Inventory is the only asset that makes you money by leaving. Every unit on your lot or shelf is a bet that it sells for more than it cost to hold - and the businesses that win are the ones that can place more good bets at once. Inventory financing exists to raise that ceiling.
This guide covers the structures available, what they cost, and the discipline that separates dealers who scale on financed inventory from those who drown in it.
Inventory financing vs. floor planning: what's the difference?
Floor planning is unit-specific: each vehicle is individually floored, tracked and paid off (see our complete floor plan guide). General inventory financing is looser - a revolving line or term loan secured by your inventory as a whole, sized off a percentage of its value (typically 50-80%).
Dealers often use both: a floor plan for titled vehicles and an inventory line for parts, accessories, or non-titled stock. Repair shops and parts operations usually want the general line.
What the numbers look like
| Structure | Advance | Typical cost | Fits |
|---|---|---|---|
| Floor plan (unit-based) | 90-100% per unit | 9-13% APR + fees | Vehicle dealers |
| Inventory line of credit | 50-80% of value | 10-18% APR | Parts, accessories, mixed stock |
| Inventory term loan | Fixed amount | 10-20% APR | One-time stock-up (season, expansion) |
| PO financing | Per order | 1.5-3.5%/30 days | Big confirmed orders beyond your cash |
The metric that decides everything
GMROI - gross margin return on inventory investment. If borrowing at 1.2%/month lets you stock inventory that returns 8%/month in gross margin, financing scales your profit. If a category turns slowly at thin margin, no financing structure will save it. Finance your winners.
60-Second Funding Check
No credit pull. No obligation. Just a straight answer.
What do you need funding for?
Qualifying and structuring it right
- 6+ months of sales history showing consistent turns
- Basic inventory reporting (your DMS or POS export is usually enough)
- Revenue of $15K+/month; lines scale with proven throughput
- Start smaller than you're offered - prove the turn, then expand the line
Built for inventory-heavy businesses
Dealerun was built around businesses that live and die by stock - dealers, parts operations, equipment resellers. Our partners size lines off how your inventory actually turns, not a generic formula. Up to $5M, decisions in hours.
Size your inventory line
Two minutes to see what your sales history qualifies you for. No credit impact.
FAQ
Can I get inventory financing with seasonal sales?+
Yes - seasonality is normal in automotive. Lenders look at your trailing 12 months, not your slowest quarter. Seasonal lines that expand before your peak and contract after are a common structure.
Does the lender take control of my inventory?+
You keep operating normally. The lender files a UCC lien on inventory and may do periodic checks or reporting. Unit-tracked floor plans are stricter (audits); general inventory lines are lighter touch.
What happens if inventory doesn't sell?+
You still owe the money - that's the discipline. Aged stock triggers curtailments on floor plans or borrowing-base pressure on lines. Have a wholesale exit plan for anything past 90 days.
Get a callback from a funding specialist
Real questions, straight answers - no scripts, no pressure.
No credit impact. We never sell your information.
Ready to put this to work?
See what funding your business qualifies for - it takes two minutes and won't affect your credit.