Quick answer
Peak-season stock usually has to be paid for weeks or months before it sells, creating a predictable cash gap. A business line of credit or revenue-linked finance can fund the order and be repaid as peak sales arrive. Apply once order quantities are confirmed rather than when invoices fall due, and plan for slower sell-through so you're not left repaying finance on unsold stock.
Key points
- Map the gap between paying the supplier and receiving sales revenue.
- Set up a facility in a quiet month, before you need it.
- Plan repayments for slower-than-hoped sell-through.
- Factor in freight, duties and storage, not just the supplier invoice.
- Typical gap
- Weeks to months
- Best fit
- Line of credit
- Also used
- Revenue-based, short-term loan
- Apply
- When quantities are confirmed
For many product businesses, a large slice of the year’s profit is made in a few busy weeks. The catch is that the stock for those weeks has to be ordered, paid for and shipped well beforehand — often while trading is quiet. Order too little and you sell out at the peak, handing sales to competitors. Order too much and you’re left with stock and debt in the new year. Stock finance is about funding the right amount at the right time.
How big is your stock gap?
Map the cash journey for your peak order:
| Step | Example timing (illustrative) |
|---|---|
| Supplier deposit | 16 weeks before peak |
| Balance before shipping | 10 weeks before peak |
| Freight, duties and insurance | 6–8 weeks before peak |
| Stock received and listed | 4 weeks before peak |
| Peak sales | Peak weeks |
| Platform or card payouts | During and after peak |
From the first deposit to the bulk of sales revenue can easily be four to five months. Multiply your landed cost by that period and you see why a business that is profitable over the year can still struggle to fund its best season. For marketplace sellers, payout schedules add more delay — see marketplace sellers.
Which finance suits seasonal stock?
Business line of credit. The most common fit. Draw for the deposit, draw again for the balance and freight, repay progressively as peak sales land. You only pay for what’s drawn, and the limit sits ready for next season.
Revenue-based finance. A lump sum repaid as a share of sales, so repayments rise in the peak and fall afterwards. Works best with strong platform data.
Short-term unsecured loan. A fixed amount for a single large order, repaid over a few months. Simple, but less flexible if sell-through is slower than planned.
Property-secured loan. For very large orders or newer businesses without enough trading history for unsecured limits.
Why should you set up finance early?
Applying when the supplier invoice is already overdue limits your options to whatever can fund fastest, which isn’t always the best fit. Setting up a line of credit in a quiet month — when your statements show steady trading and there’s no urgency — gives you time to compare and negotiate. It also means the facility is there for unexpected opportunities, such as a supplier offering a discount for early payment. If your peak is approaching, start a quick online enquiry now rather than later.
How do you avoid overstock?
Finance makes it possible to order more. It doesn’t make customers buy more. Before committing:
- Use last year’s sell-through by product, not just total sales.
- Allow for returns after peak, which can reduce payouts in the following weeks.
- Plan a markdown strategy for slow lines so stock converts to cash rather than sitting.
- Stagger orders where suppliers allow, with a second smaller order if early sales are strong.
- Model a slow peak — if sales come in at 70% of plan, can you still meet repayments?
A line of credit is particularly forgiving here, because you can repay more slowly in a weak season without restructuring, within the facility’s terms.
What costs are easy to forget?
The supplier invoice is only part of landed cost. Budget for:
- international freight and local delivery
- insurance in transit
- customs duties and import charges, where applicable
- GST on imports, which affects cash flow until claimed back on your BAS
- warehousing and fulfilment fees, including marketplace storage fees
- packaging and labelling
The ATO’s quarterly BAS due dates — 28 October, 28 February, 28 April and 28 July — are worth marking on your stock calendar too. A BAS falling just before or after your peak can change how much cash you need. See ATO and BAS bills.
What does a lender want to see for stock finance?
- Twelve months of bank statements showing last year’s peak
- Sales reports by month and, ideally, by product line
- Supplier quotes or pro-forma invoices for the order
- Your stock-on-hand and any aged inventory
- A simple cash-flow calendar for the season
If marketing spend is part of the peak plan, see ad spend and growth for testing payback before you scale.
What happens after the peak?
Plan the wind-down as carefully as the build-up. Once peak payouts have landed, repay the facility as quickly as is sensible, deal with slow lines before they age, and review what sold versus what you forecast. That review becomes the evidence for next year’s order — and for next year’s finance. A business that can show a lender “we drew this much, sold this much, and repaid by February” is a business lenders are happy to fund again.
Should you pay suppliers early for a discount?
Sometimes suppliers offer a discount for paying in full upfront rather than on terms. If the discount is larger than the cost of financing the payment for the same period, it can make sense to use a facility to capture it. Do the arithmetic in dollars, not percentages, and only take the discount if the stock is genuinely needed in that quantity.
Ready to stock up for your best season?
If your peak is coming and your order is bigger than your bank balance, a well-timed facility can bridge the gap. Send your online enquiry in about 60 seconds — there’s no credit check to enquire, your details go to one specialist instead of a list of lenders, and a real person will help match the facility to your stock calendar. Accurate figures for last year’s peak, this year’s order and landed costs mean we can get the structure right the first time.
Frequently asked questions
When should I apply for stock finance?
As soon as your order quantities are confirmed — ideally before the supplier deposit is due. A facility set up early gives you time and choice.
Can I use stock as security?
Some specialist lenders lend against inventory, but most online finance for stock is assessed on your cash flow. Property security is another option for larger orders.
What if the stock doesn't sell?
You still owe the repayments. That's why it's important to plan for slower sell-through and choose a facility with flexibility, such as a line of credit.
Should freight and duties be included?
Yes. The real cost of stock includes freight, insurance, duties and warehousing. Underestimating them is a common cause of cash shortfalls.