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Short-Term Stock Finance

Short-term funding for stock purchasing

Many businesses go through periods when cash is tight. It could be that you have seasonal fluctuations in sales or an unexpected expense that causes a cash flow shortfall. Whatever the reason, short-term stock finance, sometimes called a working capital loan, can help.

Short-term stock finance is a fast and flexible form of funding that you can use to buy stock, capitalise on new opportunities or get your business off the ground. At UK Business Finance, we search the whole market to bring you the best short-term stock finance quotes. There are no fees to pay for our service and we even write the loan applications on your behalf so you can focus on growing your business.

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What is short-term stock finance?

Short-term stock finance is a short-term loan that’s designed to help with the day-to-day running of your business. As well as buying stock, you can use the loan to cover other costs such as staff wages, accounts payable and marketing, or provide a cash injection so you can pursue expansion opportunities.

Short-term stock finance can take the form of a secured or unsecured loan that you repay within 12 months or less. Secured loans of between £5,000 and £750,000 are easier to obtain but will require you to provide an asset as security. The amount you can borrow will be limited by the value of the asset you put up as collateral.

Unsecured loans of up to £250,000 are also available. Lending decisions for unsecured finance will be based on the financial health of your business and its credit score. You may also be asked to provide a personal guarantee.

What are the benefits of short-term stock finance?

Short-term stock finance can help you smooth away the bumps in your business’s cash flow and keep you in the black when your income falls or your costs increase.

The benefits include: 

  • Funds can be obtained quickly - sometimes in just 24-48 hours 
  • You can get a secured or unsecured loan and find a deal that works for you
  • Loans are generally easy to obtain
  • Short repayment terms reduce the total cost of the loan
  • There are few restrictions on how you can spend the money

As with all forms of business finance, there are also a few things to look out for. The short-term nature of the loan means the interest rates may be higher than other forms of borrowing. You may also have to provide collateral or a personal guarantee to secure a loan, which can put business and personal assets at risk.

Is my business eligible for short-term stock finance?

Lenders will look at a few factors to determine whether you’re eligible for a loan and how much you can borrow. Most lenders will ask borrowers to provide at least 12 months of trading history and check that the business has positive cash flow. If you want to apply for an unsecured loan, lenders will also consider your business’s financial health and credit rating. Your personal credit score may also be a factor.

If you or your business have a bad credit rating, we can still find you a short-term stock finance deal. You may not be able to access some unsecured loans, but secured loans should still be available if you have a business asset to use as collateral.

Get short-term stock finance for your business

With so many lenders out there, we know how frustrating it can be when you want to find the right deal for your business. As an independent broker, we search more than 50 lenders to bring you short-term stock finance quotes that match the needs of your business. Use our tool to request a quote or get in touch to discuss your requirements with our team.

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Our team of finance experts can provide industry-leading advice on mortgages to suit a range of different scenarios. Call the team on 0808 301 0624 or Contact Us