Alternatives to stocking finance

What is stocking finance?

Stocking finance is a form of finance tailored for businesses that need to purchase inventory, particularly for businesses such as automotive dealerships. It enables businesses to buy stock without paying upfront.

The lender pays the supplier directly, and the business repays the facility as inventory is sold. This helps preserve cash flow and maintain high stock levels.

Although stocking finance is an important solution, car dealerships can also consider alternatives. These products offer great flexibility, enabling dealers to buy inventory outright without being dependent on the volume of vehicles sold.

Alternatives to stocking finance

Unsecured business loan

An unsecured business loan is a solution that is approved to borrowers based on their creditworthiness, rather than requiring collateral.

This type of loan is suitable for business who do not want to use their assets as security against the loan. Unsecured loans are highly flexible, and can be tailored to the specific business, with repayment terms ranging from 6 to 72 months, and loan values being between £10,000 and £2,000,000.

Unsecured business loans have many benefits including:

• Flexible funding option
• Quick application procedure
• Fast approval process
• Suited to short-term borrowing
• Refinance current business loans
• Collateral is not needed

What can I use an unsecured business loan for?

• Purchase inventory
• Cover operating expenses
• Refinance existing debt
• Quick capital access
• Cash flow
• Hiring new staff

Revolving credit facility

A revolving credit facility provides a flexible credit line that a business can draw from and repay as needed, as it allows repeated use of the same facility without needing to reapply.

Interest on revolving credit facilities is not based off the credit limit, rather the amount borrowed.

This is a short-term method of finance, with agreements typically lasting up to 12 months, however, extensions could potentially be available depending on the funder and credit requirements.

Benefits of a revolving credit facility include:

• Flexible solution
• Quick funding process
• Covers short-term expenses
• Maintain cash flow
• Interest only paid on the borrowed figure
• Simple application

What can I use a revolving credit facility for?

• Manage cash flow
• Make day-to-day payments
• Fund projects
• Purchasing equipment or stock
• Staff expenses
• Working capital

Supplier line finance

Supplier line finance is a working capital solution that allows suppliers to receive early payment on approved invoices. Arranged by the buyer through a finance provider, it improves cash flow without impacting the buyer’s own liquidity. This supports smoother operations, extended payment terms, and stronger supply chain relationships, ideal for businesses seeking financial flexibility.

Advantages of supplier line finance are:

• Improves cash flow
• Reduces supply chain disruption
• Short-term solution
• Extended payment terms
• Flexibility
• Quick process

What can supplier line finance be used for?

• Paying suppliers early
• Manage working capital
• Stabilise cash flow
• Streamline payments
• Reduce administrative burden
• Purchasing inventory

If you would like to learn more about our range of finance products, or if you want to get a quote, or expert team will be happy to help you.