Hypothetical example: two-stage order funding worksheet, 3,000 units at $20
| Stage | When | Amount | Paid from |
|---|---|---|---|
| Deposit (30% of $60,000) | At order confirmation | $18,000 | Cash on hand |
| Final balance (70%) | Before goods ship | $42,000 | Funding |
| Freight and handling | On arrival | $3,600 | Funding |
| Funding requested | $45,600 | ||
| Hypothetical total repayment | 4 monthly payments of $12,540 | $50,160 | Sales receipts |
| Hypothetical funding cost | $50,160 minus $45,600 | $4,560 | |
| Landed cost per unit | ($60,000 + $3,600) / 3,000 | $21.20 |
All figures are hypothetical. Replace the repayment and cost lines with the numbers in your written offer, and expect your own deposit percentage and freight to differ.
When is the deposit due, and should it be funded?
The deposit is usually due when you confirm the order, often before any funding decision could realistically be made, so most owners pay it from cash and save funding for the balance.
Deposits are non-negotiable on many custom or overseas orders. In the worksheet above, the 30% deposit is $18,000 on a $60,000 order. If your cash cannot cover it, say so on the application and attach the supplier quote so the funder sees the whole order, not just one payment.
Ask the supplier two questions before you wire anything: is the deposit refundable if the order is cancelled, and does the quote hold its price until the balance is paid? Those answers decide how much risk you carry between stages.
How does the production milestone affect timing?
The balance usually comes due when production finishes or when the goods are ready to ship, so your funding needs to be in place before that milestone, not after it.
Ask the supplier for the production schedule in writing. A typical rhythm is order confirmation, production, inspection, then a balance request. If production runs four to six weeks, you have time to apply and complete underwriting. If the supplier can release goods sooner, the window shrinks.
Funders typically give a decision within 24 hours of a complete application, but funding time varies by product, so apply while production is still underway. Our guide on funding a bulk inventory purchase covers the wider process.
What about the balance and freight?
Fund the balance and the freight together, because goods that are paid for but stuck at origin or in customs earn nothing.
Freight, duties, insurance and handling are easy to leave out of the first estimate. In the example they add $3,600, which moves the landed cost from $20.00 to $21.20 per unit. Ask your freight forwarder for a written estimate, and add a cushion if the route has changed in the past year.
Short-term working capital for inventory deals is the product most often reviewed for a balance payment of this kind. A funder may also ask whether the funds go to the supplier directly, so have the supplier's payment instructions ready.
How do sales receipts line up with the payment schedule?
Compare your first month of expected sales to the first repayment: if the goods cannot realistically earn the payment in time, change the structure before you accept.
In the example, 3,000 units sell at $36 each for $108,000 in total. If 1,000 units sell each month, that is $36,000 a month against a $12,540 payment, which leaves room. If the goods arrive late or the first sales take six weeks, the early payments still need to come from somewhere, so keep a reserve.
Total outlay is $18,000 plus $45,600 plus the $4,560 hypothetical cost, which is $68,160. Against $108,000 in sales, that leaves $39,840 before other operating costs.
Which documents should you gather?
Gather the supplier's invoice or proforma, the payment terms showing both stages, and recent bank statements; the order paperwork matters as much as your own financials.
- The supplier quote or purchase agreement, showing deposit percentage and due dates
- Proof the deposit was paid, if it already has been
- Recent business bank statements, government-issued ID and a voided business check
- A freight estimate and expected arrival date
Larger requests may add tax returns or financial statements. When you are ready, start the online application, describe both stages, and check the working capital for inventory purchases page for what the funder will review.
Frequently asked questions
Can I fund both the deposit and the balance?
Yes, you can describe both payments in one application. If the deposit is due before a decision is practical, most owners pay it from cash and request funding for the balance and freight. The funder reviews the file and sets terms.
Does the supplier need to be paid directly?
Funders may ask for the supplier's payment details or an invoice. Requirements differ by product and funder, so keep the supplier's wire or payment instructions on hand and mention the payment method in your application.
What if the shipment date moves?
Tell the funder early. Production delays shift when sales cash arrives, which can strain the first repayment. A written update from the supplier helps, and so does a cash reserve sized for a few weeks of slippage.
How much should I request?
Request what the balance, freight and duties add up to, minus what your reserve allows you to pay from cash. Avoid padding the request; the cost is repaid in full whether or not you use every dollar.
Will checking my options affect my credit score?
Checking options does not affect your personal credit score, and there is no obligation to accept an offer. Compare the written terms against your worksheet before you decide.
Describe your purchase and deadline
Share the order, both payment dates and your timeline in one application.
Updated October 17, 2026 · Prime Funding Now Funding Team