Need to buy stock fast? Funding options for bulk buys, deposits and peak season

Why do stock purchases need fast funding?

Stock opportunities rarely wait. A supplier offers a bulk discount until Friday. A container of product is available now, not next month. Peak season is six weeks away and the shelves need filling. Prices are about to rise. In each case, the money has to go out before the sales come in — and the gap can be larger than the business’s cash reserves.

What are the options?

Option	Speed	Best for	Watch out for
Supplier or trade terms	Depends on the supplier	Any stock, if available	Not always offered to newer accounts
Short-term unsecured loan	Same day possible for smaller amounts	One-off bulk buy	Repayments start before stock sells
Line of credit	Fast once set up	Repeated stock cycles	Setup time; drift
Property-secured loan	$20k–$250k possible same day	Large bulk buys, credit issues	Property at risk; term too long for stock
Merchant cash advance	Quick	Retailers with steady card sales	Daily deductions
Equipment finance	—	Not suitable for stock	Designed for assets, not inventory

How do you match the loan to the stock?

The golden rule: the loan should end about when the money from the stock has come in.

1. Estimate sell-through. How many weeks until most of the stock is sold?
2. Add collection time. If you sell on account, add your customers’ payment terms.
3. Add a margin. Stock sometimes sells slower than hoped.
4. That’s your loan term. Shorter means repayments before you’ve sold; longer means paying for stock you’ve already turned into cash.

Repayment frequency matters too. A weekly repayment that starts immediately can squeeze cash before the first sales arrive. Ask whether repayments can start later, or choose a structure that follows your sales — a line of credit you repay as stock sells, for example. Our repayment frequency guide explains the trade-offs.

Is the bulk discount actually worth it?

Do the sums in dollars before you call a lender.

Illustrative example. A Tauranga garden centre is offered 12% off a $60,000 order of spring plants if it pays upfront this week instead of on 30-day terms. The discount is worth $7,200. A short-term loan for eight weeks, repaid as the plants sell, has a total cost well below that. The owner also checks the risk: if a wet spring slows sales, can the loan still be repaid on time? With a sensible buffer, the deal stacks up.

If the finance cost is close to the discount, or the stock might sit unsold, the “saving” can evaporate. And remember GST: at 15%, it’s a sizeable part of what you pay a supplier, and the timing of the GST you claim back depends on your filing frequency. Talk to your accountant if a large purchase will affect your GST position.

What about imported stock?

Imported stock adds two complications: deposits paid months before delivery, and shipping delays. A loan for an overseas deposit should allow for the stock arriving late, clearing customs and then selling. A common structure is a short-term or secured loan with interest capitalised or repayments deferred until the stock is in hand, then cleared as it sells.

One-off or repeated?

If you buy big once a year — for Christmas, for the planting season, for the summer rush — a short-term loan each year can work well. If stock purchases are constant and lumpy — every month, every new contract — a line of credit is usually cheaper and easier than applying for a new loan each time. Our line of credit vs short-term loan comparison goes deeper.

Supplier deadline coming up? Find out what you can get in time.

How do the options compare on a typical bulk buy?

	Supplier terms	Short-term loan	Line of credit
Cost	Often free	Fixed total cost	Interest while drawn, plus fees
Speed	Depends on supplier	Same day possible for smaller amounts	Fast once set up
Flexibility	Low	Low	High
Best for	Regular orders from one supplier	One big purchase	Frequent purchases

What will a lender want to know?

• What you’re buying, from whom and for how much.
• How quickly you expect it to sell, and how you know (last year’s sales are great evidence).
• Your bank statements, showing normal trading.
• Your margin on the stock.
• Any existing stock finance or supplier credit.

Should you use property for a stock purchase?

Only for large, well-understood purchases with a clear sell-through. Property-secured money is usually cheaper than unsecured, but it often comes with a fixed minimum term that may outlast the stock. If you go this way, check the early repayment terms so you can clear the loan as soon as the stock has sold.

How do you avoid getting stuck with stock-funded debt?

• Don’t over-order because the money is available.
• Track sell-through weekly and slow reorders if sales lag.
• Keep the repayment plan realistic — not based on your best-ever season.
• Avoid funding slow-moving stock with expensive short-term money.

For businesses whose stock needs are part of a bigger cash cycle — stock, wages and debtors all at once — read working capital loans. For seasonal businesses, seasonal dip funding is worth a look.

Fund the stock, protect the margin

We’ll help you match the funding to how fast your stock actually turns. There’s no credit check when you first enquire, and your details aren’t scattered across lenders — one specialist reviews your purchase and calls you. Give us accurate numbers for the order, your margin and how long it usually takes to sell, and we’ll come back with options that protect the profit you’re buying the stock to make. Apply in a minute.