Deerline Advances, a small-business funding broker in Prescott, Arizona, arranges inventory financing through lending partners for Yavapai County, AZ retailers and wholesalers that buy stock before they sell it. The goods usually secure the deal, often with a UCC filing. Partners review turnover, invoices and statements, decide, and set any rate or term.
| What it is | Money for stock a Yavapai County shop will resell |
|---|---|
| Collateral | The stock, typically backed by a UCC-1 on file |
| Partners review | How fast stock sells, vendor bills, past sales |
| Yavapai County, AZ retail | 777 employer establishments (CBP 2023) |
| Yavapai County, AZ wholesale | 168 employer establishments (CBP 2023) |
| Who decides | The lending partner |
How inventory financing works
The partner advances money to buy stock, and the stock becomes collateral. As goods sell, you repay. Some deals are a single purchase loan for a large order; others are a revolving facility sized against the inventory you hold, re-measured on a schedule.
Partners rarely lend against the full cost of goods. They discount for what the stock would fetch if it had to be sold quickly, and they discount more for items that spoil, go out of style or sit on shelves.
The UCC-1 a partner files against your stock
A secured inventory deal usually comes with a UCC financing statement filed with the state. It tells other creditors that the partner has a claim on the inventory named. A blanket filing on all business assets is broader and can make a second financing harder to get.
Read which assets the filing names, and ask whether it is released when the balance is repaid.
Floor plan financing requirements
Floor plan financing is a form of inventory finance for high-value, serialized goods: each unit is financed individually and paid off when it sells. Partners that write floor plans usually ask for unit-level tracking, regular audits of stock on hand, and quick payoff after each sale. It suits dealers in equipment and similar goods; most small retailers use a simpler purchase facility.
Inventory financing vs factoring
One borrows against shelves still full; the other sells invoices already sent. Factoring sells invoices already issued to customers. A wholesaler that has shipped and is waiting on payment has receivables to factor; a shop filling shelves ahead of sales has inventory to finance. Deerline Advances does not arrange factoring; if receivables are the real gap, a line of credit secured by receivables is one option partners may weigh.
An inventory financing example (made-up figures)
A gift shop expects to sell a $30,000 order over four months. A partner advances part of the cost against the goods, and the shop repays as the stock sells. If sales lag and items remain on hand at month four, the shop still owes the balance. That risk is why partners ask how fast your stock has turned in the past. These figures are illustrative only and not an offer.
Yavapai County, AZ stock-carrying businesses
Retail trade had 777 employer establishments in Yavapai County in 2023, employing 11,191 people, and 41.7% of those establishments had fewer than five employees (U.S. Census Bureau, County Business Patterns 2023). Wholesale trade had 168 employer establishments, 107 of them with fewer than five employees. Another 1,871 retail businesses reported receipts with no paid employees in 2024 (Census Nonemployer Statistics 2024).
Inventory loans for small businesses usually start with that history. See local employer figures and how partners look at each sector.
Turnover: the figure partners weigh most
Inventory turnover is cost of goods sold for a year divided by the average value of inventory held. A store that sells through its stock six times a year is turning it every two months; one that turns it twice holds each item about six months. Partners lend more readily against stock that moves quickly, because it converts back into cash before it loses value.
You can work it out from your own books: take last year's cost of goods sold, add the inventory value at the start and end of the year, divide that sum by two, and divide the first figure by the result. Bring the number to the first call.
Retail and wholesale look different on paper
In Yavapai County in 2023, 41.7% of retail employer establishments had fewer than five employees, against 63.7% of wholesale employers (U.S. Census Bureau, County Business Patterns 2023). Wholesalers in the county are mostly very small operations selling to other businesses, which often means invoices and receivables alongside stock; retailers are more often staffed stores selling to the public by card. Partners read those two cash patterns differently.
Stock money versus a credit line or working capital
Inventory financing is narrow: it buys goods. If you need to buy goods and also cover the payroll while they sell, a line of credit or working capital may cover both. The comparison table sets out the differences, and the process page explains what happens after you call.
By Deerline Advances · Updated
