Quick answer
For a stock funding call, have the supplier's order or pro-forma invoice and payment terms, how quickly this stock usually sells, any deposits already paid, and last season's sales for the same period if it's seasonal. The specialist will ask when the supplier needs paying and how long until the stock turns back into cash — that period is what the finance needs to cover.
Key points
- The key number is the time between paying the supplier and getting paid by customers.
- Bring the order or pro-forma invoice with the supplier's payment terms.
- Show sell-through history — last season's sales are powerful evidence.
- Repeat orders often suit a revolving limit more than a one-off loan.
Stock is money sitting on a shelf. Buying it is easy to understand — the question a specialist really wants answered is how long that money sits there before it walks out the door and comes back as sales.
Whether you’re a retailer stocking up for the busy season, a wholesaler with a big order to fill or a trade supplier offered a bulk discount, here’s how to prepare for the call.
What will the specialist ask?
- What are you buying, and from whom?
- When does the supplier need paying? Upfront, on delivery, 30 days?
- How long until it turns back into cash? Weeks, months, a season?
- Is it a regular order or a one-off? A seasonal build-up, a bulk discount, a new product line?
- Is any of it imported? Deposits, freight, duty and GST all land at different times.
- What did the same period look like last year?
What should I have ready?
| Have ready | Why |
|---|---|
| Supplier’s order or pro-forma invoice | Confirms what’s being bought and the payment due |
| Supplier payment terms | Shows when cash leaves |
| Sell-through history for similar stock | Shows when cash returns |
| Last season’s sales for the same period | Evidence that the stock will sell |
| Deposits already paid | Reduces the amount and shows commitment |
| Recent business bank statements (PDF) | Shows how the business trades |
For imported goods, add the shipping schedule and an estimate of freight, duty and GST, with the dates each is due. The call-prep tool will add anything that applies to your amount and state.
How do I work out how long the money is tied up?
A simple version: count the days from paying the supplier to getting paid by the customer. That’s your cash cycle for this stock.
Here’s an illustrative example for a homewares retailer buying for the Christmas period (made-up figures):
| Step | Date | Cash |
|---|---|---|
| Pay supplier deposit | 1 September | $12,000 out |
| Pay balance on shipment | 1 October | $28,000 out |
| Stock arrives and goes on sale | 20 October | — |
| Most of the stock sells | November to late December | $64,000 in, spread over the period |
The business needs roughly $40,000 for around three months, with repayment coming from a known selling season. That’s a clear story a specialist can match to options.
Once you’ve mapped your own cycle, request your stock funding call-back.
One-off loan or revolving limit?
It depends how often you’re buying.
- A one-off purchase — a bulk discount, a new line, a big order for a single customer — can suit a short loan repaid as the stock sells.
- Regular or seasonal buying often suits a revolving limit: draw it when you order, repay as stock sells, draw again next season.
- Larger or longer needs may suit property-secured options from $20,000 to $5,000,000.
- Trading businesses without property can look at unsecured options, typically $5,000 to $500,000, sized on turnover and bank statements.
Ask the specialist to compare the total cost in dollars of each over the period you’ll actually use the money. Our page on total cost questions explains how.
When is stock finance a bad idea?
When the stock won’t sell reliably. business.gov.au’s cash flow advice includes reducing excess stock and clearing slow-moving or obsolete lines to free up cash. Borrowing to buy more of something that’s already sitting on the shelf rarely ends well. A good specialist will ask about this, and you should ask yourself the same question.
Supplier terms are also worth a conversation before you borrow. business.gov.au lists trade credit among the common ways businesses fund themselves, and suppliers facing their own cost pressures may be open to deposits and staged payments. If rising supplier prices are the real problem, our guide to supplier price rises squeezing cash covers the steps to take first.
What should I ask before signing?
- Can I repay early as the stock sells, and does that reduce the cost?
- Is the stock itself the security, or something else?
- Can the limit be drawn again next season without a new application?
- What happens if the season is slower than expected?
How do seasonal businesses plan stock funding ahead?
If you buy for a peak season every year — Christmas retail, summer tourism, harvest, the back-to-school rush — the best time to arrange stock funding is well before the orders are due. Planning ahead means the finance conversation happens on your timeline, not the supplier’s.
A simple approach:
- Look back at last year. When did you pay suppliers, when did the stock sell, and what was your lowest bank balance in between?
- Adjust for this year. Bigger orders, new lines, different supplier terms, higher freight.
- Mark the gap. The weeks where money is out and hasn’t come back yet.
- Talk early. A call two or three months ahead lets you compare options calmly rather than in a rush.
Owners who repeat this every year often find a revolving limit suits them better than a fresh loan each season. The limit sits ready, you draw it when orders are due, and repay it as the season’s sales come in.
The same thinking applies if you’re adding a new product line: estimate how quickly it will sell, and be conservative. New lines rarely sell as fast as established ones in their first season.
Ready to talk stock?
When you can show what you’re buying, when it’s paid for and when it sells, the call gets specific quickly. You won’t face a credit check when you ask, your request isn’t shared with a crowd of other lenders, and a real person reads it before ringing.
Please give us the real order value, your state and any property you own — accurate answers are what let us match you with the right option first time. Pick a time and we’ll ring you.
Frequently asked questions
What's sell-through and why will I be asked about it?
It's how quickly stock sells once it arrives. It tells the specialist how long the money is tied up, which decides how long the finance needs to run and how it can be repaid.
Can I fund a one-off bulk buy at a discount?
Often, yes. Bring the offer, the normal price and your usual sell-through so the specialist can see how the discount compares with the cost of finance over the time the stock takes to sell.
Should I use supplier credit instead?
If a supplier will extend terms, that's often the simplest option. business.gov.au lists trade credit among the common funding options. Finance can fill the gap when terms are short or a new supplier wants payment upfront.
What about imported stock?
Mention it early. Imported stock usually involves deposits, freight, duty and GST at different times before goods arrive, which can widen the cash gap.
Is holding more stock always a good idea?
Not always. business.gov.au notes that reducing excess stock can free up cash. The best stock funding pays for goods that sell reliably, not slow lines.