Inventory financing is business funding used to buy stock ahead of sales, usually secured by the inventory and repaid as goods sell. Ravenside Lending, a small-business funding broker in Macon, GA, explains how it works, how liens are recorded and how it compares with a line of credit for Middle Georgia retailers and wholesalers. The approval call always rests with a lending partner.
| What it is | Funding to buy stock, usually secured by that stock |
|---|---|
| Repayment | Paid down as the goods sell, or on a fixed schedule |
| Collateral | The stock itself, noted publicly in a UCC financing statement |
| Bibb County retail | 759 stores with employees in 2023; 352 of them had under five staff (Census CBP) |
| Bibb County wholesale | 197 employer establishments (Census CBP 2023) |
| Who decides and prices | The lending partner, never Ravenside Lending |
How inventory financing works
A partner advances money to buy stock, often paying the supplier directly. The stock serves as collateral. As you sell, you pay the financing down, either from each sale, on a fixed schedule or when the term ends. Partners typically advance only part of the stock's value, because goods that sit on a shelf lose value and may need to be sold at a discount if the business cannot pay.
The partner will want to know how quickly your stock turns over. Fast-moving goods with a reliable resale value are easier to finance than slow, seasonal or highly specialized items.
Floor plan financing, explained
Floor plan financing is a form of inventory financing for high-value items that are tracked one by one, typically by serial number. Each item is financed when it arrives and paid off when it sells. The partner may inspect the stock periodically to check that every financed item is still on hand or has been paid for. It is common for dealers of equipment and other big-ticket goods.
Collateral and Georgia UCC filings
A partner that takes stock as collateral usually files a UCC financing statement to record its interest. In Georgia, those filings are indexed statewide and can be searched by debtor name; the Georgia UCC search guide explains how. Search your own business before applying. A blanket lien from an earlier lender may already cover your inventory, and a new partner will see it.
Retail and wholesale in Bibb County, GA
Retail trade had more employer establishments than any other sector in Bibb County, Georgia: 759 in 2023, with 11,287 paid employees and about $467.1 million in annual payroll. Of those stores, 46.4 percent had fewer than five employees. Wholesale trade had 197 employer establishments and 2,998 paid employees (U.S. Census Bureau, County Business Patterns 2023). Retail also led the count in the office's own ZIP code, 31204, with 131 of 613 employer establishments (U.S. Census Bureau, ZIP Code Business Patterns 2023).
Separately, 1,216 retail businesses in the county operated without paid employees in 2024 (U.S. Census Bureau, Nonemployer Statistics 2024). That count comes from a different program and year and is not added to the employer figures. Our Macon, GA page has the wider local picture.
How to finance inventory: three routes
| Inventory financing | Line of credit | Working capital loan | |
|---|---|---|---|
| Collateral | The stock itself | Depends on the partner; a blanket lien is common | Varies |
| Repayment | From sales, or on a set calendar | Repay draws, then redraw | Fixed installments |
| Best fit | Large, identifiable stock purchases | Frequent smaller restocks | One gap before a busy stretch |
| Watch for | Inspections and advance limits | Renewal and fees | Total cost of a short term |
Retailers restocking often in small amounts may find a business line of credit more flexible. A single large order before a busy season can fit working capital financing. The industry pages cover sector cash cycles in more depth.
Records an inventory partner will want
- Inventory reports or a recent stock count, with costs.
- The purchase orders or supplier invoices behind the stock being financed.
- Sales history showing how quickly stock turns over.
- Recent business bank statements.
- A list of existing liens and debts.
The four steps show where these documents come in.
By Ravenside Lending · Updated
