2 min read
Definition
Stock finance (or inventory finance) is borrowing secured against a business's stock, releasing cash tied up in inventory. It suits businesses that must hold significant stock — to meet demand or ahead of a peak — without draining their working capital.
In plain terms
The lender advances against the value of your stock, freeing cash you would otherwise have locked on the shelves. It is repaid as the stock sells, making it self-liquidating when used for a genuine, sellable stock build.
Why it matters
Stock finance funds the inventory leg of the working-capital cycle. See stock and cash flow and trade finance.
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Read →Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.