Funding stock for peak season

For retailers, wholesalers and many online sellers, a big share of the year’s profit depends on having the right stock on the shelf at the right moment. The difficulty is that suppliers want paying long before customers turn up.

How big is the gap?

Work backwards from the season. When do suppliers need payment? When does the stock arrive? When does it sell? The gap between the first and the last date, multiplied by the value of the order, is the funding need. For imported goods with long lead times, that gap can be three or four months.

Sizing the order sensibly

The most common stock-funding mistake is borrowing against an optimistic season. A safer process:

1. Look at last season’s sell-through by product line.
2. Adjust for real changes, such as a new product range or an extra sales channel.
3. Hold back a reserve rather than committing every dollar to stock.
4. Agree reorder options with suppliers so you can top up fast sellers mid-season.

See what is on offer before you commit to anything. The enquiry is free, runs no credit check and does not lock you into a thing.

Choosing the funding

Option	Best when
Line of credit	You buy stock several times a year and want to draw only what you need
Short working capital loan	One large pre-season order, repaid after the peak
Supplier terms	Your supplier will give 30 to 60 days, reducing what you need to borrow
Property-secured funding	Larger orders, or when you want no repayments until after the season

The working capital calculator shows how much cash your stock and debtor days tie up across the year, which is a good starting point for the size of a line of credit.

Supplier discounts versus funding cost

Some suppliers offer a discount for paying early or ordering in bulk. If the discount is worth more than the cost of funding the order, borrowing to take it can make sense. Our page on supplier early payment discounts shows how to compare the two in dollars.

After the season

Repay the facility from peak sales as quickly as you can, and review what sold. The next order will be better sized, and the facility will be ready for it.

The short version

• Stock is paid for before it sells
• A line of credit or short loan repaid from peak sales
• Size the order from real sell-through data
• Have a plan for an average season

What happens when you enquire

We keep it simple. Your enquiry goes to one team. That team calls you, confirms the details, asks for bank statements or property details and tells you honestly what looks achievable. If the right answer is a payment plan, a conversation with a supplier or waiting a quarter, we will say so. If funding fits, you get the amount, term, repayments and total cost spelled out before you sign anything. You will always know who is handling your file and how to reach them.

When borrowing helps, and when it does not

Good borrowing has a job and an end date. Before you enquire, write down in one sentence what the money is for and how it will be repaid. If that sentence is easy to write, you are probably in the right place. If it is not, it is worth a closer look at the business’s cash flow before taking on new repayments.

A simple preparation list

You do not need a folder of financial statements to start an enquiry. For most unsecured and property-secured funding, these few items cover the essentials:

• Photo ID for each director or owner.
• Access to your business bank account for a secure statement link.
• Your latest BAS, if it is handy.
• Details of existing finance, including any daily or weekly repayments.
• For property-secured funding, the property address and current loan balance.

About the questions we ask

Late surprises are what slow funding down. A second property owner nobody mentioned, turnover that is lower in the statements than on the form, an amount that doubles after the first call: each one sends the assessment back to the start. If you tell us the full story at the beginning, even the awkward parts, the file only has to be worked through once.

Take the next step

You can check your eligibility in about a minute. There is no credit check to enquire, no lead farming and no call centre script, just a person who looks at your situation and tells you plainly what could work. The more accurate the answers on the form, particularly the amount, revenue and whether you own real estate, the faster and better that first conversation will be.