Inventory Financing for Amazon Sellers: How to Fund Your Stock
What Is Inventory Financing?
Inventory financing is a short-term loan or line of credit secured by your inventory. The lender advances capital specifically for purchasing stock, and the inventory itself serves as collateral. If you default, the lender can seize and liquidate the inventory.
For FBA sellers, inventory financing bridges the gap between placing a purchase order and receiving revenue from sales. It's purpose-built for the e-commerce cash flow cycle.
How Inventory Financing Works for FBA
- You apply: Submit sales history, inventory plans, and supplier invoices
- Lender approves: Based on your sales velocity and inventory value
- Lender funds supplier: Money goes directly to your supplier (not your account)
- Supplier ships inventory: To Amazon FBA or your warehouse
- You sell through: Inventory converts to revenue over 30–90 days
- You repay: From sales proceeds, often as a percentage of revenue
Top Inventory Financing Options for FBA Sellers
1. Wayflyer
| Feature | Details |
|---|---|
| Amount | $10K–$20M |
| Requirements | 6+ months sales history, $10K+/mo revenue |
| Cost | Factor rate 1.1–1.4× (equivalent to 10–40% APR) |
| Speed | 24–72 hours |
| Best for | Scaling sellers with proven products |
Wayflyer specializes in e-commerce and integrates with Amazon Seller Central. They analyze your sales data directly and offer funding based on projected revenue.
2. Clearco (formerly Clearbanc)
| Feature | Details |
|---|---|
| Amount | $10K–$10M |
| Requirements | 6+ months history, consistent revenue |
| Cost | 6–12% of funding amount (flat fee) |
| Speed | 24–48 hours |
| Best for | Ad spend + inventory funding |
3. Kickfurther
| Feature | Details |
|---|---|
| Amount | $20K–$1M+ |
| Requirements | Proven sales, purchase order from supplier |
| Cost | 1–3% monthly (crowdfunded by investors) |
| Speed | 1–2 weeks |
| Best for | Large inventory orders, community-backed funding |
4. AccrueMe
| Feature | Details |
|---|---|
| Amount | $5K–$1M |
| Requirements | Amazon sellers only, 6+ months history |
| Cost | Profit-sharing model (no fixed interest) |
| Speed | 3–5 days |
| Best for | Sellers wanting a partner, not a lender |
5. Onramp
| Feature | Details |
|---|---|
| Amount | $5K–$3M |
| Requirements | E-commerce sellers, 3+ months history |
| Cost | Factor rate 1.15–1.35× |
| Speed | 24–48 hours |
| Best for | Fast funding for proven sellers |
Inventory Financing vs. Credit Cards
| Factor | Inventory Financing | Credit Cards |
|---|---|---|
| Collateral | Inventory | None (personal guarantee) |
| Amount | $10K–$1M+ | $5K–$50K |
| Cost | 10–40% equivalent APR | 0% intro, then 18–27% |
| Speed | 1–7 days | Instant |
| Personal guarantee | Sometimes no | Usually yes |
| Best for | Large orders ($25K+) | Small orders ($15K) |
When to Use Inventory Financing
Use It When:
- You have a proven product with consistent sell-through
- You need $25K+ for a single purchase order
- Your credit cards are near their limits
- You want to preserve cash for advertising and operations
- You have a seasonal spike (Q4) requiring 3–5× normal inventory
Don't Use It When:
- The product is unproven or has high return rates
- The financing cost exceeds your profit margin
- You don't have a clear sell-through timeline
- Amazon has recently restricted your category or brand
How to Qualify for Inventory Financing
- Sales history: Most lenders want 3–6 months of consistent Amazon sales
- Revenue minimums: Typically $10K–$20K/month
- Profit margins: 20%+ gross margin preferred
- Clean account health: No recent suspensions, high ODR, or policy violations
- Supplier relationship: Some lenders require invoices from established suppliers
The True Cost of Inventory Financing
Don't be fooled by "low monthly rates." Calculate the annualized cost:
| Lender | Quoted Rate | Term | Total Cost on $50K | Equivalent APR |
|---|---|---|---|---|
| Wayflyer | 1.2× factor | 6 months | $10,000 | ~40% |
| Clearco | 8% flat fee | 6 months | $4,000 | ~28% |
| Kickfurther | 2%/month | 6 months | $6,000 | ~48% |
| Chase Ink (0% APR) | $0 | 12 months | $0 | 0% |
Key insight: For amounts under $15K, 0% APR credit cards are almost always cheaper. For $25K+, inventory financing becomes competitive when you factor in credit card stacking complexity.
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Download Free →Frequently Asked Questions
Does inventory financing require a personal guarantee?
Some lenders (Wayflyer, Clearco) offer no-PG options for established sellers. Others require a PG for newer businesses.
What happens if my inventory doesn't sell?
You still owe the money. Some lenders work with you on restructuring, but most will enforce repayment. Never finance inventory you can't afford to lose.
Can I use inventory financing for multiple products?
Yes, but lenders prefer funding proven SKUs. New products may require separate approval or lower advance rates.
Is inventory financing considered debt?
Yes. It appears as a liability on your balance sheet and may affect future borrowing capacity.
This is informational, not financial advice. Vendor terms, card offers, and bureau reporting policies change, and a general guide can't account for your specific credit history or business situation. Confirm current terms directly with the issuer or vendor before applying. See our editorial policy for how we verify what we publish.