Inventory Financing is a type of asset-based lending that allows businesses to borrow capital using their inventory as collateral. This funding solution helps retailers, wholesalers, manufacturers, and e-commerce companies purchase inventory in bulk, manage seasonal demand, or restock fast-moving products—without depleting cash reserves. It’s especially valuable for businesses with strong sales volume but limited working capital. Lenders assess the inventory’s value and lend a percentage of that value, allowing businesses to maintain healthy stock levels and meet customer demand while preserving operational liquidity.