Funding a bulk stock buy, fast

Stock deals don’t wait. A wholesaler clearing a warehouse, a brand offering early-order pricing for summer, a receivership auction on Thursday — the business that can pay first usually gets the goods. If your cash is tied up in last season’s stock and this month’s wages, fast stock funding is how you say yes.

When does borrowing for stock make sense?

It makes sense when the stock will sell, at a margin that comfortably covers the cost of borrowing, within a time you can predict. Good examples:

• Seasonal pre-orders — summer gear, Christmas lines, ski season stock — at early-order prices.
• Clearance and end-of-line lots at deep discounts, in lines you already sell well.
• Supplier price increases — buying ahead of a confirmed rise.
• Securing scarce stock before a peak, when supply is tight.

It makes less sense for untested products, slow-moving lines or stock bought “because it was cheap”.

How fast can stock funding come through?

Most stock purchases are funded unsecured, sized on your turnover. With six months of business bank statements and photo ID ready, our aim of funding within 24 hours of your first application is realistic; smaller amounts can be funded the same day. Larger orders backed by property — from $20k to $250k — can also be possible the same day when the title is clean and a lawyer is ready.

Offer on the table right now? Apply for stock funding and attach the supplier’s terms to the conversation.

Which product fits which stock buy?

Stock situation	Usually fits
One large seasonal order	Cash flow loan or short-term loan
Regular buys through the year	Line of credit
Very large order or several at once	Property-secured facility
Deposit now, balance on arrival	Short loan for the deposit, line of credit for the balance — see supplier deposits

What will a lender look at?

• Your sales history. Bank statements showing strong deposits in the same season last year are powerful evidence.
• The supplier’s paperwork. Quote, invoice, terms.
• Your margin. Roughly what you’ll sell it for.
• Your existing stock position. Are you already heavy on inventory?
• The repayment plan. When sales will repay the loan.

How do I size a stock loan properly?

Work through the sell-through:

1. Total cost of the stock, including freight, duties and GST if applicable.
2. Expected sales per week, based on last year’s figures for similar lines.
3. Weeks until enough is sold to repay the loan.
4. Add a buffer of a few weeks for slow periods or shipping delays.

Don’t forget GST. If you import or buy from a GST-registered supplier, you’ll pay GST at 15% on the purchase and may be able to claim it back in your next return — but cash leaves first. Also remember the GST on your sales will fall due on your usual dates; Inland Revenue’s standard due date is the 28th of the month after your period ends.

An illustrative example: a Christchurch bike shop is offered 60 e-bikes at a clearance price of $96,000, payment within five days. Last year it sold about eight e-bikes a week from October to January. At a similar pace, the stock clears in eight weeks. A three-month cash flow loan covers the purchase, with room for a slow start. (Illustrative only.)

What are the risks with stock funding?

• Slower sales than expected — the most common problem. Build in slack.
• Fashion or technology changes — stock that dates quickly loses value.
• Storage costs — a big buy may need extra warehouse space.
• Cash squeeze elsewhere — don’t let the stock loan crowd out wages or tax.

A 13-week cash flow forecast helps you see the whole picture. business.govt.nz offers a free forecasting tool.

Stock funding at auction or from a receiver

Stock sold at auction, or by a receiver or liquidator clearing a failed business, can be a genuine bargain — but the payment terms are usually strict, often requiring settlement within a few days of the sale. To bid with confidence:

• Get pre-assessed before the auction, so you know how much funding is realistic.
• Inspect the stock or get a detailed inventory; condition varies.
• Check for security interests — the PPSR shows registered claims over personal property, and the seller should confirm stock is being sold free of them.
• Know your ceiling — set a maximum bid that still leaves a margin after the funding cost.

With pre-assessment done, the final funding step can often be completed within 24 hours of the hammer falling.

Should stock funding be a loan or a line of credit?

It depends on how often you buy. A business that makes one or two big seasonal buys a year usually suits a one-off loan for each. A business that buys every few weeks — a wholesaler, a builder’s merchant, a café restocking — is usually better served by a line of credit that’s drawn as invoices fall due and repaid as stock sells. The line takes about the same time to set up as a one-off loan, but every buy after that is much quicker.

Grab the stock while it’s there

If a stock opportunity is worth taking and the payment window is short, fast funding can make it happen within a day. Check your options in about 60 seconds. There’s no credit check involved in enquiring, your details aren’t handed round to a line-up of lenders, and a real person will look at your sales history with you. Please be accurate about the order value, payment deadline and how fast similar stock has sold — it’s how we size the right loan quickly.