How can I finance inventory for my e‑commerce store?

How can I finance inventory for my e‑commerce store?

Yes — you can finance inventory through working capital loans, equipment financing, or revenue-based e‑commerce funding. Minimum qualification: 550 FICO, 6 months in business, and $10K+ monthly revenue. Funding closes in as little as 24–48 hours.

Get a personalized rate in 2 minutes—no credit-score impact from the inquiry.

The specifics

E‑commerce sellers have three main paths to inventory capital:

Working capital loans are the most common option for inventory restocking. These offer amounts from $10K to $500K, with factor rates of 1.15–1.40 (equivalent to approximately 15–50% APR), and close in 24–48 hours. You repay over 3–24 months. According to Pilot's guide to e‑commerce financing, working capital is ideal for bridging seasonal inventory spikes and managing cash flow gaps between purchase and sale.

E‑commerce platform funding is tailored for Shopify, Amazon, Stripe, and other marketplace sellers. Amounts range from $10K to $1M+, with repayment structured as a daily sales holdback (5–15% of sales). Funding closes in 1–3 days, and minimum qualifications are 550 FICO, 6 months in business, and $10K+/month in platform revenue ($30K+ for best pricing). This structure aligns repayment with your revenue, so repayment shrinks when sales dip.

Equipment financing covers warehouse equipment, packing machinery, or vehicles used in fulfillment. Loan amounts reach $5M, terms are matched to asset life (typically 48–84 months), and rates range from 8–25% APR depending on credit score and collateral. Funding closes in 3–7 days with 580+ FICO and 6 months in business.

According to Settle's 2026 roundup of working capital solutions, the majority of e‑commerce sellers under $100K/month revenue use working capital or platform-specific funding, while larger operations leverage SBA loans for lower long-term rates.

For a quick estimate of what inventory funding might cost your business, use our affordability calculator to model different advance amounts and repayment terms.

Qualification & edge cases

Qualification floors for working capital and e‑commerce funding are deliberately low to serve younger or smaller sellers:

• Credit score: 550 FICO minimum (no credit minimum for invoice factoring, if you use that for B2B supplier invoices).
• Time in business: 6 months minimum for working capital; 3 months for invoice factoring.
• Monthly revenue: $10K+ for working capital; $10K+ for e‑commerce funding (though rates improve significantly above $30K).
• Debt-to-income: No hard ceiling, but lenders prefer monthly debt service below 8–12% of gross monthly revenue, according to Luca's working capital calculator.

Edge cases:

• Revenue below $10K/month or score below 550: You may still qualify for gig & 1099 funding ($5K–$250K, factor rates 1.15–1.40) if you have personal 1099 income, though approval timelines extend to 24–48 hours.
• Irregular or seasonal revenue: E‑commerce platform funding with daily sales holdback may suit you better than a fixed monthly payment. Alternatively, a line of credit lets you draw only when needed (and pay interest only on drawn balances).
• Multiple existing MCAs or short-term debts: An SBA loan or business term loan can consolidate expensive debt into one lower-rate product. SBA loans require 640 FICO and 24 months in business but offer Prime + 2.75–4.75% rates and terms up to 25 years.

Background & how it works

Inventory financing solves a core e‑commerce problem: cash is tied up in stock before you sell it. Traditional bank loans often take weeks and require 2+ years in business; newer e‑commerce lenders use your sales history and merchant account data to approve faster.

Working capital loans provide a lump sum you repay on a fixed schedule. The lender advances 50–80% of inventory value and holds the inventory as collateral until repaid. This works well for planned purchases (Q4 restocking, new product lines).

E‑commerce platform funding takes a different approach: the lender advances capital upfront and recovers it through a percentage of your daily platform sales. You owe nothing on slow sales days and repay faster during peaks. This aligns your cash outflow with your revenue, which is why it's popular among Shopify and Amazon sellers managing irregular sales.

Equipment financing is secured by the equipment itself, so rates are lower (8–25% APR) than unsecured working capital. If you're buying warehouse racking, a packing machine, or a delivery vehicle, equipment financing often costs less than working capital.

According to the FDIC's 2024 small-business lending survey, nearly 40% of small businesses seeking capital for inventory or working capital pursue non-traditional lenders due to faster approval and lower credit-score minimums.

Bottom line

Inventory financing is accessible to most e‑commerce sellers. Working capital and platform-specific funding close in 24–48 hours at 550+ FICO with just 6 months in business. Match the product to your cash flow: fixed loans for planned restocking, daily-holdback for irregular sales, equipment financing for machinery. See the rate you qualify for in 2 minutes—no credit-score impact.

Disclosures

This content is for educational purposes only and is not financial advice. financingecommerce.com may receive compensation from partner lenders, which may influence which products are featured. Rates, terms, and availability vary by lender and applicant qualifications.

Sources

• Settle | The 14 Best Working Capital Solutions for eCommerce Businesses in 2026
• Pilot | E-Commerce Financing: A Guide to Your Options
• Luca | E-commerce Working Capital: Stop Guessing, Start Calculating Your Exact Need
• FDIC | 2024 Report on the Small Business Lending Survey
• NerdWallet | Average Business Loan Interest Rates: July 2026