Hypothetical example: three-bucket equipment, stock and setup budget, $120,000
| Bucket | Items | Amount | Question to ask |
|---|---|---|---|
| 1. Equipment | Racking $26,400; used forklift $21,000 | $47,400 | How long will it last? |
| 2. Stock | Inventory to fill the racking | $64,000 | How fast will it sell? |
| 3. Setup | Racking installation $5,200; operator training and safety signage $1,800; floor-load inspection $1,600 | $8,600 | Is it in the quote? |
| Total | $47,400 + $64,000 + $8,600 | $120,000 |
All figures are hypothetical. Use your own quotes, and add the funding cost from each written offer as a separate dollar line.
What belongs in the asset purchases bucket?
The asset bucket holds items that stay useful for years, such as racking and a forklift, so they are usually the purchases a longer repayment period suits.
In the example, racking is $26,400 and a used forklift is $21,000, for $47,400. Get written quotes that state the load rating, lead time and delivery, and for a used forklift ask for the service record and hours.
Used equipment may come from a dealer or an auction, and the payment deadline there can be short. Read equipment financing for auction and used equipment for how funders look at it. Ask your accountant how equipment purchases fit your books.
How should you plan the inventory purchase?
Inventory is the bucket that turns into sales, so size it to how quickly it will sell rather than to how much racking you now have.
The example puts $64,000 into stock. New racking invites over-ordering, because empty bays feel like lost money. They are not. Fill the racking in stages, starting with the products you already move every week, and tie each purchase to customer orders or reorder history.
Short-term products tend to fit stock that sells within weeks or months, such as working capital for inventory deals. A line of credit can suit repeat restocking. Check the total repayment on each written offer against your sell-through plan.
What does installation and safety setup add?
Setup costs are the ones owners forget: racking installation, operator training, signage and any floor-load or fire inspection are real dollars with real deadlines.
The example allows $5,200 for installation, $1,800 for operator training and safety signage, and $1,600 for a floor-load inspection, together $8,600. Confirm whether the racking quote includes installation, and whether your landlord or insurer requires an inspection before you load pallets.
Build a short checklist: confirm the floor can carry the loaded racking, confirm the aisle width suits the forklift you chose, check that the insurer knows about the new equipment, and book the installer before the stock order is placed. Each missed item can delay opening the space by days, and every day of delay is a day you pay for racking and stock that are not yet earning.
Racking cannot hold stock until it is installed and cleared, and a forklift cannot be used until the operator is trained. Schedule these steps in order so the inventory does not arrive early and sit on the floor.
How do you match structures to use and timing?
Match each bucket to how long it lasts: longer repayment for equipment, shorter repayment for stock, and cash or a small add-on for setup.
- Equipment, $47,400: lasts years, so a longer period can fit.
- Stock, $64,000: sells in weeks or months, so a shorter period can fit.
- Setup, $8,600: small and due first, often paid from cash or included in the equipment quote.
One request for the full $120,000 can be simpler, but it may stretch stock repayment over the life of the racking. Separate requests can match timing more closely, at the cost of more paperwork. Either way, give the funder the three amounts. You can submit them together on the online application.
Prime typically gives a decision within 24 hours of a complete application, and funding time varies by product. For a larger warehouse project that includes a lease, see funding a warehouse lease deposit and fit-out.
Frequently asked questions
Should racking, a forklift and inventory be one request?
It can be, but many owners split them by purpose, because equipment lasts years and stock sells in weeks. Showing the three dollar amounts lets a funder see what each is for. Offers vary by product and by the strength of the business.
Can a business with no sales history use this?
This guide is for operating businesses with revenue. If the business is not yet selling, funders have little to review, so speak with your accountant about other options before you plan a warehouse buildout.
Is used forklift financing handled differently?
Used equipment is reviewed like other equipment, with a quote or listing and the seller's details. Dealers and auctions may set short payment deadlines, so include the deadline in your application along with the price.
Do installation costs count in the request?
They can. Many owners include installation, training and inspections as their own line. Ask the racking supplier whether installation is already in the quote, so the same cost is not counted twice.
What documents should I gather?
Recent business bank statements, government-issued ID, a voided business check, and the quotes for racking, forklift and stock. Larger or longer requests may add tax returns or financial statements.
Buying racking and a forklift?
Describe your purchase and deadline, and attach each quote.
Updated October 17, 2026 · Prime Funding Now Funding Team