to sell your inventory.

A shorter loan term may mean a higher interest rate, but if it's a small amount, it makes financial sense to repay quickly. Paying interest on a small loan over a longer period will eat away at profits.

What are the benefits?

Here are a few reasons why unsecured inventory finance might be the right fit for your business:

• No security required. You are not required to declare your assets as security when applying for this loan. This is ideal for small businesses who need a quick solution to cash flow issues and don't want to put up property as collateral.
• Ideal for overseas suppliers. Shipping inventory from overseas can mean significant delays, especially if you have to put off paying your supplier. An unsecured inventory loan can expedite shipping, helping to eliminate unnecessary delays.
• Avoid using working capital. You don't have to dig into your working capital to unlock cash flow.
• Enhance your business profile. This solution can also help boost your business profile because you're able to take on bigger orders, which will increase your business capacity and maximise turnover.

What should I keep in mind before applying?

There are a few points to consider before applying:

• What is the nature of your inventory? Slow-selling inventory may not be ideal for this type of finance is you may not find a lender.
• What is your credit like? You will generally need good credit to be eligible for unsecured inventory finance.
• Are you confident in your inventory? Remember the lender has the right to inspect the inventory to ensure it's maintained its value and that you keep track of your inventory.
• How serious are you? As there is a lot of due diligence involved, a lender may make initial assessments and present a preliminary offer prior to a thorough review. You may be required to pay a due diligence fee before a final offer is made.

How to qualify for unsecured inventory finance

Lenders want to see that you're able to make repayments, so you need to prove that your business is in decent shape financially. While you don't have to put up collateral for an unsecured inventory loan, your business must meet a few criteria.

• Time in the industry. Lenders usually require that your business has been trading for at least two years.
• Minimum annual revenue. You must show your annual earnings. Minimum earning requirements differ from lender to lender.
• Credit defaults. Defaulting on existing financial commitments shows lenders that your business is not in a position to take on another loan.
• Industry type. Whether or not a lender will approve a loan depends on your industry. If your business type is considered to be volatile or unpredictable, your application might be rejected.

What will I need to apply for inventory finance?

While this will vary from lender to lender, it is a good idea to collect and assess the following documents prior to applying. There is a good chance that inventory finance lenders will want to look at:

• Balance sheets: Having accurate balance sheets for at least two financial years.
• Profit and loss statements: Having accurate profit and loss statements for the current and previous two financial years.
• Business tax return: Will help the lender assess the revenue history of the business.
• Personal tax return: If you are a sole trader or have recently started a business, this may be required by a lender.
• Current inventory list: An itemised list of all the inventory that is currently on hand.
• Inventory management records: These will help to show the lender how quickly inventory has turned over historically.
• Sales forecast: Well-constructed forecasts will help a lender assess the feasibility of invoice financing as an option for your business. You can compare invoice financing products below.

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Finder Score	Min. Loan Amount	Max. Loan Amount	Loan Term	Upfront Fee	Filter Values
Promoted Finder Score 9.5 Excellent Valiant Finance Business Loan Broker	Finder Score 9.5 Excellent	$5,000	$20,000,000	3 months to 7 years	$0 application fee		A Business Lending Specialist from Valiant Finance can give you access to competitive business loans from over 80 lenders. Loans between $5,000 and $20 million are available. Request a call – your loan can be funded in 1 business day.	Enquire nowMore info Compare product selection Compare	loading
Finder Score 7.9 Great ScotPac Invoice Finance	Finder Score 7.9 Great	$200,000	$150,000,000	1 to 2 years	Establishment fee 1% of the limit		Improve your business cash flow by financing your outstanding invoices. No minimum trading history required, but minimum 12 - month term and $200,000 in invoices.	Go to siteMore info Compare product selection Compare	loading
Finder Score 8.8 Great NAB Vehicle & Equipment Finance Offer	Finder Score 8.8 Great	$10,000	$150,000	1 to 5 years	$500 initial set up fee		Benefit from a low fixed rate and no upfront deposit to purchase vehicles and equipment for your business.	ContinueMore info Compare product selection Compare	loading
Finder Score 8.4 Great Stratton Finance Business Car Loan	Finder Score 8.4 Great	$10,000	$300,000	1 to 7 years	$482		A business vehicle loan for up to $300,000, with flexible contract terms and fast turnaround times.	ContinueMore info Compare product selection Compare	loading
Finder Score 8.2 Great NAB Vehicle & Equipment Finance	Finder Score 8.2 Great	$10,000	$150,000	1 to 5 years	$600 initial set up fee		Benefit from a low fixed rate and no upfront deposit to purchase vehicles and equipment for your business.	ContinueMore info Compare product selection Compare	loading
Finder Score 8 Great Swoop Finance Business Loan	Finder Score 8 Great	$5,000	$20,000,000	3 months to 30 years	Depending on your loan contract		Apply online and borrow between $5,000 and $20,000,000. Available to businesses with a minimum of 6 months operating history and have $20,000 in turnover.	ContinueMore info Compare product selection Compare	loading
Finder Score 7.7 Great Cash.com.au Commercial Finance	Finder Score 7.7 Great	$5,000	$500,000	3 months to 6 years	$0 application fee		You’ll receive a rate from 5.89% p.a. based on your circumstances. Both secured and unsecured business loans are available from $5,000 - $500,000, on terms of up to 5 years.	ContinueMore info Compare product selection Compare	loading
Finder Score 7.3 Great Funding Pro Invoice Finance	Finder Score 7.3 Great		No maximum amount	1 to 3 months			ContinueMore info Compare product selection Compare	loading
Finder Score 7.3 Great Funding Pro Invoice Discounting	Finder Score 7.3 Great		No maximum amount	1 to 3 months			ContinueMore info Compare product selection Compare	loading
Finder Score 7.2 Great Invoice Financing Australia	Finder Score 7.2 Great	$50,000	$5,000,000				ContinueMore info Compare product selection Compare	loading
Finder Score 7.1 Great Westpac Invoice Finance	Finder Score 7.1 Great	$500,000	No maximum amount				ContinueMore info Compare product selection Compare	loading
Finder Score 7 Great Single Invoice Finance	Finder Score 7 Great		No maximum amount		3 to 5%		ContinueMore info Compare product selection Compare	loading
Finder Score 7 Great Funding Pro Trade Finance	Finder Score 7 Great		No maximum amount	2 to 4 months	2% establishment fee		ContinueMore info Compare product selection Compare	loading
Finder Score 6.9 Standard Bigstone Asset Finance	Finder Score 6.9 Standard	$10,000	$2,000,000	1 to 5 years	$250		Borrow up to 100% of the value of your assets with no ongoing fees and the option for low doc finance.	ContinueMore info Compare product selection Compare	loading
Finder Score 6.6 Standard MiFinance ABN Loan	Finder Score 6.6 Standard	$100	$1,000	16 to 30 months	20%		ContinueMore info Compare product selection Compare	loading
Finder Score 6.5 Standard Cashflow Finance’s Debtor Finance	Finder Score 6.5 Standard		No maximum amount	1 to 3 months			ContinueMore info Compare product selection Compare	loading
Finder Score 6.4 Standard Cashflow Finance's Equipment Finance	Finder Score 6.4 Standard	$20,000	$500,000				ContinueMore info Compare product selection Compare	loading
Finder Score 6 Standard Earlypay Equipment Finance	Finder Score 6 Standard	$50,000	$1,500,000	2 to 5 years	$750 - Establishment fee		Upgrade or expand your business's equipment with equipment finance from Earlypay. Borrow from $50,000 to $1,500,000.	ContinueMore info Compare product selection Compare	loading
Finder Score 5.5 Standard Royal Finance Secured Business Loan	Finder Score 5.5 Standard	$50,000	$5,000,000	2 months to 1 year	depends on amount borrowed		Get access to a loan from $50,000 to $5,000,000 with Royal Finance. Standard loan terms range from 2 months to 1 year, extensions are also available.	ContinueMore info Compare product selection Compare	loading
Finder Score 5.5 Standard Fifo Capital Business Finance Business Loans	Finder Score 5.5 Standard	$50,000	$5,000,000	3 months to 1 year	Available on application		Borrow between $50,000 and $5,000,000 with Fifo Capital who offer short approval times to support your business.	ContinueMore info Compare product selection Compare	loading

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The due diligence process

Along with reviewing the above documents, a lender may want to send an independent auditor to your business. This is in order to ensure that inventory financing is a good solution for your current operations and to mitigate their risk.

Unsecured inventory finance can be a convenient option to keep your business moving, but make sure you compare your loan options before you apply to ensure you get the right financing for what your business needs.

Frequently asked questions

• Can I get unsecured inventory finance if my business is new?

  Yes, some lenders consider applications from new businesses, though you'll usually need to show steady sales or strong demand forecasts. Having a detailed inventory plan and accurate cash flow projections can help strengthen your application.

• How fast can I access funds through unsecured inventory finance?

  Funding speed varies by lender, but unsecured inventory loans are often approved within a few business days. Some online lenders can release funds in 24 to 48 hours once your documents are verified.

• Does unsecured inventory finance require a personal guarantee?

  Many lenders require a director's guarantee for unsecured loans. This means you're personally responsible for the repayment if your business can't meet its obligations, even though no business assets are used as security.

• What industries commonly use unsecured inventory finance?

  It's popular among retail, wholesale and e-commerce businesses that need to purchase stock ahead of peak demand. Seasonal operators and importers also use these loans to manage supply cycles or bulk orders.

• Can I use unsecured inventory finance to buy overseas stock?

  Yes. Most lenders allow you to use the funds to purchase both local and international inventory, as long as you can show how the stock supports ongoing sales and revenue.

• How much can I borrow with unsecured inventory finance?

  Loan amounts typically range from $5,000 to $500,000, depending on the lender and your business's revenue, credit history and repayment capacity.

• What happens if my inventory doesn't sell as expected?

  If your stock doesn't move as quickly as planned, you'll still need to meet your loan repayments. It's wise to factor in conservative sales projections and maintain a financial buffer when planning your loan.

• Is unsecured inventory finance suitable for short-term needs?

  Yes. Because of its flexibility and fast approval, it's ideal for short-term funding such as covering seasonal surges or sudden supplier opportunities.

• Can I refinance my existing inventory loan?

  In many cases, yes. Refinancing can help reduce interest rates, extend repayment terms or free up cash flow, provided your business meets the new lender's requirements.

• Will using unsecured inventory finance affect my credit score?

  Applying for or taking out an unsecured inventory loan can affect your business and personal credit scores. Making repayments on time helps build a positive credit history, while missed payments can lower your score.

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Written by

Elizabeth Barry

Journalist

Elizabeth Barry is an experienced journalist with over 10 years of expertise in personal finance, contributing to outlets like the ABC, Sydney Morning Herald, and 7News. She holds a Master of Arts in Creative Writing and a Bachelor of Arts in Communication from the University of Technology Sydney, and has earned multiple award nominations, including a Highly Commended recognition at the 2017 Lizzies. Elizabeth began her career at Finder in 2013, progressing through roles to become Lead Editor, where she oversaw a wide range of personal finance coverage until 2024. See full bio

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