Asset-Based Lending: A Proven Tool for Retail Inventory Financing

Whether you're a specialty retailer, a direct marketer or e-commerce shop owner, get liquidity and credit facilities by leveraging your inventory.

Retail businesses can benefit in many ways with flexible financing from Accord.

Financing options for retailers operating in the mid-market space are limited, but Accord offers a retail inventory financing solution by providing asset-based loans to retailers using their inventory as collateral. 

Competition for the consumer’s dollar is fierce and is coming from all sides.  Global, omni-channel retailers have changed the retail industry at a dizzying rate.  The availability of virtually everything online and the resulting ability to compare prices, not to mention home delivery, means that as a retailer, you need to devote your energy to buying, merchandising and selling, and not spend time worrying about your day-to-day financial needs. 

From digital marketing to ever-evolving payment options, the retail landscape continues to change but what has not changed is that as a retailer, you need to have what your customers want, at a competitive price and on a timely basis.  International apparel retailers are able to go from runway to store in under 4 weeks, constantly offering the freshest merchandise.  This drives consumer traffic into your competitor’s brick and mortar locations or onto their online platforms, so you have to fight back with the same. Without a revolving credit facility providing you with retail inventory financing, you are dependent on customer purchases for cash flow and if sales are sluggish or it is off-season, you may not have the cash to purchase inventory.  Retail inventory financing allows you to purchase fresh inventory and ensure that you always have merchandise available.

What are the benefits of an asset-based retail inventory financing facility?

The benefits of asset-based lending to finance retail operations are numerous.  Using your retail inventory as collateral for a revolving asset-based loan facility unlocks the value in your inventory and converts it into the working capital you need to buy merchandise and pay expenses.  The flexibility of asset-based retail inventory financing can be better suited to your needs as a retailer than a conventional line of credit. With no covenants, seasonal dips and peaks are not an issue since only the value of the assets, in this case the inventory, determines your available funding.  We know it is not unusual to see a year made in only a couple of months.  And while, it may seem absurd to other entrepreneurs, in some cases the weather is a key factor…and as yet, no one has been able to figure out how to take this out of the equation!

We are really good at retail inventory financing.

Accord understands the challenges facing the retail industry.  We have been doing retail inventory financing and giving credit to retailers across North America for nearly 40 years. Our team of seasoned professionals will help structure the right retail inventory financing package for you.  Not only that, we are also entrepreneurs so we work closely with you when unexpected issues arise.  We are very quick to respond to your request and once you have a retail inventory financing facility with Accord, you will experience accessibility to decision-makers that is second to none.

What if my circumstances are more complex?

Besides the everyday need for working capital there are many circumstances a retailer can face which make asset-based lending an even better alternative to conventional bank lines.  If your situation involves growth and expansion - organic or through acquisition - the absence of covenants and debt to equity conditions – is where the benefits of asset-based lending really stand out.   You can use retail inventory financing to provide the extra funds you need to grow by increasing your online presence or investing in digital marketing.  On the flip side, closures and downsizing have affected the retail industry to a large degree over the past several years.  So if you are undergoing a turnaround or need debtor-in-possession financing, we can help there too. 

What are the criteria to qualify for an asset-based loan using my retail inventory as collateral? 

If you need between $1 and $20 million and have current merchandise and an inventory management system that can provide timely information, you fit within our criteria to provide you with a retail inventory financing facility.  We appraise the inventory and lend against this value. 

Virtually all types inventory can qualify for retail inventory financing. If your inventory can be appraised, it likely will qualify.  Some of the types of retailers we finance include: 

  • Furniture
  • Décor
  • Footwear & Apparel
  • Sporting goods
  • Home improvement
  • Electronics
  • Pet supply and
  • Junior department stores

We are dedicated to understanding the unique needs and challenges of your retail business—this ensures that our comprehensive financing solutions are packaged specifically for you and your industry.

Give us a call and get to work with North America’s premier independent finance company.


Retail financing refers to financing options available to retailers. These loan facilities typically leverage your inventory as collateral.

We offer a number of asset-based loan facilities, which can be used by retailers like you to finance your inventory and other working capital needs.

Using your assets as collateral, you can take advantage of retail inventory financing which leverages your inventory or supply chain financing to finance the purchase of inventory through overseas supply chains. Other finance strategies may include accounts receivable financing, or for smaller retailers, small business loans.

Asset-based retail financing provides maximum flexibility in a variety of circumstances such as

  • refinancing
  • rapid increase in customer orders
  • outstanding accounts receivables

No matter what challenges your company may be facing, retail financing is the solution.

Retail financing is offered to a vast majority of retailers, including:

  • furniture
  • sporting goods
  • electronics

Yes! Get financing for your retail business, whether large or small, with small business financing loans up to $75,000 customized for your company’s needs. Call us to discuss how you can benefit from small business financing specifically tailored for retailers: +1-844-932-9940 (Canada) / +1-844-725-4225 (US)

Retail financing moves at the speed of your business; so you can quickly obtain the working capital you need. Financing can often be approved in as little as a few weeks.

The best retail financing companies have a long record of success with a variety of retail clients, like Accord, where we have been working with retailers for over 40 years, and are able to provide your company with flexible terms that meet your timelines and enable your business to prosper.

Do you have a question or ready to take the next step?

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