Stocking Finance

Last updated: 10/10/2025

Stock Funding for UK Businesses 

Stocking finance provides UK businesses with a flexible way to purchase stock without straining cash flow. Whether you're a car dealer looking to increase inventory or a wholesale business managing seasonal demand, we offer fast solutions, competitive terms, and support from trusted lenders.

We have a number of solutions to meet your needs, whether you need revolving lines of credit for continuous purchases or a lump sum unsecured loan to purchase stock in bulk we can arrange flexible facilities.

What is Stock Funding?

A stocking loan, also known as stock funding or unit stocking, is finance tailored for businesses that need to purchase inventory, particularly in industries like car sales or wholesale. It allows businesses to acquire stock without tying up their own cash reserves.

Stocking finance can be in respect of vehicles such as cars, vans, lorries, HGVs, trucks and agricultural vehicles or wholesale goods.

Business loan solutions for stock funding

The first option for stock funding is a business loan. A business loan provides a lump sum of cash and is repaid over a fixed term with interest.

Unsecured loans are provided based on the borrower’s creditworthiness, without requiring collateral. Ideal for businesses without tangible assets or those needing quick funds.

Secured loans are provided based on the value and available equity in the security on offer, typically a commercial or residential property.

Business loans provide unrivaled freedom for stock purchasing and are a great alternative to traditional stocking finance.

If you want to avoid the audits and restrictions that come with traditional stocking finance then a business loan is perfect for you.

Revolving credit solutions for stock funding

The second option for stock funding is a revolving credit facility. A revolving credit facility provides you with a credit account that can be continually utilised to purchase stock. When you draw down funds from the credit account you are offered a variety of repayment terms to suit your needs.

Whether you need to directly settle invoices, withdraw cash or access funds via a credit card, a revolving credit facility could be the best solution for you.

Revolving credit facilities are provided based on the borrower’s creditworthiness, without requiring collateral. Ideal for businesses without tangible assets or those needing quick funds.

Revolving credit facilities are ideal for businesses that regularly purchase stock and need a fast revolving solution.

A secondary benefit of revolving credit facilities is that they can be used for a variety of requirements should you need to cover operational costs, recruitment or marketing costs, or as an emergency fund.

Additionally, both options eliminate the risk of having stock repossessed if sales are slower than expected. Traditional stocking finance often comes with conditions that require stock to be sold within a certain time frame, which can put pressure on businesses, particularly in fluctuating markets. They can also come with reciprocal business requirements forcing you to push that lenders personal finance products on your customers.

The benefits of our stocking finance solutions

Unsecured Loans and Revolving Credit Facilities offer many benefits over a traditional stocking finance facility.

Here are some of the advantages:

No Collateral Required - unlike stocking finance, which typically uses stock (such as vehicles) as security, an unsecured loan doesn’t require assets as collateral in order to get the loan.
Greater Flexibility - unsecured loans can be used for any business purpose, not just purchasing stock. This makes them a better option for funding marketing, expansion, or operational costs.
No Ties to Stock Turnover - stocking finance is directly linked to stock purchases and sales. If stock isn’t sold within a specific time frame, businesses may face pressure to repay.
Easier to Manage - with a stocking finance facility, businesses must track stock levels and sales to manage their facility properly. An unsecured loan is a straightforward lump sum with set repayment terms, making it easier to manage for the business.

Example of alternative finance solution to stocking finance

A used car dealership turned to MAF to replace its existing stocking finance facility with an unsecured loan. The dealership was frustrated with the level of service from its stocking finance provider and sought a £500K unsecured loan to consolidate its financing needs.

By doing so the car dealership were able to streamline their funding into a single loan, allowing them to focus on purchasing new vehicles and improving their profit margins per sale.

With the help of our panel of funders, we split the loan into two £250K unsecured loans, effectively closing their stocking facility. The client was pleased with the outcome, as the unsecured loan provided them with more flexibility and the potential for greater profits in the years to come.

Before applying for stock funding

Before making an application you should get together a full set of your latest filed financial accounts, together with any available up to date management or draft accounts.

As a business owner you will normally be required to offer a personal guarantee so you should also be ready to submit details of your personal financial situation.

Once you apply, the chosen provider will review all of the information submitted and run credit checks on the business and the business owners.

To qualify for credit facilities, the business needs to have good credit history to demonstrate to the funder that a new credit line is appropriate and help them assess the size of the facility. Low credit scores and some adverse marks on a credit history won’t always prevent an individual from obtaining a facility, but it will limit the amount of capital a lender is willing to give to a particular business and at what rate.

How to apply for stocking finance

MAF Finance Group can compare finance offerings from a wide panel of lenders to find the best option for you.

If you would like to get a quote or need further information, simply fill in the form and we will contact you. If you want to speak to someone directly, you can call us on 0115 958 6872 and a member of our team will be happy to speak to you. Alternatively, email us at [email protected].