Edit Content

Delivering Loans
God speed!

your ultimate one-stop-shop for stock purchase

Borrow from £5,000 to £500,000 to buy more goods, and grow your business

LoanTube is a credit broker not a lender. You must be a UK based business.

If you sell goods and are struggling with cash flow, you should look into loans for stock purchase. It can help you buy the stock or inventory to keep your business running. These can also be used to re-negotiate contracts with suppliers to get better deals. Here, we’ll offer you all the information you need so you can understand the concept, learn where to go for a stock purchase loan, know what you should have when applying for credit, understand the advantages and disadvantages and anything else you might require.

Get funded with ease in
3 simple steps


Tell us how much you need, for how long you need and some details about your business.


Our loan experts will search the market and find you the best loans.


Get your money fast, sometimes in just a few hours.

We've Partnered with the Best in the Business

Offers from highly reputed British Lenders to help with your financial needs.
Brand Name : Brand Short Description Type Here.
Brand Name : Brand Short Description Type Here.
Brand Name : Brand Short Description Type Here.
Brand Name : Brand Short Description Type Here.
Brand Name : Brand Short Description Type Here.
Brand Name : Brand Short Description Type Here.
Brand Name : Brand Short Description Type Here.
Brand Name : Brand Short Description Type Here.

What is a loan for stock purchase?

Contrary to what you might expect, if you apply for a loan for stock purchase, no money goes directly into the company’s bank account. Instead, the lender will pay money directly to your company’s supplier in exchange for a set quantity of goods, which you then sell on. The bank themselves would be named on the invoice. For example, if you run a bike shop, you might apply for a loan for stock purchase to buy, say, 100 bikes. The bank would pay the bike manufacturer, the bikes would be delivered to you, and you would then sell them on at a profit, and repay the bank, plus interest. This can be scaled up as you require, and different lenders will be able to assist you.

How much do loans for stock purchase cost?

This is worked out via percentages. You can borrow up to 100% of the price of the stock, and then interest on that is usually between 1.2%-3% for every 30 days until the money is paid back in full. So for example, if you borrowed £10,000 for a month, you would pay back £10,300. This is a simplified example, and you need to make sure that you get clear estimates when you apply.

Loans for stock purchase often have additional fees, so you need to read through the paperwork thoroughly to make sure you’re not going to end up with an unmanageable amount of debt. You would usually be expected to repay the loan within four months, so keep this in mind if you have a product which takes time to move. All of this should be discussed with the lender when you apply for the loan.

Educated guesses aren't good enough

You choose the terms, we do the math.
Check your affordibility with our Business Loan calculator and make an informed financial decision.

Business Loan calculator

What is the purpose of your loan ?
How much do you wish to borrow?
What repayment term would you like to choose ?

Representative Example

Loan Amount


Loan Term

3 Years

Total repayment


Monthly repayment





14.4% p.a (fixed)

*The rate you get will depend on your individual, financial circumstances. Late repayment can cause you serious money problems. For more information, go to MONEYADVICESERVICE.ORG.UK.

What will financiers look for when you apply for a loan for stock purchase?

Banks will typically look at how good your suppliers are, and how profitable your business is. There may be some discussion of possible pitfalls, so make sure you’re all brushed up on your strategies. They need to make sure that they’re investing in something high quality and easy to sell on, so they’re not left with products and you don’t default on your payment. You will need to be able to show a past record of sales and purchases, so loans for stock purchases are not suitable for new businesses or startups.

You will also need to meet certain criteria to be eligible for a loan for stock purchase. The company should be registered in the UK and the director should be a UK resident. You’ll need to have bought products from the proposed wholesaler beforehand, and many banks will ask you to prove a relationship of at least one year. There may be additional requirements, depending on which lender you decide to go to.

What are the advantages of stock purchase?

There are lots of great things about this type of financing, such as:

It’s a quick way to become liquid and get stock moving
They protect you from market volatility
Loans for stock purchase are a good way to get products ahead of busy periods for sales, like Christmas
You should get a fixed interest rate
The whole process should take about 2-3 working days, so you can get started promptly. There are some companies who claim to be able to work even faster, which is useful if you get a surge of interest in your business and you need to increase supply
Covering your product purchases with a loan frees up money to invest in training, premises or anything else you like
If you’re buying stock from a place with different currency, banks can often pay in that currency and prevent you from being overcharged on exchange rates
You may be able to buy larger amounts in bulk, which could allow you to negotiate a discount and increases your purchasing power
Working with banks means spending time with other people who know the industry and may be able to make useful suggestions for your business. Some financiers will also offer deals specialised to your specific sector

What is Trade Finance?

Trade finance is similar to loans for stock purchase in that both cases, creditors will lend money to businesses which goes directly to the manufacturers of products, but with trade finance, the products already have buyers. For example, if someone purchased a bike from a bike shop, they might wait a few days for it to be delivered. This would give the bike shop time to go to a bank, apply for trade finance, and then receive the bike to pass on to the buyer. Loans for stock purchase work on the assumption that your business will hold on to the physical product for some time, possibly in a warehouse or in a shop, before being purchased by a customer.

How do I get a loan for stock purchase?

If you’d like to try this method of financing, you’ll need to contact a bank or other financial organisation. They will ask some questions about your business, from mundane things like your address to more complicated issues like your projected profits for the next year and a full description of your USP and what your day to day operations look like. This form can usually be done online, although you should be able to speak to someone if you want. This is recommended, so you know all of the details of your contract. The bank will then contact you to discuss your form and let you know if you’ve been approved.

It’s also likely that the creditors will want to see a profit of more than 20%. If you’re using the opportunity of a loan for stock purchase to convert currency or buy in bulk, you should take this into consideration and make sure that it’s clear when you submit your application. Banks may ask why you’re buying excess stock, so you need to explain the increased demand or decreased price.

In some cases, you may also need a guarantor who owns a home in the UK, with the understanding that they may be liable if you are not able to move the products. If you are not the guarantor, it is a good idea to make sure they have copies of all documents and an opportunity to speak to the bank when you discuss the loan.

Working out cash flow problems can be a challenge for businesses. If you’re not liquid, you might struggle to buy stock to convert into profit, which is extremely frustrating. Loans for stock purchase are a great way to resolve this problem, and comes with the added benefit of allowing you to trade in different currencies and get better deals than you would if you were alone. If you’re looking for a way to buy goods more efficiently and increase your profits, loans for stock purchase might be perfect for you. Please be aware that all of this information is for businesses in the UK and may not apply to other areas.

Business loans to cover your every need

Supporting all your financial needs through thick and thin.
Fill up a quick application to find best loan deals for your:

Business Expansion


Working Capital

Bills payment

Stock Purchase

Machinery Purchase

Other Purposes

Why apply business loans with LoanTube?

Get same day business loans at best rates.
Experience hassle-free borrowing and unmatched transparency with LoanTube

Loans from £5,000 to £500,000

Same Day Funding

Single Application Form

Offers from Multiple Lenders

Convenient & Transparent

Dedicated Loan Officer

Pledge of Integrity

Pledge of Integrity

We do not sell your data, unsolicited, with any third party firms. Find your loan with LoanTube without risking your data.

Apply for business loans with Confidence


What is a small business loan?

Lenders make small business loans, especially for small businesses that don’t have lots of assets or cash in reserve. That means that they often need to borrow money at affordable rates to solve short-term cash flow issues, or if they need to invest quickly in an opportunity. Small business loans tend to be flexible and offer choices of repayment options.

What can you use a small business loan for?

Lenders understand that small businesses face unexpected issues with their finances. You can use small business loans to help with temporary cash flow problems, like a late-paying client or an unexpected bill. You can also use finance to help your business grow and invest in the future. For example, when you want to buy stock and equipment to cover a rush of orders.

Who Can Get a Small Business Loan?

Lenders make small business loans to suit the needs of a range of small businesses. Whether you have a Limited Company, a start-up, or you’re a sole trader, there will be a loan that suits your needs. Some lenders offer loans for people with poor credit or unusual circumstances. That’s where using a loan broker like LoanTube comes in handy.

What types of loans are there?

Small business loans can cover a variety of UK business needs. Secured loans usually give you lower repayments and let you borrow more, but you could lose your collateral if you can’t keep up repayments. Unsecured loans give you faster access to money with fewer checks. However, you pay a higher rate of interest and often can’t borrow so much. As well as these, you could choose Business Credit Lines or Revolving Credit Facilities. These types of loans give you access to credit, like an overdraft, but you don’t have to use all of it. Furthermore, you only pay interest on what you borrow.

How long can a loan last?

Depending on the type you choose, your repayments could last a few months to up to five years. Usually, the shorter the term of the loan, the greater the repayments are. Most people want to pay their loans off as soon as possible, however, it’s often better to have affordable monthly repayments for a longer term than struggle with fewer, unaffordable repayments.

Can you get a small business loan with bad credit?

You can find it hard to get finance if you have bad credit or you’ve been turned down by lenders in the past. However, some lenders specialise in bad credit loans and will give you finance if they are happy that you meet certain criteria. That’s when using a loan broker, like LoanTube, can be helpful. LoanTube will search the market for you and advise you on lenders likely to give you credit, saving you time and applications.

How to choose the right kind of loan

We know the loan market can be confusing. There are so many lenders and loan products, it’s hard to know where to start, and no one wants to be turned down for credit. When you choose a loan, you need to make sure the repayments are affordable. You also need to know what will happen if you can’t keep up repayments, or if you want to repay early. LoanTube explains the different options open to you and we give you our expert advice.

How fast can you get a loan?

If you need money fast, you could get a quick loan within 24 hours of applying, as long as you meet the lender’s requirements. Often, repayment interest will be higher than other small business loans and you may need to repay what you owe more quickly.

How much can you borrow?

LoanTube works with many lenders across the United Kingdom. You could borrow between £5,000 and £500,000.

Valued Customers With Valuable Feedback

Feedbacks from our happy users. Become one of them.
-Matt Thiele
Read More
Very helpful customer service and follow up care. Quick and effecient and represent good legitimate companies. Would use them again.
-Elijah Kamara
Read More
I am so pleased, within a few hours my loan was approved, and I received the loan in my account that great.
-Donovan Hay
Read More
This website was very helpful and I really appreciate your time thanks for your support merry Christmas to you all.
-Laura Treimane-Freimane
Read More
Very fast, very nice. Will make sure that you get money. Perfect thanks
-Maria Sousa
Read More
Simple application online. Good value for money.

Need fast business loan?

LoanTube to your rescue!

Start your loan application today.


LoanTube helps UK firms access business finance through multiple direct lenders. We are an introducer and do not provide loans ourselves.

Think carefully before securing debts against your home or your assets. Your home and assets may be repossessed if you fail to keep up with repayments on debts secured against it.

All loan approvals & quotes are subject to credit checks and affordability requirements by lenders. If your business meet the lender’s criterion, you can borrow the money. We as a broker make an attempt to process your application with the most suitable lenders in our panel.

LoanTube is a credit broker and not a lender.

Warning: Late repayment can cause you serious money problems. For more information, go to MONEYADVICESERVICE.ORG.UK

Representative APR Example

The rate you are offered will depend on your individual circumstances.

Representative APR Example: Amount of credit: £50,000 for 24 months at £2,339.38 per month. Total amount repayable of £57,348.69 Interest: £7,348.69 Interest rate: 14.4% pa (fixed).

14.4% APR Representative. Loan term lengths between 3 and 60 months.

By continuing to use our website, you agree to accept our cookies policy