| Lender | User ratings | Best for… | Max. loan amount | Term length | Min. credit score | Time in business | |
|---|---|---|---|---|---|---|---|
 | Short-term loans | $250,000 | 18 to 24 months | 625 | 12 months | Get business loan offers | |
 | User ratings coming soon | Lines of credit | $250,000 | 6 or 12 months | 625 | 24 months | Get business loan offers |
 | Startups | $150,000 | 3 or 12 months | 600 | Six months | Get business loan offers | |
 | User ratings coming soon | Low-revenue companies | $250,000 | 6, 12, 18 or 24 months | 660 | 12 months | Get business loan offers |
 | Bad credit | $1,500,000 | Up to 18 months | 570 | Six months | Get business loan offers | |
 | Same-day funding | $600,000 | 3 to 24 months | 500 | Six months | Get business loan offers |
Learn more about how we chose our picks.
| Loan amounts | $5,000 to $250,000 |
| Starting interest rate | 27.30% (for at least 5% of customers)* |
| Term length | 18 to 24 months |
| Minimum credit score | 625 |
| Minimum time in business | 12 months |
| Minimum annual revenue | $100,000 |
Business checking account is required
Doesn’t fund all industries
Loans not available in North Dakota
With relatively short repayment terms and varied loan amounts, OnDeck’s term loans are a solid choice for small businesses looking for short-term inventory loans. Depending on your business’s location, you could receive same-day funding; otherwise, the funding timeline typically takes two to three business days. Repayment options include fixed daily or weekly installments.
However, OnDeck’s interest rates tend to run high, with average rates for a term loan around 60.90% APR. Since the terms are relatively short, make sure your business budget can handle the repayment schedule.
Read our OnDeck review.
| Loan amounts | $6,000 to $250,000 |
| Starting interest rate | 6.20% |
| Term length | 6 or 12 months |
| Minimum credit score | 625 |
| Minimum time in business | 24 months |
| Minimum annual revenue | $480,000 |
High annual revenue requirement
Short repayment terms
Not available in Nevada, North Dakota or South Dakota
If you’re looking for an inventory line of credit to cover occasional and recurring expenses, Bluevine could be a good fit. With a fast application process and potential for same-day funding, you could borrow up to $250,000 as needed, only paying interest on the withdrawn amounts.
However, Bluevine’s strict eligibility requirements can be a challenge to meet: Businesses need to operate for at least 24 months and generate a minimum of $480,000 in annual revenue to qualify, making this lender better suited for high-revenue companies.
Read our Bluevine review.
| Loan amounts | Up to $150,000 |
| Starting interest rate |
|
| Term length | 3 or 12 months |
| Minimum credit score | 600 |
| Minimum time in business | Six months |
| Minimum annual revenue | $100,000 |
Short repayment terms
Offers only one product
High annual revenue requirement
Newly established businesses can consider a startup business line of credit from Fundbox to help cover inventory and other essential startup expenses. While its credit limit only goes up to $150,000, Fundbox’s less stringent eligibility requirements can make it easier for startups to qualify after only six months in operation.
Note that repayment terms are significantly shorter than our other picks, potentially putting a strain on your startup budget. Additionally, companies must earn at least $100,000 in annual revenue to qualify. You could receive funds as quickly as the next business day if approved.
Read our Fundbox review.
| Loan amounts | $2,000 to $250,000 |
| Starting interest rate |
|
| Term length | 6, 12, 18 or 24 months |
| Minimum credit score | 660 |
| Minimum time in business | 12 months |
| Minimum annual revenue | $36,000 |
Personal guarantee required
Confusing fee structure that varies based on term length
Doesn’t fund all industries
With a low annual revenue requirement of $36,000 and only 12 months of business history needed, the American Express Business Line of Credit could be an ideal option for low-revenue companies. Credit lines range from $2,000 to $250,000 and can cover inventory purchases, payroll services, equipment repairs and seasonal dips in revenue.
You can withdraw up to your credit limit as often as needed, only paying a small fee for the amounts you use. Business owners with an American Express small business credit card might receive pre-approval for a business line of credit — log into your account today to explore your options.
| Loan amounts | $5,000 to $1,500,000 |
| Starting interest rate | 1.10 to 1.40 factor rate |
| Term length | Up to 18 months |
| Minimum credit score | 570 |
| Minimum time in business | Six months |
| Minimum annual revenue | $180,000 |
High annual revenue requirement
Only two funding products available
Doesn’t help build business credit
Businesses with a limited credit history can consider a bad credit business loan with Fora Financial. With a low minimum credit score of 570 and only six months of operation required, you could receive up to $1,500,000 within 24 to 48 hours after approval. Funds can be used for inventory, equipment, maintaining cash flow, hiring staff and more.
While Fora Financial offers a discount for paying off your debt early, on-time payments don’t help you build business credit. To qualify for inventory lending, companies must earn at least $180,000 in annual revenue and have no open bankruptcies.
Read our Fora Financial review.
| Loan amounts | $5,000 to $600,000 |
| Starting interest rate | 1.11 factor rate |
| Term length | 3 to 24 months |
| Minimum credit score | 500 |
| Minimum time in business | Six months |
| Minimum annual revenue | $180,000 |
High annual revenue requirement
Charges a one-time 2.50% origination fee
Most products provided by third-party partners
Credibly is one of our top picks for a same-day business loan with flexible eligibility requirements and funds going as high as $600,000. As a working capital loan, the loan proceeds can cover various business expenses like inventory, payroll services, marketing campaigns, hiring staff and more.
Note that Credibly’s factor rate makes it hard to compare with competing offers, and the added origination fee could make this a more expensive option. To qualify, companies must operate for at least six months and generate a minimum of $180,000 in annual revenue.
Read our Credibly review.
Inventory financing is a type of small business loan that helps small business owners buy essential inventory for their company. Since the inventory acts as collateral to reduce lender risk, you typically don’t have to pledge personal or business assets.
Inventory financing can also refer to a type of secured business loan where you use your business inventory as collateral to fund short-term business expenses like payroll and cash-flow gaps. Companies that require a lot of inventory, such as retail businesses and wholesalers, may be best suited for inventory financing.
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Business owners use inventory financing to purchase essential supplies and products they can then use to turn a profit. Small or mid-sized companies that might struggle to qualify for traditional small business financing or can’t provide any assets for collateral are likely candidates for inventory financing.
Inventory financing can be a more costly way to finance business expenses. Starting interest rates can range from 3% to 35.40%, with factor rates starting as low as 1.10. While you can likely secure a better rate with a traditional or SBA lender, the higher price for inventory financing might be worth it to get the funds you need today.
Low-credit borrowers might have better luck qualifying for inventory financing than traditional small business financing since the inventory acts as collateral to help reduce lender risk. While you will still need to undergo a credit check when applying for inventory financing, some lenders extend credit to those with scores as low as 500.
