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Fast and flexible inventory financing with fulfin

Growth financing for online entrepreneurs and traders

What is meant by inventory financing?

Inventory financing is a type of lending that can be understood as post-financing. The traded goods are, in this type of financing, already ordered and paid for. More concretely, the goods are already in a warehouse at the time of the loan application. In this case, the countervalue of the Goods in the warehouse as security for the financing sought. For this purpose, the inventory is valued by the potential lender to determine the total value of the existing inventory. This subsequently allows the amount of the loan granted to be determined. This sum of money can be granted either as a financing framework or as a growth loan and can thus be used flexibly by the applicant. 

In conclusion, it can be seen that in inventory financing the borrower capitalises the liquidity tied up in the inventory. This is drawn directly from the stock, while the value of the stock serves as collateral.

When is this form of financing suitable?

As soon as a company faces a working capital requirement and at the same time has a permanent stock of assessable goods, stock financing comes into question.

Indeed, the central element of this type of financing is that a warehouse can have a high value, reaching into the hundreds of thousands or more. Although this value is then factually also present, the problem is that the deposit at the present time represents only tied liquidity.

Companies for which this form of financing comes into question are usually in (strong) growth phases or have to cushion seasonal effects. All these measures and investments require liquid funds, which not every retailer can provide immediately. With inventory financing, however, the Financing of Goods in the company and this completely independently of existing credit lines. In this way, liquidity required at short notice can be generated quickly and easily. In addition, a re-evaluation of the inventory can also be carried out as the company grows, which means that an increase in the credit line can be granted.

Who is eligible for inventory financing?

Inventory financing is primarily an option for small and medium-sized companies that want to scale with large inventories and release their tied-up liquidity in order to obtain fresh capital in return. Especially with large inventories, this can play an essential role. 

E-commerce providers are the main candidates here. But also many offline retailers who are setting up their own online offering for the first time - or want to expand it - and need to increase their warehouse capacities for this purpose.

In conclusion, warehouse financing can be a good alternative to the classic entrepreneurial loan from the bank under the above-mentioned requirements, although the suitability of this financing option must always be considered individually.

Suitable products and storage

In inventory financing, the products of a company to be secured are the most important award criterion. For this reason, there are certain criteria that must be met. 

Lendable current assets primarily represent exchangeable and physical goods. The stored trade goods should be of stable value, for which they are valued at the current market value.

The goods should preferably be stored with an external and independent logistics service provider (3PL), who confirms his understanding and willingness to exercise the lien rights of the financing partner if required.

What are the advantages of inventory financing?

1. preservation of existing credit lines with house banks 

Through inventory financing, the often relatively expensive overdraft facility does not have to be used or a new working capital loan taken out. This increases independence vis-à-vis the banks, while costs for raising money are reduced.

2. flexible and short-term use of liquidity

With this form of financing, current assets can be converted into liquidity. Thus, inventory financing relieves the overall financing plan. It also adapts to the growth of the company and can be used in a completely flexible manner, giving the company many opportunities for growth.

3. guaranteeing better conditions

Good coverage on inventory financing often provides additional benefits: A financing partner can Offer a warehouse finance loan that is both larger and less expensive than a loan without collateral would be.

Procedure of inventory financing at fulfin

Warehouse financing is a lesser known, but at the same time very attractive financing alternative. Applying for inventory financing is possible via our fulfin platform ( can be carried out completely digitally within a few minutes. The trader can decide for himself whether he wants to secure his financing with his goods or not. This naturally results in price differences and at the same time the maximum loan amount. Financing secured by goods is cheaper and can be higher than unsecured financing. However, both options are possible at any time. Once the merchant has selected his preferred type of financing and provided all the information, payment is usually made on the same day. With our approach, we take the complexity out of the financing process and the seller's accounting department is happy. 

Not quite sure about the requirements and still have unanswered questions or need individual advice on your eligibility for warehouse finance? Then simply submit a free, no-obligation application on the fulfin platform today to find out more or call us on: 089 215375920, where one of our expert colleagues will be happy to help.

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Johannes Schippers

Sales Manager

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Peer Wiesner

Head of Sales & Marketing

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Christopher Donovan

Sales Manager

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Have any question?
Contact us today and we will answer your questions directly.

089 215 375920

Learn more in our financing guide

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