What is inventory financing and how does it work in Canada?
Inventory financing advances working capital against stock your business holds for sale — typically 50–70% of inventory value on facilities from $50,000 to $2,000,000. The stock stays in your warehouse and keeps selling.
Start an applicationInventory financing funds the stock position itself rather than a specific order. Retailers, wholesalers, and e-commerce brands use it to buy ahead of a season, take supplier bulk pricing, or hold enough depth to serve demand without draining operating cash.
The facility follows the inventory's appraised value and how reliably it turns: standard goods with a resale market support a stronger facility than seasonal or perishable stock. It also works on inventory you already own — advancing capital against stock in the warehouse, the same way equipment refinancing works on owned equipment.
If the need is broader than stock — payroll, suppliers, overhead moving week to week — a line of credit is the closer instrument; the two are weighed in detail in our inventory financing vs line of credit guide.
What each product is for
| Merchant Cash Advance (MCA) | Fast working capital, cash-flow-driven approval |
|---|---|
| Business Line of Credit | Fluctuating cash needs, payroll smoothing |
| Invoice Factoring | B2B businesses with slow-paying clients |
| Equipment Financing | Trucks, machinery, kitchen, construction, tech |
| Bridge Loan | Short-term gap until a known future event |
| Term Loan | Growth, expansion, refinancing |
| Inventory Financing | Buying stock before it sells |
| Acquisition Financing | Buying a business or partner buyout |