Redrun Business Funding, a small-business funding broker in Caldwell, Idaho, arranges inventory financing through lending partners for Canyon County retailers, wholesalers and parts suppliers that need stock on hand before it sells. This page explains how inventory credit works, floor plan lines, UCC filings, how it compares with factoring and a line of credit, and what partners review. Partners decide.
| What it is | Credit secured by the stock it buys |
|---|---|
| Repayment | Paid down per batch sold, or by calendar |
| Common users | Retail, wholesale, parts and supply firms |
| Decided by | The stock lender; Redrun only arranges |
How inventory credit works
A partner advances part of the cost of goods, holds a security interest in them, and is paid back as the goods sell or on a set schedule. Because the stock is collateral, partners care about what it is, how quickly it sells and how much it would fetch if it had to be sold off.
Fast-moving, easy-to-value goods are easier to finance than perishable, custom or slow-moving stock.
Inventory financing example
A hypothetical Canyon County parts supplier wants to stock a product line ahead of contractor demand. The partner looks at the supplier's sales history for similar items, sets an advance as a share of the goods' cost, files a lien on that stock, and agrees a repayment schedule. As each batch sells, the supplier pays down the related balance. The figures are illustrative only; real advance rates and terms are set by the partner.
Floor plan financing
Floor plan financing is a form of inventory credit for big-ticket items held for sale, such as equipment or trailers on a dealer's lot. Every unit on the lot carries its own advance, cleared when that unit leaves. Partners typically check the stock regularly, so expect audits and reporting as part of the requirements.
UCC filings on stock
Partners that take inventory as collateral usually file a UCC financing statement with the state, which publicly records their claim on the goods. If another lender already holds a blanket lien on your business assets, a new inventory partner will see it, and the two claims have to be sorted out before new credit goes ahead.
Inventory financing, factoring or a line
| Inventory financing | Factoring | Line of credit | |
|---|---|---|---|
| Based on | Goods on hand | Invoices already issued | Overall business credit |
| Paid back by | Sales of the goods or a schedule | Your customers paying the factor | Payments sized to the balance in use |
| Suits | Filling shelves before the sales arrive | Waiting on slow-paying customers | Mixed, repeating needs |
Factoring sells invoices rather than borrowing against stock, and it is not one of Redrun's six structures. A revolving line can also fund stock when the amounts are smaller and varied.
Shops and wholesalers on the Canyon County, ID rolls
Canyon County had 555 retail employer establishments and 226 wholesale ones in 2023 (County Business Patterns 2023). The county also counted 1,753 retail businesses with no paid employees in 2024 (Nonemployer Statistics 2024), a separate program and year, so the two figures should not be added together. Within ZIP 83605, where Redrun's office sits, 106 retail employer establishments were counted in 2023 (ZIP Code Business Patterns 2023).
The sector overview shows how retail fits alongside construction, restaurants and medical practices, and the Caldwell, ID page has the rest of the local figures.
Stock partners look at more closely
Not all inventory carries the same weight as collateral. Perishable food, fashion lines that date quickly, custom-made parts and goods that need specialist buyers are harder to value and harder to sell if things go wrong, so partners may advance less against them or exclude them altogether. Plain, widely traded goods with a clear resale market are easier to finance.
Keep your stock records clean before you ask: a dated inventory list, a note of slow movers, and evidence of what sold over the past year. A partner that can see turnover clearly has less reason to discount the goods.
Points to settle with a stock lender first
- Which items count as eligible collateral, and which are excluded?
- How often must stock be reported or audited?
- When is each portion repaid: at sale, or on a fixed date?
- What happens to the advance if goods are returned or damaged?
Records partners usually review
- A current inventory list with costs and ages.
- Sales history by product line.
- Supplier invoices for the goods to be financed.
- Business bank statements and tax returns.
- Any existing liens or UCC filings.
See the request steps for where these come in, or compare all six structures.
By Redrun Business Funding · Updated
