Inventory financing is business funding used to buy stock, secured by that inventory and repaid as it sells. Graniteford Finance, a small-business funding broker in Casper, WY, helps Natrona County retailers and wholesalers compare it with a line of credit or working capital and connects them with lending partners, who make credit decisions and set rates and terms.
| Built for | Buying stock ahead of sales or in bulk |
|---|---|
| Collateral | The stock being bought, typically noted in a UCC filing |
| Repayment | Installments or paydowns as stock sells, per the partner's terms |
| Partners usually ask for | Sales history, inventory reports and turnover, supplier invoices |
| Local context | 350 retail and 204 wholesale employer establishments in Natrona County (CBP 2023) |
| Office | 106 S Wisconsin Ave, Casper, WY 82609, (307) 368-2297 |
How inventory financing works
A lending partner advances money to buy goods, and the goods secure the advance. Because inventory can lose value, sell slowly or go out of style, partners usually lend only a portion of its value and pay close attention to how quickly it turns. Repayment may be a fixed schedule, or a paydown each time financed items sell, depending on the structure.
The partner normally records its claim on the inventory by filing a UCC financing statement with the state. That filing shows up when anyone searches the business's records, and it can limit other borrowing against the same goods. Our Wyoming UCC guide explains how to find and read those filings.
Natrona County retail and wholesale
| Measure | Retail trade | Wholesale trade |
|---|---|---|
| Employer establishments, 2023 | 350 | 204 |
| Paid employees, March 2023 | 4,761 | 2,043 |
| Annual payroll, 2023 | $183.5 million | $161.6 million |
| Employers with fewer than 5 employees, 2023 | 142 (40.6%) | 89 (43.6%) |
| Businesses with no paid employees, 2024 | 673 | 144 |
Sources: U.S. Census Bureau, County Business Patterns 2023 (employer rows) and Nonemployer Statistics 2024 (last row). The two programs cover different businesses and years and are not added together. Retail trade had more employer establishments than any other sector in the county in 2023.
Inventory financing, a credit line or working capital?
| Inventory financing | Line of credit | Working capital loan | |
|---|---|---|---|
| Secured by | The inventory bought | Varies; may be unsecured or secured by business assets | Varies |
| Fits | Large or seasonal stock purchases | Frequent, smaller restocks | A one-time gap that is not only stock |
| Repayment follows | Sales of the financed goods, or a set schedule | The drawn balance | Fixed installments |
A shop that restocks every few weeks may find a line of credit simpler. A wholesaler placing a few large orders a year may find dedicated inventory financing a better match. If the need goes beyond stock, look at working capital.
Floor plan financing, briefly
Floor plan financing is a form of inventory financing for high-value items sold one at a time, such as vehicles, trailers, boats or large equipment. The lender pays the manufacturer or distributor for each unit, and the dealer repays that unit's balance when it sells, often with periodic checks of the units on hand. It is specialized; most shops and distributors use the general structures above.
Inventory financing or factoring?
They solve different problems. Inventory financing is secured by goods still on your shelves or in your warehouse. Factoring sells invoices you have already issued to a factoring company, which advances part of their value and collects from your customers. A distributor selling on terms to other businesses might use both at different stages: inventory financing to buy stock, and factoring after the sale while it waits for payment. Graniteford Finance's partners offer inventory financing; ask us whether a factoring arrangement fits your situation.
Costs to compare before you order
The price of inventory financing is more than its interest or fee. Add up what the stock really costs to carry: the financing charges for as long as the goods sit, storage and insurance, and the markdowns you take on items that sell slowly. Then set that against what the funding earns you, such as a supplier's volume discount or sales you would otherwise miss. If the numbers only work when everything sells at full price on schedule, order less.
Ask each partner how it values your inventory, how often it checks stock levels, and what happens if goods are damaged or unsold at the end of the term.
Preparing a request
- Sales history for at least a year, showing how fast stock sells and how sales move through the year
- A current inventory report: what you hold, its cost and its age
- The supplier quote or order you want to fund
- Business bank statements and the most recent tax return
- A list of existing liens or loans secured by inventory
A partner will want to see that the goods sell through in a reasonable period. Slow-moving or highly specialized stock is harder to finance. How a request moves explains the review stage.
By Graniteford Finance ยท Updated