Inventory Financing up to $2,000,000
Capital to buy stock before you sell it, secured against the inventory rather than your balance sheet. Built for importers, distributors, wholesalers and retailers whose cash is tied up on the shelf.
Start an applicationInventory financing is a revolving facility that lets a Canadian business buy stock before it is sold, using the inventory itself as the security. Voxen places facilities from $50,000 to $2,000,000, typically advancing a percentage of the cost value of eligible stock, on 3 to 12 month revolving terms. It suits businesses whose working capital is structurally locked in product — importers, distributors, wholesalers and seasonal retailers — and it is repaid as the stock sells.
What is inventory financing?
Inventory financing is a loan or revolving line secured by the stock a business holds or is about to buy. The lender advances against the cost value of eligible inventory, and the facility is repaid as that inventory sells. Unlike a general operating line, the security is the product itself, which is why a business with a thin balance sheet but real, saleable stock can often access it.
It exists because of a timing problem that has nothing to do with whether a business is profitable. A distributor pays a supplier in March for goods that sell in June. A retailer commits to a seasonal buy months before the season. In both cases the money leaves before it arrives, and the gap is measured in months, not days.
Voxen places inventory facilities from $50,000 to $2,000,000 for Canadian businesses. The advance rate depends on what the stock is: fast-moving goods with a clear resale market and stable pricing support a higher advance than specialized, perishable or fashion-dated inventory. Eligible stock is normally registered under a first charge, and the facility is reviewed as it revolves.
Best for these business situations
- Importers paying suppliers months before goods land and sell
- Distributors and wholesalers holding stock across a long sales cycle
- Seasonal retailers committing to a buy ahead of the season
- E-commerce operators funding inventory and ad spend at the same time
- Businesses taking a volume discount that requires paying upfront
- Manufacturers holding raw materials against confirmed demand
- Companies whose bank operating line is fully drawn against receivables
- Growth that is outrunning the stock the business can afford to carry
Less suited to
- Perishable stock with a short shelf life and no resale market
- Inventory already pledged in full to an existing secured lender
- Businesses without inventory tracking that can be verified
- Slow-moving or obsolete stock that has been sitting for years
- Needs better served by factoring, where the money is owed rather than on the shelf
How it works
- Show the stock — Send recent inventory reports, supplier invoices and the last six months of bank statements. What matters is what the stock is, what it cost, and how fast it turns.
- Advance rate set — We place the file with a lender whose appetite matches your inventory type, and come back with the advance rate, the facility limit and the review cycle.
- Draw as you buy — Draw against the facility to pay suppliers, and repay as the stock sells. The limit revolves, so a facility set once carries you through repeat buying cycles.
Inventory facility structure
| Facility Size | $50,000 – $2,000,000 |
|---|---|
| Advance Rate | Typically 50–70% of eligible cost value |
| Term | 3 to 12 months, revolving |
| Cost | Quoted per file, on the drawn balance |
| Security | First charge on inventory (PPSA), personal guarantee |
| Reporting | Periodic inventory listing |
| Repayment | As stock sells, or at facility review |
| Time to Funding | Days once inventory reporting is in hand |
At a glance
| Facility Size | $50K–$2M |
|---|---|
| Revolving Term | 3–12 mo |
| Primary Security | Inventory |
Frequently asked questions
How much can I borrow against my inventory?
The limit is set from the cost value of eligible stock, not its retail value, and lenders typically advance a portion of that — commonly 50% to 70% depending on what the inventory is. Fast-moving goods with a stable resale market support the higher end. Specialized, seasonal or fashion-dated stock supports less, because the lender is pricing what the inventory would realise if it had to sell it.
What is the difference between inventory financing and a line of credit?
A business line of credit is underwritten on overall cash flow and can be used for anything. Inventory financing is underwritten on the stock and is used to buy stock. In practice the distinction matters most when a bank operating line is already fully margined against receivables: the inventory is an asset the existing facility is not lending against, and it can carry its own limit.
Do I need to give up control of my inventory?
No. In a standard facility the stock stays in your warehouse and you sell it in the normal course. The lender registers a security interest and asks for periodic inventory reporting. Field examinations are more common on larger facilities. What you cannot do is pledge the same stock to two lenders — that is the one thing that ends a facility immediately.
Can I finance inventory I have not bought yet?
That is usually purchase order financing rather than inventory financing. If you hold a confirmed customer order and need to pay a supplier to fulfil it, purchase order financing pays the supplier directly. Inventory financing lends against stock you own or are acquiring for general sale. Many businesses use both in sequence: purchase order financing to produce the goods, then inventory financing to carry them.
What documents do I need?
Six months of business bank statements, a current inventory listing with cost values, recent supplier invoices, and your accounts payable and receivable ageing. If stock is held at a third-party warehouse, the storage agreement matters too, because it affects who can access the goods.
Is inventory financing available to e-commerce businesses?
Yes, and it is one of the most common uses. E-commerce operators carry the double squeeze of paying for inventory and advertising before revenue arrives. Platform sales data — Shopify, Amazon and similar — makes stock turn easy to verify, which generally helps the file rather than hindering it.
What happens if the stock does not sell?
The facility still has to be repaid, which is why advance rates are set below cost value and why lenders care about turn rate more than volume. Ask before you sign what happens at facility review if inventory ages past its assumed turn — that clause, not the headline rate, is what determines how the facility behaves in a bad season.
Can I get inventory financing if the bank has already declined?
Often, because it is a different test. A bank margins its operating line against receivables and filed financial statements. An inventory facility is underwritten on the stock, its turn rate and its resale market. A business that fails the first test can pass the second, and that is why the two frequently sit side by side rather than replacing one another.