Hypothetical example: smaller order versus full minimum of 2,500 units
| Item | Smaller order | Full minimum, funded |
|---|---|---|
| Units | 1,000 | 2,500 |
| Price per unit | $17.00 | $14.00 |
| Goods plus freight | $17,000 + $1,000 = $18,000 | $35,000 + $2,500 = $37,500 |
| Landed cost per unit | $18.00 | $15.00 |
| Cash used | $18,000 | $12,000 |
| Reserve left (of $22,000) | $4,000 | $10,000 |
| Funding amount | None | $25,500 |
| Hypothetical funding cost | None | $3,060 |
| Storage at $300 a month | 2 months, $600 | 5 months, $1,500 |
| Revenue at $30 per unit | $30,000 | $75,000 |
| Profit after these costs | $11,400 | $32,940 |
Hypothetical numbers at a pace of 500 units a month; the funded column assumes $28,560 total repayment on $25,500 received. Use your own quotes and written offer.
What does the minimum order do to your unit economics?
A minimum order is worth it only when the saving per unit is large enough to cover the extra stock you must carry and sell.
In the example, the smaller order costs $18.00 per unit landed, and the full minimum costs $15.00. At a $30 sale price, that lifts the margin from $12 to $15 a unit. The saving is real, but it comes attached to 1,500 more units that have to sell.
Ask the supplier whether the minimum is firm. Some will accept a mixed-SKU order, a split shipment or a short stage of production at a middle price. Retail owners can see how this fits their category on the retail stores page.
How much cash is really available?
Available cash is what you hold minus a reserve for rent, payroll and normal restocking, not the full account balance.
With $22,000 in the bank and a $10,000 reserve target, the example owner can spend $12,000. The full minimum is $37,500, so the gap is $25,500. The smaller order would use $18,000 and leave only $4,000, which is below the reserve and may be the riskier choice despite avoiding funding.
That is why the gap, not the order total, is the number to bring to a funder. Working capital for inventory deals is the product reviewed most often for a gap like this.
Can you store and sell the extra units?
Estimate sell-through honestly: divide the units by your realistic monthly sales and check that the result fits your storage space and the product's shelf life.
At 500 units a month, 2,500 units take five months, and storage adds $1,500 in the example. If the product is seasonal, fashion-driven or perishable, five months can be too long. Count only sales you can point to: current run rate, standing customers, scheduled promotions.
If your pace is half that, the sell window doubles, storage doubles to $3,000, and each month the funded stock sits unsold is a month of repayment from other income. Run the table again at your slow case before you apply.
Smaller order or financing: which is better?
Choose the smaller order when your sell-through is uncertain or the reserve would fall too low; choose financing when the price break is large, the pace is proven and the repayment fits your cash flow.
The funded minimum earns $32,940 in the example against $11,400, and it keeps the $10,000 reserve intact. But those gains depend on all 2,500 units selling at $30. If only 1,500 sell, revenue is $45,000, and after $37,500 goods, $3,060 cost and $1,500 storage, profit falls to $2,940 with 1,000 units still on the shelf.
That downside is why Prime's guides say when a deal is not worth funding. If the slow case still works, move ahead.
What will the funder need to see?
Funders want the supplier's minimum-order terms in writing, your recent bank statements and a clear explanation of how the stock will sell.
- Supplier quote showing the minimum and the unit price tiers
- Recent business bank statements, government-issued ID and a voided check
- Your sales history for similar products
Funders typically give a decision within 24 hours of a complete application. Apply online with the quote attached, or read about the working capital offer first.
Frequently asked questions
What is a minimum order quantity?
It is the smallest quantity a supplier will sell in one order, set in units, cases or dollars. Prices often drop at the minimum, which is why owners consider stretching their cash to reach it.
Can I ask for a lower minimum?
Often yes, especially with a repeat supplier. Ask about mixed products, split shipments or a trial order at a slightly higher price. A written alternative gives you something to compare against financing.
How do I decide if the extra stock is too much?
Divide the units by your realistic monthly sales and check storage and shelf life. If the sell window is longer than you can fund from other income, take the smaller order.
Does financing the gap affect my reserve?
It can protect it. In the example, funding the gap keeps $10,000 in the bank, while the smaller order, paid from cash, leaves only $4,000.
Is there an obligation to accept an offer?
No. You can review the written terms and decide. Checking options does not affect your personal credit score.
Describe your purchase and deadline
Send the supplier quote and your timeline so the funder sees the whole picture.
Updated October 17, 2026 · Prime Funding Now Funding Team