Stock financing—also known as inventory financing—is a strategic funding option that allows businesses to release cash tied up in unsold stock. For many SMEs, especially in retail, manufacturing or wholesale sectors, inventory is a major asset that can limit cash flow. With stock finance, you can access the working capital needed to grow without waiting for products to sell.
What Is Stock Financing?
Stock financing involves using your existing or future inventory as collateral to secure a short-term loan or revolving credit facility. Lenders provide a cash advance based on the value of your stock, giving you the liquidity to replenish stock, invest in new opportunities or manage operational costs.
How It Helps Your Business
For businesses that rely on maintaining large volumes of inventory, stock financing provides a critical cash injection when it’s needed most. Whether you’re gearing up for seasonal demand, managing supplier payment cycles or expanding your product range, this facility ensures you don’t have to pause progress due to limited cash flow.
Key Benefits
- Improved Cash Flow: Release funds tied up in inventory to cover day-to-day expenses.
- Support for Growth: Invest in marketing, product expansion or staffing with newly freed capital.
- Greater Flexibility: Facilities can be structured to align with your sales cycles and stock turnover.
- No Need to Sell Assets: Secure funding without having to part with valuable equipment or property.
Is It Right for Your Business?
Stock finance is ideal for companies with significant inventory and predictable sales patterns. It’s particularly useful for wholesalers, distributors, and product-based retailers who face seasonal spikes or long lead times from suppliers.
However, lenders will typically assess the condition, turnover rate, and resale value of your inventory. Be prepared to keep detailed stock records and potentially undergo regular audits as part of the agreement.
Why Choose TMS Finance?
At TMS Finance, we understand the pressures that come with managing stock-heavy operations. We work with a network of experienced stock finance providers to find the right facility tailored to your industry and cash flow needs.
Our team offers fast approvals, competitive terms and full transparency from start to finish—so you can focus on running your business with confidence. Whether you’re looking to grow or simply navigate a cash flow dip, we’re here to help.
Let’s Unlock the Capital in Your Inventory
If your stockroom is full but your bank account isn’t, it might be time to explore stock financing. Contact TMS Finance today to discover how we can help you unlock the capital tied up in your inventory and fuel your next stage of growth.
