Bellcrest Lending Group, a small-business funding service in Fond du Lac, Wisconsin, explains inventory financing: money for stock, parts and materials bought before they sell, with the goods often pledged as security. The page covers stock and floor plan financing, the order-to-sale cycle, what partners review and how to compare offers. Partners set advance amounts and terms.
At a glance
- Retail employers
298 employer locations, Fond du Lac County, WI (CBP 2023)
- Wholesale employers
113 employer locations, Fond du Lac County, WI (CBP 2023)
- Usual collateral
The inventory itself
- Who decides
The funding partner
What is inventory financing when the stock sits in Fond du Lac County, WI?
Inventory financing is a loan or credit line used to buy goods for resale or for use in jobs, with those goods pledged as collateral. The partner lends against part of the inventory's value and is repaid as the goods sell. It fits stores, parts counters, distributors and trades that keep materials on hand.
Fond du Lac County, WI had 298 retail and 113 wholesale employer establishments in 2023 (County Business Patterns), plus 656 retail businesses without paid employees in Nonemployer Statistics 2024, a separate count.
How does stock financing work?
Stock financing works on the value of what sits on the shelf. A partner reviews the inventory list, how quickly items sell and how easily they could be resold, then sets a borrowing limit, usually a share of cost rather than retail price. Goods that sell slowly or spoil carry less value to a partner than goods that turn steadily.
Expect periodic reporting: an updated stock list, or a borrowing-base certificate that ties the amount you may borrow to what is on hand.
Inventory financing for small business shelves and parts rooms in Fond du Lac, WI
For a small shop, the practical question is timing. When does the order have to be paid, when will the goods sell, and when does that cash reach the account? Inventory financing bridges the first date to the last.
Illustration only, invented figures: a store places a $36,000 order due on delivery and expects to sell it over four months at $9,000 of cost value a month. If the agreement requires repayment as goods sell, the balance falls by $9,000 a month and is cleared in four months (our arithmetic), with interest charged on the declining balance.
How does floor stock financing work?
Floor stock financing, often called floor planning, finances big-ticket items one unit at a time: vehicles, boats, trailers, large equipment or appliances. Each unit is tied to its own financed amount. When the unit sells, the amount financed for that unit is paid off. The partner may audit the floor to confirm the units are still there.
Floor plans may charge a fee per unit and step up the cost the longer a unit sits unsold. Ask for the schedule.
How does inventory financing work from purchase order to sale in Fond du Lac, WI?
- You place an order with a supplier and send the invoice or purchase order with the request.
- The partner reviews your sales history and the goods, then sets a limit.
- The partner pays the supplier, or advances funds to you to pay it.
- As goods sell, you repay the amount financed plus interest and fees.
- Reporting keeps the partner's view of the inventory current.
Some partners pay suppliers directly, which keeps the money tied to the goods. Others fund your account, and the reporting does the tracking.
Loan to purchase inventory for Fond du Lac County, WI businesses
A loan to purchase inventory can also be a plain term loan or a draw on a line of credit, without the goods as formal collateral. The difference is reporting and security: inventory financing watches the stock, while a line watches the account.
Store owners can compare this page with retail funding notes, and owners of fuel and convenience stops with gas station financing. Bars buying an opening order can see business loans for bars.
Records a Partner Reads Before Funding Stock in Fond du Lac County, WI
- A current inventory list with cost, quantity and age of each item.
- Sales history by month, which shows how quickly stock turns.
- Each supplier invoice or purchase order tied to the financed stock.
- Business bank statements showing deposits from sales.
- Liens already on the stock, a supplier's security interest included.
A supplier that sells on credit may already hold a claim on the goods it shipped you. Partners check for that before lending against the same stock, so disclose supplier terms up front.
Pricing an Inventory Offer in Fond du Lac, WI
Ask for the advance as a share of cost, the interest or fee charged per month or per unit, any audit or reporting fees, and what happens to unsold goods at the end of the term. Then compute the total dollars for one full turn of the stock.
For a shop with repeating orders, compare against a revolving business line; for all six types, the comparison table. County retail counts sit on the Fond du Lac, WI page.
By Bellcrest Lending Group · Updated