What is the lot cost, and what condition are the goods in?
Begin with the lot price, the unit count and the condition: new in box, open box, returns, overstock or damaged. Condition drives what you can charge, so it matters more than the discount percentage on the seller's sheet.
Ask for a manifest listing each item, quantity and grade. A lot described only as "assorted" is hard to value, and it is hard for a reviewer to assess too. If you can inspect a sample, do.
Then compare the per-unit price against what you normally pay for the same or similar goods. In the hypothetical lot, $20 a unit is the price; whether that is good depends on the $34 you expect to sell it for. Our guide to closeout inventory financing explains why closeouts are priced low and what risk comes with that.
Hypothetical example: $40,000 closeout lot summary
| Line | Calculation | Amount |
|---|---|---|
| Lot price | 2,000 units x $20 | $40,000 |
| Freight | Seller quote | $1,800 |
| Handling and repackaging | Your estimate | $1,200 |
| Landed cost | 40,000 + 1,800 + 1,200 | $43,000 |
| Main sales | 1,700 units x $34 | $57,800 |
| Markdown sales | 300 units x $18 | $5,400 |
| Total revenue | 57,800 + 5,400 | $63,200 |
| Hypothetical funding cost | Total repayment minus cash received | $3,000 |
| Net result | 63,200 - 43,000 - 3,000 | $17,200 |
All numbers are hypothetical, including the $3,000 funding cost; use the dollar figure from your own written offer.
Is there margin left after freight and funding?
A closeout is worth funding only if profit remains after landed cost, markdowns and the funding cost in dollars. If the lot works only when everything sells at full price, the deal is thinner than it looks.
In the hypothetical summary, a $40,000 lot becomes $43,000 landed after freight and handling. Selling 1,700 units at $34 and 300 at a marked-down $18 produces $63,200. After a hypothetical $3,000 funding cost, $17,200 remains.
Stress-test it. If only 1,400 units sold at $34 ($47,600) and the other 600 went at $18 ($10,800), revenue would be $58,400, and the net result would be 58,400 minus 43,000 minus 3,000, or $12,400. Still positive, but a smaller cushion.
- Use a conservative selling price.
- Include storage if the lot will sit.
- Count the weeks of sales before payments come due.
How do the seller deadline and documentation affect the request?
Closeout sellers often want payment within days, so the deadline and the paperwork are what you organize first. A written offer from the seller, with price, quantity, condition and due date, is the core document for the review.
Prime typically gives a decision within 24 hours of a complete application, but funding time varies by product, so confirm the seller's date is realistic. If it is not, ask whether a small deposit can hold the lot or whether you can buy part of it.
- Seller's written offer or invoice
- Manifest or item list
- Recent business bank statements
- Government-issued ID and a voided business check
The upfront cost of a mistake is high with as-is goods, so ask your attorney or accountant about any return, title or tax questions before you commit.
Is the lot a fit, and how do you apply?
The lot is a fit when your customers already buy this kind of product, the margin holds up under conservative assumptions and you can sell most of it before payments become heavy. If any of those fails, skip the lot.
Good signs include a discontinued version of something you already sell and a neutral, non-seasonal item. Cautions include unfamiliar categories, short-dated goods and no manifest. A working capital for inventory deals product is usually the first one to review for a one-time lot, while buyers who see closeouts often may look at a credit line.
When the numbers work, apply online with the seller's offer and your statements. No fixed minimum time in business, revenue or credit score is published; each request is reviewed case by case. You have no obligation to accept an offer, and checking options does not affect your personal credit score.
Frequently asked questions
Is closeout inventory a good use of business funding?
It can be, when the discount is real, demand exists and margin survives freight, markdowns and the funding cost. It is a poor fit when you need full-price sales on an unfamiliar product.
How do I figure out whether a closeout lot is worth it?
Add freight and handling to the lot price for landed cost. Estimate revenue conservatively, including markdowns, then subtract landed cost and the dollar funding cost from your written offer.
What documents do I need for a closeout request?
The seller's written offer or invoice, a manifest if available, recent business bank statements, a government-issued ID and a voided business check. Larger requests may add tax returns or financial statements.
What if the seller's deadline is very short?
Ask whether a deposit can hold the lot, whether you can buy part of it or whether the date can move. A decision typically comes within 24 hours of a complete application, but funding time varies.
How much can I request?
Prime reviews requests from $25,000 to $5,000,000, depending on the product and the business. Request the amount of the lot plus required fees, less any cash you contribute.
Test your closeout lot
Apply once online with the seller's offer; there is no obligation to accept.
Updated October 17, 2026 · Prime Funding Now Funding Team