Why this use case matters
Stock cycles tie up working capital. A retailer ordering autumn-winter range in summer might wait three to six months before the cash returns through sales. Funding that cycle externally protects the rest of the business from being squeezed at the wrong moment — payroll, VAT and rent still need to be paid while stock sits in the warehouse.
Lenders treat stock finance as a revenue-led decision. They want to see that the business sells through its stock predictably — strong card sales, marketplace revenue, or a track record of converting purchases into receivables. The stronger that signal, the larger the advance and the cheaper the cost of capital. Weak or new sales channels make the route harder.
Finance types that usually fit
Based on how UK lenders typically underwrite this use case, the following finance categories are the most common fit:
Revenue-Based Finance
Growth capital repaid flexibly against future revenue.
Merchant Cash Advance
Cash advance repaid as a share of card/POS/platform sales.
Unsecured Business Loan
Term loan or credit line repaid through fixed instalments.
Finance types that usually don't fit
These categories are mentioned for completeness but typically aren't appropriate for this use case:
- Commercial Mortgage — Long-term commercial property purchase/refinance funding.
- Bridging Finance — Short-term property-backed finance.
Eligibility questions UK lenders typically ask
- Are you trading 6+ months with consistent monthly revenue?
- Do you sell through cards, ecommerce platforms or wholesale invoices?
- Is the stock identifiable (SKUs, supplier invoice) and sellable through your existing channels?
- Is the funding request in line with one to three months of revenue?
- Can you evidence sell-through rates or stock turn from previous cycles?
- Are you up to date on existing finance and tax obligations?
Documents to prepare
- Supplier invoice or purchase order for the stock
- Card processor or marketplace statements
- Last 3–6 months of business bank statements
- Latest filed accounts or management accounts
- Director ID and proof of address
- Brief commentary on stock turn / sell-through
UK lenders that often look at this use case
The lenders below publish criteria consistent with this use case. Final approval is always subject to lender underwriting.
Wayflyer
Revenue-based funding
- Amount
- Up to £1m SMB; up to £20m broader platform
- Speed
- 24–48h decision; funds in 24h
- Security / PG
- No PG promoted on SMB page
- Data confidence
- High
Outfund
Growth funding
- Amount
- $35k–$13m surfaced
- Speed
- Offer ~24h
- Security / PG
- Not disclosed
- Data confidence
- Low / needs UK confirmation
Liberis
Business Cash Advance
- Amount
- £500–£1m; flexi up to £2m via partners
- Speed
- Minutes via partner
- Security / PG
- Not clearly disclosed
- Data confidence
- Medium
iwoca
Business loan / credit line
- Amount
- £1k–£1m
- Speed
- Instant/same-day for many
- Security / PG
- Unsecured positioning
- Data confidence
- High
Shopify
Shopify Capital
- Amount
- £400–£2m cash advances; £200–£1m loans
- Speed
- Not disclosed
- Security / PG
- Not disclosed
- Data confidence
- Medium
Frequently asked questions
- What is the best finance type for buying seasonal stock?
- For ecommerce, revenue-based finance from providers like Wayflyer or Outfund is often the cleanest fit because repayments flex with sales. For retail/hospitality with card volume, a merchant cash advance from Liberis, YouLend or platform-native products (Shopify Capital, Square Loans) can match the seasonal pattern.
- Can I get stock finance with three months of trading?
- Possible but limited. Some platform-native products will look at very recent merchants where the platform itself sees the sales data. Most other lenders prefer six to twelve months of revenue history before funding stock.
- How is stock purchase finance different from invoice finance?
- Invoice finance unlocks money already invoiced to customers. Stock finance funds inventory before it is sold. They can be used together — buying stock via revenue-based finance, then accelerating receivables via invoice finance as the stock sells through to B2B customers.
- Do lenders take the stock itself as security?
- Rarely in unsecured working capital products. Stock is illiquid and varies in value. Most stock-purchase finance is underwritten on revenue and director PG rather than against the stock as a charged asset.
- Can I use a credit card to buy stock?
- For small replenishments, a business credit card from providers like Capital on Tap or American Express can be efficient — the cash is short-term and you get rewards or extended payment terms. For larger seasonal cycles, the cost stacks up quickly and a structured product is usually cheaper.