FAQs

MerchandiseLending.com arranges four lending products. Short-term business loans and business lines of credit allow business owners to access capital fast, in as little as 24 hours, without pledging any hard assets. Equipment financing and leasing provides up to $5 Million financed over terms of 2 to 5 years, using the newly acquired equipment as collateral for the transaction. The flagship product we arrange is an inventory line of credit from $2 Million to $10 Million based on the value of your merchandise, giving small businesses access to financing normally reserved for large corporate interests. This is a revolving line of credit that can be drawn and re-drawn upon as inventory stock expands. See our "Lending Products" menu for detailed information about all of our offerings.

Financing runs from $10 Thousand to $10 Million, depending on the product: short-term loans from $10 Thousand to $1.5 Million, business lines of credit from $10 Thousand to $500 Thousand, equipment financing from $10 Thousand to $5 Million, and inventory lines of credit from $2 Million to $10 Million. Short-term loans and business lines of credit are generally sized at 10% to 15% of gross annual revenue.

Not a cent. Our lending partners pay for our service out of the fees they already charge, so your rate and fees are exactly the same as if you went to the lender directly, never higher. What you gain is a lending specialist in your corner who knows which lending programs say yes to businesses like yours, helps prepare your application, and matches you with the program that fits, so you don't have to search on your own. Your lender makes the final credit decision and is named in your financing agreement.

We built a lending platform around your inventory, not a one-size-fits-all checklist. The flagship product we arrange is a revolving line of credit from $2 Million to $10 Million that scales with your inventory value - not your receivables - backed by flexible structures and a proven network with decades of asset-based lending experience. On inventory lines, our lending partners can say yes where banks say no: to retailers, e-⁠commerce brands, wholesalers, and manufacturers with less than 3 years in business, irregular cash flow, low net worth, high debt-to-equity ratios, profitability concerns, or personal credit issues, and even to mature businesses that have fallen out of covenant with their current bank.

Many businesses don't have months to lose to bank underwriting that ends in a decline. Our lending partners are private lenders, not banks bound by rigid lending rules, and can fund in as little as 24 hours for short-term loans and business lines of credit, with timing that depends on the product. Whether you need to replenish inventory, bridge a seasonal gap, fund a buyout, or replace an expensive merchant cash advance, the financing we arrange moves at your speed.

These lending products help your business stay financially agile. Depending on the product, they can be used to replenish inventory, stay current with suppliers, and bridge seasonal cash flow gaps. Whether you're launching new products, expanding into new markets, navigating a turnaround, or purchasing equipment, the right financing provides stability and facilitates growth. You can also replace a high-cost merchant cash advance with a short-term loan on fixed payments, or go a step further with an inventory line of credit that lets you draw more as your stock grows, to improve cash flow. Additionally, equipment financing can offer tax advantages (your accountant can advise), and business lines of credit reported to business credit bureaus can help build your company's credit.

Our inventory lines of credit are built for retailers, e-⁠commerce brands, wholesalers, and manufacturers that carry saleable inventory. Short-term loans, business lines of credit, and equipment financing are open to a wide range of established businesses. Lenders do restrict some industries, so if you're unsure whether yours qualifies, your lending specialist can tell you right away.

Usually not. Inventory line of credit applications typically don't involve a credit pull, though a lender may still run one. Applying for a short-term loan or business line of credit uses only a soft pull, which doesn't affect your score. On some larger equipment financing deals a lender may run a hard pull, but only after you've been approved and chosen to move forward, and always with notice first.

Inventory lines start at $2 Million. The line is typically 50% to 80% of what your inventory cost you, based on what it would bring in an orderly sale. For example, inventory that cost you $10 Million could support a line of roughly $5 Million to $8 Million. As a rule of thumb, you'll want at least $2.5 Million to $4 Million of inventory at cost to qualify. An independent appraisal sets the final number.

Lenders finance saleable inventory, such as finished goods, raw materials, and work in process, for retailers, e-⁠commerce brands, wholesalers, and manufacturers. What matters most is how readily it would sell: inventory is valued by what it would bring in an orderly sale within about 90 days, so fast-moving goods carry the most value, and slower-moving or highly seasonal stock is valued more conservatively. Perishable goods generally fall outside inventory programs, and for apparel, everyday general stock tends to be a better fit than name-brand goods. If you're unsure how your inventory would be treated, your lending specialist can walk you through it.

We work with businesses across the United States, and our inventory lines of credit are also available to companies in Canada. Short-term loans, business lines of credit, and equipment financing require a U.S. business with a U.S. business bank account. If your Canadian company has a U.S. entity, that entity may qualify, so ask your lending specialist.

Yes. Every product we arrange is designed for businesses and used for business purposes, such as buying inventory, bridging seasonal cash flow gaps, or purchasing equipment. We don't arrange personal or consumer loans.

Often, yes. Inventory lines of credit are designed to work alongside factoring and receivables financing. Because an inventory line is secured by your inventory, any existing lender with a lien on that inventory will need to be addressed before closing, and your lending specialist can walk you through the options. Short-term loans and business lines of credit are repaid from future receivables, so if you factor your receivables, ask your lending specialist how the two would fit together. Equipment financing is secured by the equipment being financed, which generally keeps your other assets unencumbered.

A lending specialist will be in touch within one business day to talk through your goals and match you with the right lending program. From there:

Inventory lines of credit: you'll send your application and financials, and the lender typically responds with a term sheet within a couple of days. Once you sign it, underwriting begins, including an independent appraisal and field exam of your inventory. Upfront fees of about $35,000 apply only to inventory lines of credit and cover legal work, due diligence, the appraisal and field exam, and UCC filings; the other products have their own fees, shown on each product page. Closing typically takes a month or more.

Short-term loans and business lines of credit: you'll see the amount, term, and payment before you sign anything. Decisions often come the same day, and funding can follow in as little as 24 hours.

Equipment financing: approvals often come in 24 to 48 hours, the lender pays your equipment vendor directly, and deals usually close in 1 to 3 weeks.

It depends on the product. You'll receive a checklist of exactly what's needed, and your lending specialist will help you through the process from start to finish.

Inventory lines of credit: because these are larger facilities, lenders look more closely. Expect to provide a detailed inventory report by item and cost (in Excel), your year-end financial statements for the last three years (or for as long as you've been in business), year-to-date financials compared with the same period last year, 12-month projections, current receivable and payable agings, and a personal financial statement for each owner of 20% or more.

Short-term loans and business lines of credit: usually just a short online application, your last four months of business bank statements, and ID verification.

Equipment financing: for smaller purchases, usually just a one-page application and your equipment invoice, quote, or bill of sale. Larger requests may call for tax returns or financial statements.

No. Applying is free and commits you to nothing. You'll see the proposed terms before you agree to anything, and nothing is binding until you choose to sign. Applying doesn't guarantee an offer, but it's the quickest way to find out what your business qualifies for.

For inventory lines of credit, a personal guarantee typically isn't required, which sets them apart from most bank financing, though a lender may still ask for one. Owners do sign a validity guarantee: a simple promise that the inventory and financial information they provide is accurate. For short-term loans and business lines of credit, a personal guarantee is typically required. For equipment financing, requirements vary by program. Your lending specialist will tell you upfront what applies to you.

Your information is kept confidential. We share it with the lending partners whose programs fit your business, so they can review your application; with referral partners, such as a business that introduced you to us or one whose financing or services may fit your needs; and with the companies that help us run our business. We never sell it for money. We may also reach out from time to time about financing options that could help your business, and you can opt out at any time. Your lender will verify the details you provide as part of its review. See our Privacy Policy for the full details.

A no from one program isn't always the final answer. We work with more than one lending partner across several products, each with its own requirements. For example, a business that isn't yet large enough for an inventory line of credit may still qualify for a short-term loan or business line of credit. Your lending specialist will look at the alternatives with you and be straightforward about what's realistic.

Terms vary by product: short-term loans run 6 to 24 months, business lines of credit 12, 18, or 24 months, equipment financing 2 to 5 years, and inventory lines of credit usually 3 years. Some terms may be negotiable, and a lending specialist can help you find the right fit for your business. We believe in transparency, so we show rates and fees upfront to save you time, and your lender sets the final terms in your financing agreement.

Inventory lines of credit: these are committed facilities, typically for 3 years. If you close the line early, a declining fee applies: 3% of the facility amount in the first year, 2% in the second, and 1% in the third. Lenders can be flexible for events such as a public offering.

Short-term loans and business lines of credit: no prepayment penalty. You can pay off early at any time.

Equipment financing: no prepayment penalty on most programs. Your lending specialist can tell you what applies to yours.

Requirements vary by product:

Inventory lines of credit: your inventory is typically reappraised once a year by an independent appraisal company, at your expense, and your financing agreement will spell out any regular inventory updates your lender needs, so there are no surprises.

Short-term loans: your lender may run periodic credit reviews while the loan is open, and once around 50% is repaid, varying by program, you may be able to renew for additional funds.

Business lines of credit: your line is reported to business credit bureaus, which can help build your company's credit. As you repay, your available credit restores so you can draw again. Your lender may also run periodic credit reviews while the line is open.

Equipment financing: you'll make fixed monthly payments, and your agreement will spell out anything else your lender needs.