Stocking Finance, also known as Inventory Finance, is a type of funding that allows businesses to purchase inventory or stock without immediately using their cash reserves. The finance provider pays the supplier on behalf of the business, and the business repays the finance provider over an agreed period, usually as the stock is sold.
Stocking Finance is particularly beneficial for businesses that need to maintain high levels of inventory but prefer not to tie up their capital in stock. It is ideal for businesses in retail, car dealerships, wholesale distribution, and manufacturing, where the ability to quickly purchase and replenish stock is crucial to meeting customer demand.