Quarryfield Capital Group, a small-business funding broker in Hillsboro, Oregon, arranges inventory financing through lending partners for retailers, wholesalers and other businesses that buy stock before they sell it. The goods typically secure the funding, and repayment follows sales or a fixed schedule. Partners review stock reports, sales records and existing liens, then decide and set terms.
| Pays for | Finished goods and stock for resale |
|---|---|
| Collateral | Usually the inventory being bought |
| Repayment | From sell-through, or on calendar dates |
| Paperwork | Stock reports, sales history, supplier invoices |
| Filed lien | A UCC financing statement is common |
| Who decides | The lending partner |
How inventory financing works
Here the collateral is merchandise: goods a company holds and intends to resell. The partner advances part of the stock's value, and the stock serves as collateral. Some structures work like a loan with fixed payments; others are revolving and rise or fall with the value of what is on hand. Either way, the money and the merchandise are linked: as stock sells, the cash from those sales pays the funding back.
Partners usually advance less than the full cost of the goods, because they have to allow for items that sell slowly, spoil, go out of style or get marked down. The share they advance depends on the type of goods and how easily they could be resold.
UCC filings and existing liens
Because the inventory secures the deal, the partner will normally file a UCC financing statement with the Oregon Secretary of State describing its claim. If another lender already holds a general lien on business assets, including inventory, the new partner may need that lender to subordinate or release its claim first.
Before you apply, find out what is already filed against the business. An old equipment lender or a past advance can show up on a lien search years later, and a search of Secretary of State records turns up those filings. Partners will run the same search on their side.
Shelves and warehouses around Washington County, OR
Washington County, OR had 1,588 retail employer establishments in 2023, employing 32,810 people, and 763 wholesale establishments employing 15,738 (County Business Patterns 2023). Retail stores here skew larger than the county average: only 34.7% had fewer than five employees, against 52.6% for all employers. That points to stores that carry meaningful stock and have to fund it before it sells.
The county also had 3,477 retail businesses with no paid employees in 2024 (Nonemployer Statistics 2024). Those are often online sellers and small shops buying in smaller lots, where a modest line of credit can do the same job with less paperwork.
Stock money three ways
| Inventory financing | Line of credit | Working capital | |
|---|---|---|---|
| Tied to | The goods being bought | A limit, not specific goods | A lump sum, not specific goods |
| Best for | Large orders that sell on a cycle | Smaller, frequent restocking | A one-time order with a clear payback date |
| Paperwork | Stock reports and sales data | Bank statements and credit | Bank statements |
| Watch for | Advance share and reporting duties | Draw fees and annual review | Debits that keep landing when sales dip |
Working capital and lines of credit each have their own pages; the full comparison sets all six options side by side.
Reporting duties after funding
Inventory funding rarely ends at signing. Many partners ask for a stock report every month or quarter, and some send someone to count. If the value of what is on hand falls below what the agreement requires, the business may have to pay down the balance or add collateral. Build that reporting into the month-end routine before the first order arrives, so a missed report does not become a technical default.
It also helps to agree in advance how returns, damaged goods and slow sellers are treated in the report. A shelf of last year's models still counts as stock to you, but a partner may value it at a steep discount.
First stores and web-only sellers
Owners opening a first store often ask about inventory loans before they have sales history. Most inventory partners want to see how fast goods turn, which a new business cannot yet show. In that case, partners may look at the owner's experience, supplier terms and any capital already invested, or steer the request toward equipment for fixtures and a smaller opening order.
E-commerce sellers face a related question: stock held at a third-party warehouse can be harder for a partner to verify. Expect questions about where goods are stored and how sales are recorded.
What partners usually review
- Recent stock reports or an inventory count.
- Sales history and how quickly stock turns.
- Supplier invoices for the order being financed.
- Existing liens and any funding already in place.
How a request works describes our part, the sector pages cover retail alongside the other confirmed sectors, and local figures and contacts are on our Hillsboro, OR page.
By Quarryfield Capital Group · Updated