How does the order amount compare with your available cash?
Start with landed cost, which is the supplier price plus freight and receiving, then subtract the cash you can safely contribute. The remainder is the amount to explore funding for, and it is usually smaller than the headline order total.
Do not count cash you need for payroll, rent or taxes. A purchase that leaves the business short next month trades one problem for another. Reviewers also read your bank statements, so the figure you state should match what they will see.
If the order is a regular restock, compare it with past orders. A first-time jump in size deserves a short explanation of why demand supports it. Our overview of working capital for inventory deals lays out how the product is generally used.
Hypothetical example: one-order funding brief for a 1,200-unit order
| Line | Calculation | Amount |
|---|---|---|
| Supplier quote | 1,200 units x $40 | $48,000 |
| Freight and receiving | Quoted separately | $2,400 |
| Landed cost | 48,000 + 2,400 | $50,400 |
| Cash you can contribute | From operating account | $18,000 |
| Amount to fund | 50,400 - 18,000 | $32,400 |
| Expected sales | 1,200 units x $72 | $86,400 |
| Gross margin before funding cost | 86,400 - 50,400 | $36,000 |
| Funding cost | Total repayment minus cash received, from your written offer | $______ |
Supplier quote checklist
- Unit price, quantity and total
- Deposit amount and due date
- Final balance and due date
- Shipping terms and who pays freight
- Quote expiration date
- Return or cancellation policy
Every figure above is hypothetical; fill in the blank funding cost only from a written offer you have actually received.
Should you pay a supplier deposit or the full amount?
Pay a deposit when the supplier allows staged payment and your cash flow can cover the final balance on time; pay in full when the supplier gives a real discount for it or will not ship otherwise. The right choice depends on the dollars, not the habit.
In the hypothetical brief, a 30% deposit would be $14,400 of the $48,000 quote, leaving $33,600 due before shipping. Funding for only the final balance can be a smaller request than funding the whole order.
- Deposit now, balance later: smaller first outlay, but a second deadline to plan for.
- Full payment up front: one deadline, and sometimes a better unit price.
Ask the supplier which structure they prefer, and whether paying early earns a discount worth comparing against the funding cost.
How do you match the review to expected sell-through?
Funders want to see how the inventory turns back into cash. Give a realistic sales window, such as ten weeks, and show it against your recent monthly revenue, so the repayment schedule can be judged against your actual selling pace.
Use your own history. If a similar product sold 400 units a month, a 1,200-unit order implies about three months, not three weeks. Write that down plainly rather than hoping a reviewer assumes the best.
The case for a fast-moving order is stronger when it replaces stock you already sell. The case is weaker for untested products or goods with style or expiration risk. Our guide to bulk inventory purchase funding covers the sell-through math in more depth.
How do you compare the written payment schedule?
When an offer arrives, compare three things: the total repayment minus the cash received, how payments are scheduled, and whether the schedule fits your sales window. Rate, term and payment schedule vary by product and by the business, so read each offer separately.
- Write down the total repayment and subtract the cash you will receive. That is the funding cost in dollars.
- Check whether payments are daily, weekly or monthly, and compare them with your cash flow in the selling period.
- Subtract that cost from your gross margin. In the hypothetical brief, $36,000 of gross margin is reduced by whatever the offer costs.
- Ask your accountant how the cost is treated in your books.
You are under no obligation to accept an offer, and checking options does not affect your personal credit score. When you are ready, apply online with the quote and your recent statements.
Frequently asked questions
What can working capital for inventory cover?
It can fund the cost of stock for resale, including the supplier's invoice and sometimes freight. Eligibility and structure vary by product and funder, so tell the reviewer exactly what the money will purchase.
How much of the order should I fund myself?
There is no fixed share. Contributing some cash shrinks the request and shows commitment, but never use money you need for payroll, rent or taxes. Size the gap using landed cost minus safe cash.
What documents help the review?
A supplier quote with price, quantity and dates, recent business bank statements, a government-issued ID and a voided business check are commonly requested. Larger requests may add tax returns or financial statements.
How is the cost shown?
Compare offers in dollars: total repayment minus cash received. Rate, term and payment schedule vary by product and business, so the written offer is the only source for your actual numbers.
Does applying affect my credit score?
Checking your options does not affect your personal credit score, and there is no obligation to accept an offer. Review the written terms before deciding.
Size your next order with us
Apply once online with your supplier quote; you decide whether to accept any offer.
Updated October 17, 2026 · Prime Funding Now Funding Team