Use case · Inventory financing
Need cash to restock before the rush? Honest options.
Busy season is coming. Shelves are thin. Before you reach for an MCA, check whether your supplier offers net-30 terms — because that's free money. Here's the full stack, cheapest to most expensive.
If you have 10 minutes
Take the 2-min quiz, then talk to us.
The quiz tells you which tier you're in (A/B/C-paper) and which product fits your inventory timeline. The pre-qualification flow routes you to the funder most likely to approve at the best terms. No credit pull on either.
Options ranked cheapest to most expensive
Every row assumes you apply or initiate early in the week with documents ready. Cost figures are indicative — your deal will vary.
| Option | Fund speed | Cost | Realistic? |
|---|---|---|---|
| Existing LOC draw | Same day | 6–30% APR | If you have one |
| Supplier net-30/60 terms | Instant (negotiate upfront) | 0% — deferred payment | Ask your supplier first |
| Inventory financing (specialized) | 3–7 days | 1–3% per month on advance | If PO is clean |
| Invoice factoring (B2B AR) | 1–3 days | 1–3% per invoice | If you have B2B receivables |
| MCA (A-paper) | 4 hrs – 2 days | 1.20–1.32 factor | If clean statements |
| MCA (B/C-paper) | 2–5 days | 1.32–1.50 factor | Higher cost, last resort |
| Owner contribution | Same day | 0% — just your cash | If you have it |
Supplier net terms beat every financing product on cost because the “interest” is baked into your existing relationship. Call your supplier rep before you fill out any application.
Five-minute decision tree
Read top to bottom. Stop at the first “yes.”
Step 1
Does your supplier offer net-30 or net-60 payment terms?
Take them immediately. Net terms are the cheapest form of inventory financing that exists — it's deferred payment with no interest, assuming you pay on time. Even if you pay a 2% early-pay discount to get them, you're still miles ahead of any financing product.
Step 2
Do you have an active business line of credit with available capacity?
Draw from it. Cost is dramatically lower than any MCA. Restock the inventory, sell it, pay down the LOC within the next 30–60 days. Stop reading.
Step 3
Do you have a clean purchase order and 12+ months in business?
Apply for specialized inventory financing (Kickfurther, Behalf, or your industry-specific lender). Takes 3–7 days but typically costs 1–3% per month on the advance — still way cheaper than an MCA at 1.35 factor.
Step 4
Do you have B2B receivables you can factor to free up cash?
Factor an invoice. The AR you're waiting to collect becomes the inventory capital you need now. 1–3% fee, funded in 1–3 days. Fundbox and others advance against aging reports within 24 hours.
Step 5
None of the above, but A-paper (6+ months, $15K+/mo revenue, clean statements)?
MCA is defensible here IF your inventory has a clear sell-through timeline shorter than the MCA term. A 6-month MCA for a holiday season inventory push that turns in 45 days works. A 9-month MCA for slow-moving SKUs does not. Two-minute match routes you to the best A-paper terms available.
Step 6
B/C-paper or multiple open MCAs already?
Pause. Adding more MCA debt to fund inventory that might not sell on schedule is how businesses get into trouble. Get a clear sell-through commitment first (pre-orders, contracts, historical comps from last year) before taking on more daily ACH.
The math on an inventory-restock MCA
Restaurant owner. $50,000 monthly revenue. Needs $25,000 to restock ingredients, packaging, and supplies ahead of the holiday catering season. Takes a $25,000 MCA at 1.32 factor over a 6-month term.
The honest read: $5,500 leaving every month for 6 months straight, against $50K/mo revenue. That's 11% of revenue gone before food cost, labor, or rent. Workable if the holiday season delivers the revenue bump — dangerous if the catering season underperforms.
Run your own numbers in the calculator before you sign anything.
What not to do
- Don't stack to restock. If you're already servicing an MCA and you need inventory capital, taking a second MCA to restock is the most direct path to a cash-flow crisis. The combined daily ACH will eat revenue before inventory turns. See the stacking guide.
- Don't restock beyond 60-day turn. Finance only the inventory you can reasonably sell within the next 60 days. Buying 120 days of stock on a 6-month MCA means you're paying daily ACH on inventory that hasn't moved yet. Match the financing term to the inventory turn rate.
- Don't lock working capital in slow-moving SKUs. If certain products consistently sit for 90+ days, financing a big restock of those items with expensive debt is a math problem before it's a business problem. Finance fast-turn products first.
- Don't take an MCA without a sell-through plan. “We think it'll sell” isn't a plan. Historical comps, pre-orders, or signed catering contracts are. If you can't show why this season will clear the inventory, you can't show why the MCA will be serviceable.
- Don't ignore supplier net terms. This is the most common mistake we see. Business owners fill out MCA applications for inventory they could have bought on 30-day terms just by asking their supplier rep. Call before you apply.
Frequently asked questions
- How fast does inventory financing actually fund?
- Specialized inventory lenders (like Kickfurther or Behalf) typically take 3–7 business days because they need to verify the purchase order or supplier invoice. An MCA funds faster (1–2 days) but costs 2–4x more. If you have a supplier invoice and 5 days of lead time, specialized inventory financing almost always wins on cost.
- Can I use an MCA to pay a supplier deposit?
- Yes, and it's one of the more defensible MCA uses — IF the inventory has a clear sell-through timeline shorter than the MCA term. The trap is paying a deposit on seasonal inventory with a 9-month MCA when your sell-through is 3 months. You're paying daily ACH on debt you cleared months ago.
- What if my inventory has slow turn — will a lender still fund me?
- Slow-turn inventory (90+ days) is a yellow flag for most specialized inventory lenders. They underwrite based on how quickly you convert stock to cash. MCA funders generally don't ask about inventory mix at all — they underwrite on bank statement revenue — but that also means you're exposed if the restock doesn't sell. The funder gets paid regardless; you bear all the demand risk.
- Will the funder ask about my inventory mix?
- Specialized inventory lenders: yes, often extensively. They want to know SKUs, supplier, historical turn rate, and sometimes hold a lien on the inventory. MCA funders: rarely. They see bank deposits, not what generated them. For MCA purposes, restocking inventory looks identical to any other business use.
- Is inventory financing easier to qualify for than an MCA?
- Generally harder on credit and documentation, but cheaper if you qualify. Most specialized inventory lenders want 12+ months in business, a real purchase order, and a supplier they can verify. MCA funders are more flexible on credit (they underwrite cash flow) but stricter on recent NSFs and open positions. If you're B/C-paper, MCA may be your only option — just know the cost.
Right now
Two minutes. No credit pull. Real options.
Our pre-qualification flow scores you against every funder above and shows your indicative factor rate, daily ACH, and APR-equivalent before you hand over any documents. No outbound calls — match comes by email and SMS.
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