Retailers—from boutiques and specialty goods stores to ecommerce sellers and pop-ups—must keep inventory stocked to meet customer demand. Yet purchasing inventory ties up cash. That’s where inventory loans come in: they free up working capital, smooth seasonality, and help fuel growth.
This guide covers top inventory financing options in Massachusetts, including SBA loans, asset-based lending, lines of credit, and fintech alternatives. You’ll also find practical tips to prepare, compare options, and improve approval odds.
Retail businesses often face:
High upfront costs for inventory
Seasonal stock needs (holidays, weather, trends)
Cash flow gaps due to supplier payment terms
Pressure to launch new SKUs or scale product lines
Competitive need to react quickly to demand
🛍 Inventory loans bridge the gap between ordering and selling—helping your store thrive without cash constraints.
Covers inventory, equipment, real estate, working capital
Loan size up to $5 million, term 5–10 years, fixed rates (~6–8%) accordfinancial.combusinesscapitalusa.comgudcapital.com
SBA Express option approves up to $350K in ~36 hours and funds within a week gudcapital.com
Retailers needing larger, longer-term inventory funding
Companies that prefer lower rates and longer amortization
Asset-based line secured by inventory
Advance up to ~20–65% of cost value accordfinancial.com+15en.wikipedia.org+15citizensbank.com+15
Draw, repay, and redraw as inventory turns
Ideal for ongoing seasonal restocking
Interest only on used portion
Collateral includes inventory, AR, sometimes real estate
Rates ~6–20%, terms 1–5 years
Lender pays supplier directly; repayment over time
Fast capital based on future card sales
Easy access, minimal paperwork — but expensive
Quick approval for mid‑prime borrowers, funded within days
Rates 9–18%, terms 1–5 years
Massachusetts banks offer flexible credit options:
Eastern Bank Express Loans – up to $100K, instant decision
Citizens Bank Hybrid Lines allow purchases of inventory or equipment
Community banks often bundle inventory into revolving lines
Massachusetts lenders like CDFIs can serve smaller retailers:
CDFIs include 31+ local loan funds backed by the CDFI Fund
MassDevelopment Microloans available up to $100K for working capital, inventory
Mill Cities Community Investments offer $5K–500K loans and invoice financing
Determine funding need: seasonal stock or growth
Choose loan type: SBA, line of credit, asset-based, or CDFI
Pre-qualify with lender or CDFI
Gather business plan, inventory reports, financials
Submit application and inventory appraisal
Close loan and receive funds
Monitor inventory turnover and repay accordingly
| Loan Type | Pros | Cons |
|---|---|---|
| SBA 7(a) | Low rate, long term, flexible funding | Slower process, needs documentation |
| Revolving inventory line | Fast draws, pay interest only on used amount | Requires sufficient collateral value |
| Asset-based/floorplan | Higher advance, scales with growth | Collateral held, may add covenants |
| Fintech / MCAs | Fast approval, minimal documentation | High cost, risk for long-term use |
| Bank lines/term loans | Trusted institutions, trusted relationships | May have stricter credit requirements |
| CDFI-based microloans | Flexible underwriting, supportive coaching | Smaller amounts, local eligibility requirement |
Business: Modern Home Boutique
Need: $120K seasonal inventory ahead of holidays
Solution:
$50K SBA Express loan via local credit union
$70K revolving inventory line through asset-based lender
Outcome:
Fully stocked for holiday sales
Increased inventory turnover by 25%
Improved cash flow and supplier negotiation
Keep updated inventory records and turnover reports
Maintain good credit (~680+)
Provide 2+ years of financials
Get professional inventory appraisals
Start with smaller CDFI or bank loans to build history
Use basics like statement of needs and repayment plan
Local banks: Eastern Bank, Citizens Bank, regional credit unions
MassDevelopment: Microloans for inventory and working capital
Mill Cities CDFI: Small inventory and receivables financing
SBA Massachusetts District Office, SCORE, and Massachusetts SBDC
Massachusetts retailers can secure the stock they need to compete and grow by using the right mix of financing:
Large and long-term? Go with SBA 7(a)
Regular restocking? Try a revolving inventory line
Asset-heavy operation? Use asset-based/floorplan financing
Fast, smaller needs? Consider fintech or CDFI microloans
Properly prepare with inventory data and credit history, connect with the right lenders, and you’ll free up cash to grow your retail business effectively.
Assess your inventory-funding needs
Collect key documents (financials, inventory data)
Compare options: bank, fintech, CDFI
Prequalify with 2–3 lenders
Apply and deploy funds to optimize stock
Measure results (sales, turnover, margins