A call or the request form reaches Boldwick, and the stock order then goes to funding partners; any terms are theirs to set.
Inventory financing buys goods for resale and is paid back in fixed installments. The stock can serve as collateral. Every example on this page uses invented figures, computed from the printed inputs.
At a glance
- What it buys
Goods the business resells: boxed games, shoes, furniture, over-the-counter stock
- How payments run
Fixed installments over the term in the offer, whatever the sales pace
- What can secure it
The stock itself, if the partner takes it as collateral
What is inventory financing? A Sevierville, TN toy and game store restocking its shelves
Inventory financing is a loan whose whole purpose is goods the store will sell again. It differs from a working capital loan, which pays bills such as payroll or rent, and from equipment financing, which pays for machines a business keeps for years. The loan follows the stock: it pays for an order, and the order is what the store sells to make the payments.
Take a toy and game store in Sevierville, TN that needs board games, puzzles and plush stock to refill bare shelves. Illustration only, invented figures: the store finances a $16,400 restock at 12.15% over 9 months. Each installment is $1,915.71; across the nine of them the store hands over $17,241.39, which includes $841.39 of interest.
Small shops make up a large share of that trade: of the 730 retail trade establishments in Sevier County, TN, 39.7% had fewer than five employees in 2023 (County Business Patterns). The toy store in this example is drawn at that size.
Purchase order financing example, set beside an inventory loan for a Sevier County, TN sign shop
Purchase order financing is a different arrangement. A funder pays the supplier for goods a customer has already ordered, the supplier ships, and the funder is paid when the customer pays the invoice. It is not one of the six products Boldwick arranges; an inventory loan or working capital can cover the same supplier bill instead.
Illustration only, invented figures: a sign shop in Sevier County, TN wins a $38,500 wayfinding order and owes its supplier $14,600 for panels, vinyl and posts before work can start. The customer pays 60 days after delivery.
| Route | How the cost is set | Cost to the sign shop |
|---|---|---|
| Purchase order funder | An invented 2.5% of the bill for each 30 days, two periods | $730.00 |
| Inventory loan | 13.35% over 6 months, $2,528.95 each month | $573.70 of interest |
In this invented case the loan costs $156.30 less than the PO fee, but the shop makes six monthly payments starting before the customer pays, while the PO funder waits for the invoice. Which route fits depends on cash on hand during those 60 days.
How does inventory financing work, month by month, for a Sevierville, TN shoe store order?
A shoe store in Sevierville, TN orders hiking boots, sandals and running shoes from three brands at once. Here is how inventory financing for that order moves from quote to the last installment:
- The store totals the supplier invoices and notes when each shipment lands.
- The owner calls (865) 326-1090 or sends the request form, and the order is talked through on the call.
- The shoe store's file then goes from Boldwick to funding partners, any of whom may want bank statements, recent sales reports and the brand invoices.
- If an offer is accepted, the partner pays out the money, to the store or straight to the supplier, as the offer states.
- Monthly installments start, and each one pays some interest and some principal.
| Month | Payment | Interest | Principal | Balance after |
|---|---|---|---|---|
| 1 | $2,024.15 | $225.15 | $1,799.00 | $21,001.00 |
| 2 | $2,024.15 | $207.38 | $1,816.77 | $19,184.23 |
| 3 | $2,024.15 | $189.44 | $1,834.71 | $17,349.52 |
The payment stays at $2,024.15 for the whole year; the interest part shrinks as the balance falls. The twelve installments on this invented loan come to $24,289.80.
Inventory financing companies: two invented offers a Sevier County, TN furniture store can line up
Boldwick is not an inventory financing company. Its job ends at handing a store's request to funding partners; each partner that answers names its own rate, term and conditions. Comparing two of them takes more than the monthly figure.
A furniture store in Sevier County, TN wants floor models and backstock for a new showroom wing it is already leasing. It is one of 39 furniture and home furnishings stores the county counted in 2023 (County Business Patterns, NAICS 442).
| Offer | Monthly payment | Total of payments | Interest |
|---|---|---|---|
| A: 11.4%, 18 months | $2,124.63 | $38,243.34 | $3,243.34 |
| B: 12.6%, 12 months | $3,119.54 | $37,434.48 | $2,434.48 |
In this invented comparison, Offer B carries the higher rate yet costs $808.86 less in interest, because the money is out for six fewer months. It also asks $994.91 more each month. Beyond the table, the store can compare:
- Fees charged at closing or each month.
- Whether the partner files a lien on the stock or on all business assets.
- What an early payoff saves under the offer.
- Whether the owner must sign a personal guarantee.
An inventory financing example in dollars: over-the-counter stock at a Sevier County, TN pharmacy
Illustration only, invented figures: an independent pharmacy in Sevier County, TN finances $19,250 of over-the-counter stock: cold remedies, vitamins, first-aid supplies and pain relievers. At 12.05% over 10 months the pharmacy pays $2,032.91 a month, $20,329.10 in all, so the order costs $1,079.10 more than paying from the account.
What that buys is cash left in the account for payroll and rent while the stock sells. The trade-off is fixed: installments come due on schedule even when the shelves take longer to empty than planned, so a sensible order size follows sales the pharmacy has already seen, not hoped for.
Prescription drug purchases follow the same arithmetic, though a partner may treat them differently from shelf stock; that is a question for the partner review.
The article on gift and apparel shop stock prices a printed shirt order on a six-month inventory loan and a size run on a credit line.
By Boldwick Funding Group ยท Updated
