E-commerce inventory financing pays for stock before it sells online. For most brands it takes one of four forms: financing offered inside a sales platform (Shopify, Amazon, PayPal, Stripe), revenue-based financing from an e-commerce lender, inventory-specific funding such as purchase order financing or a consignment arrangement, or a bank or SBA loan. The right choice depends on how long your cash is tied up between paying the supplier and getting paid by customers.
This page covers the options built for online sellers. For how inventory loans work in general, including collateral and advance rates, see our main inventory financing guide, and for all the ways online stores borrow, see e-commerce loans.
Why online sellers need inventory financing
Online retail is a large and growing share of U.S. sales. The U.S. Census Bureau estimates retail e-commerce sales of $340.2 billion in the second quarter of 2026, seasonally adjusted, and says e-commerce “accounted for 17.1 percent of total sales” (Census Bureau).
For an individual brand, the challenge is timing. You may pay a factory deposit, then the balance, then freight and duties, and then wait while goods reach a warehouse or fulfillment center and sell through. That cycle can run for months before sales cover the cost of the order. Inventory financing bridges that gap so a reorder does not have to wait for the last batch to sell out.
The main options
Platform financing
Shopify, Amazon, PayPal and Stripe each offer financing to eligible sellers based on sales data they already hold. Offers appear in your dashboard, paperwork is light, and repayment usually comes out of your sales on that platform. Shopify says it offers “up to $2M in funding,” repaid “with a fixed percentage of your store’s daily sales, but only on days you make sales,” and that US loans are “issued by WebBank” (Shopify Capital). Amazon’s program works through third-party providers; see Amazon seller loans for how it works now.
The trade-off is that you can only accept what the platform offers, and the amount depends on sales through that one channel. Shopify also sets minimums: “30% of the total loan by the 6-month mark and 60% of the total payment amount by the 12-month mark” (Shopify Help Center).
Revenue-based financing from e-commerce lenders
Lenders such as Wayflyer and Clearco connect to your store, ad and bank accounts and offer funding based on your sales across channels. Clearco lists uses such as “Restock inventory before you sell out” and “Prepare for peak season” (Clearco). Wayflyer lets you “select between fixed daily amounts or a percentage of your sales” for repayment (Wayflyer). Our guide to e-commerce revenue-based financing covers how these products are priced.
Purchase order financing and consignment funding
With purchase order financing, a funder pays your supplier to fill a confirmed customer order, which suits brands selling wholesale to retailers. Kickfurther uses a different model for brands: “A community of Buyers on the platform purchases that inventory and consigns it back to your brand.” It says it “isn’t a loan. It’s a consignment Co-Op,” and that it “funds up to 100% of your inventory costs” (Kickfurther).
Bank, SBA and lines of credit
Established brands with good credit can use a bank term loan, an SBA loan or a business line of credit. The SBA allows up to “10 years of working capital or inventory loan” under 7(a) (SBA), and its Seasonal CAPLine “finances the seasonal increases of accounts receivable and inventory” (SBA types of 7(a) loans). These take longer and need more paperwork but are usually priced as interest rather than a flat fee.
E-commerce inventory financing options compared
Figures checked September 21, 2026, from each provider’s own pages. Three cost measures appear. An APR (annual percentage rate) is the yearly cost of borrowing, including interest and certain fees. A fixed fee is one charge set up front; it is not an annual rate, so repaying faster raises its APR equivalent. A monthly fee is charged for each month the balance is outstanding.
| Option | Amount | Pricing as published | Repayment | Published minimums |
|---|---|---|---|---|
| Shopify Capital | Up to $2M | Fixed fee or monthly fee | Fixed % of daily Shopify sales; 18-month maximum | Invitation in Shopify admin |
| Kickfurther | Up to 100% of inventory cost | 5% origination fee; rates “start around 2.2% per month” | Custom schedule of 1 to 10 months; payments start as the inventory sells | $150,000 trailing 12-month revenue; physical products |
| Clearco | Up to $10 million | Based on business performance | Estimated terms up to 12 months | DTC brand; 6+ months of revenue over $100,000 a month; US-incorporated |
| Wayflyer | Set per offer | Single fee set per offer | Fixed daily amounts or % of sales | $10,000 average monthly revenue over 6 months; holds its own stock |
| SellersFi Capital Loan | $25K to $2.5M | Fixed fee of 3% to 24% | 3 to 24 months | 6 months of sales history; $250K sales in the last 12 months |
| SBA 7(a) | Up to $5 million | Base rate plus a spread capped by the SBA | Up to 10 years for working capital or inventory | SBA eligibility and lender credit standards |
Sources: Shopify, Kickfurther, Clearco, Wayflyer requirements, SellersFi, SBA 7(a).
Kickfurther’s origination fee is “5% of the amount you finance, calculated against your cost of goods sold,” and it says monthly rates “depend on the deal structure.” Where a provider sets pricing per offer, ask for the total cost in dollars and the APR in writing so you can compare offers on the same basis.
What funders look for
- Consistent revenue. Published minimums run from $10,000 a month (Wayflyer) to more than $100,000 a month (Clearco). Most want at least six months of sales history.
- Your own stock. Inventory funders back brands that hold inventory. Wayflyer, for example, says it “does not currently work with dropshippers.”
- Healthy unit economics. Gross margin after fulfillment, returns and ad spend shows whether a reorder can repay its financing.
- Connected data. Most e-commerce funders ask you to link your store, marketplace and bank accounts instead of sending tax returns.
- Sell-through history. Evidence that past batches sold within a predictable window makes the next one easier to fund.
Pitfalls to watch for
- Repayment that starts before sales do. If payments begin while goods are still in transit, your existing sales carry the cost. Check when the first payment is due against your supplier lead time.
- Short terms on slow-moving stock. A 12-month product can be tight for goods that take a full season to sell through.
- Comparing fees with APRs. Convert every offer to an annualized cost based on how quickly you expect to repay. Our guide to factor rates vs. APR shows the math.
- Stacking sales-based products. Two or three advances taking a share of the same sales can leave too little cash for the next order.
- Landed cost blind spots. Freight, duties and platform fees can add much to the cost of each unit. Borrow for the landed cost, not only the factory invoice.
Selling through a physical store too? See retail inventory financing. Buying in bulk to resell to other businesses? See wholesale inventory financing.
FAQ
Can a dropshipper get inventory financing?
Usually not in the inventory-specific sense, because there is no stock to fund. Dropshippers are more likely to use platform financing, a line of credit or revenue-based financing from a provider that works with that model.
Is e-commerce inventory financing a loan?
It depends on the product. Shopify Capital in the US is a loan issued by WebBank. Kickfurther says its funding “isn’t a loan” but a consignment arrangement. Some revenue-based products are structured as merchant cash advances. The structure affects your rights, your minimum payments and how the funding appears on your balance sheet, so read the agreement.
How fast can I get inventory funding?
Platform offers are fastest; Shopify says funding can arrive “in as quick as two business days.” Clearco says applications are “typically reviewed in as little as 24 hours.” SBA and bank loans take longer.
Do I need good credit?
Many e-commerce funders weigh sales data more heavily than credit scores. Shopify, for example, advertises “no credit checks.” Bank and SBA lenders look closely at personal and business credit.
Next step
Map your cash cycle first: when you pay the supplier, when goods land, and how many weeks they take to sell. That tells you how much to borrow and for how long. Our e-commerce loans page explains how we help online sellers compare offers from the lenders we work with.
Sources
- U.S. Census Bureau: Quarterly Retail E-Commerce Sales, 2nd Quarter 2026
- Shopify: Shopify Capital
- Shopify Help Center: Shopify Capital in the United States
- Kickfurther: E-commerce inventory financing
- Clearco
- Wayflyer: How our financing offers work
- Wayflyer: Requirements to get funding
- SellersFi: Amazon funding
- U.S. Small Business Administration: 7(a) loans
- U.S. Small Business Administration: 7(a) terms, conditions and eligibility
- U.S. Small Business Administration: Types of 7(a) loans
About this page. Written by Ezra Cabrera, Content Team Lead at SMB Compass. Figures were checked against the primary sources listed above on September 21, 2026; lenders change their terms, so confirm current terms before you apply, and let us know if you spot a figure that has changed. SMB Compass is a business financing broker: we don’t lend our own money, and we are paid by the lenders we place loans with. This page is general information, not financial, legal or tax advice.