The short answer
Stock finance can describe funding for a new inventory purchase or borrowing secured against stock a business already owns. The requirements differ. Hello introduces established UK limited companies and LLPs with at least £1 million in annual revenue for supplier payment finance, with terms of up to 12 months subject to approval. The provider assesses the business, supplier, purchase and repayment capacity.
Are you buying stock or borrowing against it?
A search for “stock finance UK” can lead to two different conversations. In the first, your business needs money to pay a supplier for new goods. In the second, you already own inventory and want to use its value as security for funding. Both concern stock, but the application and repayment arrangements can be quite different.
New purchase
Fund the supplier payment
The starting point is an outgoing bill: what you want to buy, who supplies it, when payment is due and how your business will repay the funding.
Existing inventory
Borrow against stock value
The starting point is inventory you own. An asset-based lender considers eligible assets, their value and the security arrangement, as well as the business.
The British Business Bank identifies inventory as one of the assets that can support asset-based lending. That does not mean a supplier payment facility automatically places a lending value on your warehouse contents. Ask which structure is being offered before comparing amounts or charges.
This guide focuses on funding a new supplier purchase through Hello. For the timing between purchase, sale and customer receipt, see our inventory finance and cash-flow guide.
Who is the service designed for?
Hello focuses on established UK limited companies and LLPs with annual revenue of at least £1 million. A business meeting that starting profile can explore funding of up to £1 million, with repayment terms of up to 12 months. Those are potential limits, not an amount or term automatically available to every applicant.
The provider makes the credit decision. Revenue alone does not establish affordability: existing borrowing, the pattern of cash receipts, trading performance and the proposed purchase all affect the assessment. A seasonal business with a large annual turnover can still have a difficult repayment month.
Prepare a clear account of what the stock purchase changes. Is it replenishment of a proven line, preparation for a seasonal peak or an entirely new product? Explain the evidence behind expected sales, rather than presenting every unit as if it already had a buyer. The provider will confirm the full criteria and documents it needs.
If the business is a startup, sole trader or below the revenue profile, this particular introduction route may not fit. A general search result for inventory finance does not imply that every product serves the same business size or legal structure.
What kinds of inventory could you finance?
| Inventory need | Practical example | Useful evidence |
|---|---|---|
| Regular replenishment | Restocking a product range with established demand. | Recent sales, current stock levels and the supplier invoice. |
| Seasonal stock | Goods for a defined trading peak. | The selling window, order lead time and a slower-sales scenario. |
| Raw materials | Inputs for a planned production run. | Production timing and how finished goods turn into receipts. |
| Components and parts | Items needed to complete products or customer work. | Order schedules, assembly times and supplier details. |
| Wholesale goods | A larger batch purchased for resale. | Expected buyers, margins, storage and payment terms. |
| Overseas inventory | A purchase from an international manufacturer. | Deposit, balance, currency, shipment and landed-cost details. |
These are possible use cases, not an approved-goods list. A provider may place conditions on goods, suppliers, industries or payment destinations. Perishable, highly specialised or quickly obsolete products deserve particular attention in your own planning because a delay can change their commercial value.
Inventory is only part of the wider vendor-payment opportunity. Your business may also need to pay for freight, packaging, software or professional services. Our guide to funding different vendor bills explains why those invoices should be assessed on their own terms.
A £45,000 order: the questions behind eligibility
Imagine a distributor buying £45,000 of components. Its supplier wants payment before dispatch, and the distributor expects to sell the batch across several customer orders. There is a genuine purchase, but that alone does not answer whether a funding plan works.
- Confirm the complete commitment. Does £45,000 include the full invoice? Add any separate freight, storage and other purchase costs to the cash forecast.
- Separate orders from expectations. Identify which customers have committed and which sales remain forecasts. Do not count both as equally certain receipts.
- Put receipts on dates. A sale on credit does not put cash in the bank on the delivery day. Use the customer's payment terms and a realistic collection assumption.
- Overlay the actual finance schedule. Compare every repayment with the cash available in that period. A term of up to 12 months gives a possible horizon, not a reason to choose the longest term automatically.
- Test a slower batch. Consider what happens if part of the order sells later or needs discounting. Identify the cash that would cover the repayments in the meantime.
This example contains no assumed interest rate or approval result. Its purpose is to make the application more concrete. The strongest explanation connects the purchase to evidence and repayment capacity rather than relying on the size of the opportunity.
What should you have ready?
You can start with the basic company and contact details requested in the enquiry form. For a later provider assessment, it helps to have the purchase information organised in one place.
- Business details: the correct registered company name and number, trading activity and current financial information the provider requests.
- Purchase documents: a quotation or invoice identifying the supplier, goods, quantity, currency, amount and payment deadline.
- Supplier terms: any deposit, staged balance, dispatch condition, cancellation term or return arrangement.
- Sales evidence: confirmed orders where relevant, recent demand for repeat lines and the assumptions behind forecast sales.
- Cash commitments: existing repayments and the dates other large bills will fall due.
- International details: the intended recipient, supported destination, payment currency and costs beyond the goods invoice.
This is a preparation checklist, not a statement that every document is required for every application. Do not put bank details or financial statements into the initial contact form. The provider can specify the appropriate process for any supporting information.
Compare the offer with the stock cycle
A longer term can reduce the amount due in each period, depending on the offer, but it may also increase the total cost. Compare the complete repayment amount and timing with the margin the purchase is expected to generate. Keep enough room for slower sales, returns and other commitments.
If a supplier offers a discount for a larger order, calculate the saving in pounds and compare it with the full finance and holding costs. Buying more stock is not automatically cheaper once storage, markdowns and cash tied up in unsold units are included.
Hello charges £0 for the introduction. The provider's finance charges and any other agreed costs are separate. Confirm the first payment date, the available term, security or personal guarantee requirements and early-settlement treatment before committing to the order.
For an international purchase, payments in most currencies can be considered, subject to the destination and transaction checks. Use the overseas supplier guide to distinguish the supplier's invoice currency from the currency and amount your business will repay.
Questions, answered.
How does inventory finance work, and what are the requirements?
It depends on the structure. Supplier payment finance funds an approved outgoing purchase, while stock-backed lending uses existing inventory as part of the security. For the Hello introduction route, the starting profile is an established UK limited company or LLP with at least £1 million annual revenue; the provider assesses the full application.
Can I use stock finance for any type of inventory?
There is no automatic approval for every type of goods. Explain what you are buying, who supplies it and how it will generate receipts. The provider confirms eligible products, industries, suppliers and payment destinations.
Can seasonal stock be financed?
Seasonal purchases can be considered. Include the delivery date, selling window, expected customer receipts and a plan for slower sales. The repayment schedule must remain manageable if the season underperforms.
Do I need a confirmed customer order?
A confirmed order is not the starting point for every stock funding structure. General replenishment and purchase-order finance are different cases. Tell the provider which sales are committed and which are forecasts.
Can stock finance run for 12 months?
Eligible supplier payments can be considered for repayment terms of up to 12 months. The actual term depends on the provider’s assessment and offer. Compare the term with the expected stock cycle and total cost.
Does meeting the revenue threshold guarantee approval?
No. Revenue is only part of the starting profile. The provider also assesses the business’s financial position, repayment capacity and proposed transaction before deciding whether to lend and on what terms.
Sources and scope
General background sources, checked 17 October 2026. Examples and planning checklists are our own illustrations.
This guide is general information, not tailored financial advice. Finance availability and terms depend on the provider’s assessment. Consider independent advice before committing.
