Fast funding for stock: buy now, sell over the coming weeks

Why does buying stock need to be fast?

Because stock opportunities expire. A supplier offers a clearance price for 48 hours. A wholesaler has one container left before the Christmas rush. A big customer places an order that needs materials bought this week to meet their delivery date. Wait for the cash to build up naturally and the opportunity is gone, or the customer goes elsewhere.

There’s also the slower squeeze: retailers, wholesalers and manufacturers who need to stock up months before a busy season, while the revenue doesn’t arrive until the season itself.

How fast can stock funding land?

Order size	Route	Speed possible
Smaller, trading business	Unsecured cash-flow loan	Same day possible
Regular seasonal build-up	Line of credit	Immediate once set up
$20k – $250k, property	Caveat or second mortgage	Same day possible
Large orders up to $5m	Property-secured loan	24–48 hours possible

Is borrowing for a bulk-buy discount worth it?

Do the sums in dollars. Compare the discount you’ll get with the total cost of the loan over the time it takes to sell the stock. If a supplier offers 12% off a $100,000 order and the loan’s full cost over the selling period is well below $12,000, borrowing could make sense, as long as you’re confident the stock will sell in that time.

The risk is slow-moving stock. A discount means nothing if the goods sit in the warehouse for a year. Be honest about sell-through.

How should I match the loan to the stock?

Think about how long the stock takes to turn into cash: buying it, receiving it, selling it and being paid for it. That cycle is your loan term. A cafe buying a month of coffee beans needs a very short loan. An importer buying a container that won’t arrive for eight weeks and will sell over three months needs something longer.

Illustrative example: a Gold Coast surf retailer needs $85,000 of summer stock in September, ahead of the school holidays. Sales will build from November and peak in January. A line of credit lets the owner draw funds as orders are placed and repay them through December and January, rather than taking one large loan for longer than needed.

What about importing?

Imported stock adds weeks to the cycle. You may need to pay a deposit when you order, the balance before shipping, then freight, customs duty and GST on import before the goods clear. Factor the whole timeline into the loan. Business.gov.au has useful information on importing obligations.

What do lenders want to see?

• The supplier’s invoice, quote or order confirmation
• Recent business bank statements showing trading
• How quickly similar stock has sold before
• For larger amounts, property details or recent financials

Paying the supplier directly at settlement can help lock the order in and reassures the lender the money is used as intended.

How can I need less stock funding next season?

Negotiate longer supplier terms as your relationship builds. Use sales data to order closer to what you’ll actually sell. Clear slow-moving stock before the next buy. And consider a standing line of credit if every season follows the same pattern. Our page on the seasonal cash gap covers seasonal businesses in more depth.

Got a supplier deadline? Send a 60-second enquiry with the order amount.

What if the stock doesn’t sell as planned?

Have a plan B before you buy. Know which items you can discount, return to the supplier or sell through another channel if demand disappoints. Match the loan term to a realistic selling period rather than the most optimistic one, and keep enough cash in reserve to meet repayments even if sales are slower than hoped. A lender will feel more comfortable, and so will you.

Consignment and supplier finance

Some suppliers offer consignment stock, where you pay only once items sell, or extended terms for established customers. These can reduce or remove the need to borrow. Ask before you assume you need to fund the full order upfront. Combining better supplier terms with a modest loan or line of credit is often the most efficient way to fund stock.

Stocktakes and record keeping

Accurate stock records help with lending, tax and planning. Know what you hold, what it cost and how quickly each line sells. Lenders may ask how quickly stock turns over, and having the answer ready speeds things up.

See if your stock order can be funded fast

There’s no credit check when you first enquire, so you can ask freely. Your details won’t be sprayed out to a stack of lenders. A real person reads your enquiry, looks at the order and how quickly the stock turns over, then calls you with the quickest workable route.

Please put the real order amount and your state on the form, plus any property you own, so we can match you properly the first time. Check if you qualify.