Requests reach funding partners through Millfield Business Capital, by phone or online, and the partner alone decides whether to offer and on what terms.
Inventory financing covers goods a business buys to resell or install, with the stock itself as the main security. The dealer, contractor, party supply store and used car lot cases on this page use invented figures. Funding partners set the advance share, rate, term and fees.
At a glance
- Pays for
Supplier orders of goods the business resells or installs
- Security
The financed stock, plus anything else a partner asks for
- Wholesale trade, Morgan County, CO
41 employer establishments (CBP 2023)
Inventory financing in Fort Morgan, CO, traced through a building supply dealer's house wrap and vinyl siding order
A building supply dealer buys house wrap and vinyl siding by the pallet, and its supplier bills on net-30 terms. Contractors then buy those goods a few rolls and cartons at a time over the following months. Inventory financing closes that gap: the partner pays toward the supplier order now, and the dealer pays the partner back out of the sales the order produces.
Illustration only, invented figures: the dealer's order totals $32,846, and the partner in this invented case advances 70% of it, which is $22,992.20. The invented dealer covers the other $9,853.80 from its own account.
Spread across 6 invented monthly payments at 14.85% a year, each payment comes to $3,999.71. The six together total $23,998.26, so the invented interest cost is $1,006.06.
In 2023, Morgan County, CO had 11 building material and supplies dealers with a payroll (County Business Patterns, NAICS 4441). Retail Trade as a whole had 96 employer establishments in the county that year, and the page on Fort Morgan, CO business loans follows a repair and a machine purchase through.
What a supplier's 30 days already carries on a Morgan County, CO party supply store's order
Before asking a partner for anything, a store can check how much of an order its supplier's own terms already carry. Goods that sell within the supplier's 30 days pay their own share of the bill; only the part still on the shelf at day 30 needs other money:
- Invented order: $14,380 of tableware, balloons and decorations, on 30-day terms
- Invented sell-through by day 30: 45%, which pays $6,471 of the bill
- Invented stock still unsold at day 30: $7,909
- The amount to weigh against a credit line draw or inventory financing: that $7,909, not the whole order
Small repeat orders can also run through a business line of credit instead of a separate stock facility. Millfield matches the request to the structure that fits the order, then passes it to funding partners.
Wholesalers carry the same timing problem: 41 wholesale trade establishments with employees operated in the county in 2023, 34.1% of them with a staff under five.
Worked numbers on a Fort Morgan, CO HVAC contractor's stock of condensing units and evaporator coils
An HVAC contractor keeps condensing units and evaporator coils on hand so a replacement job does not wait on a distributor. The units are the contractor's stock; installing them at a customer's building is the customer's property work, which this site does not fund.
Invented example: the contractor finances $19,537 of units and coils over 8 months at 13.38% a year. Eight invented payments of $2,566.24 come to $20,529.92, which puts the invented interest at $992.92.
| Invented case | Amount financed | Rate (annual %) | Months | Monthly payment |
|---|---|---|---|---|
| Dealer: house wrap and vinyl siding | $22,992.20 | 14.85 | 6 | $3,999.71 |
| Contractor: condensing units and coils | $19,537 | 13.38 | 8 | $2,566.24 |
Each unit sold and installed brings in the money for the next payment, which is why a partner may ask how many units the contractor moves in a typical month.
Floor plan stock on a Morgan County, CO used car lot: interest by the day each vehicle sits
A used car dealer holds stock that carries serial numbers, one vehicle at a time. Under a floor plan arrangement a partner pays for each vehicle as it joins the lot, interest runs on that unit for the days it sits, and the dealer pays the unit off when it sells.
Invented figures: at an invented 11.9% annual rate, a vehicle floored at $24,350 that sells after 41 days carries $325.49 of interest, while one floored at $18,760 that sits 73 days carries $446.49.
In this invented case the cheaper vehicle costs more to hold, because it sat longer. Automobile dealers numbered 5 employer establishments in Morgan County, CO in 2023 (County Business Patterns, NAICS 4411).
Yarn, thread and fabric bolts: how a fabric and craft store's shelf in Fort Morgan, CO can back a stock request
A fabric and craft store keeps a shelf of yarn, thread and quilting cotton that turns over within weeks, alongside special-order items that sit until one customer needs them. A partner may look at the two groups separately, because they sell at different speeds.
Before calling about stock for the shop, it helps to pull together:
- A stock list with the cost and the date each item group was received
- Sales by item group for recent months
- Supplier invoices for the order the money would pay for
- Business bank statements that show the deposits from the register
A store that buys in small weekly orders may find a credit line or working capital fits better than a stock facility. Each stock line in a hardware and supply store gets its own funding fit in a separate article.
By Millfield Business Capital · Updated