How money moves in this industry
A peak season can look strong in a profit forecast while tying up cash in inventory. Slow-moving stock can weaken the value of security and delay repayment.
A practical example
A store orders summer inventory in winter and needs the cash to pay suppliers before the first major sales period.
This illustrates a funding need; it is not a lender eligibility claim or a recommendation to borrow.
Common reasons to explore finance
- Seasonal inventory
- Store fit-outs
- Point-of-sale systems
- New locations
Equipment and assets that may be financed
Asset finance depends on the lender's product, the asset, its condition and the proposed term. Examples in this industry include:
- Shop fittings
- Refrigeration
- Delivery vehicles
Questions to prepare for a lender discussion
These are useful preparation questions, not a statement that any particular lender accepts this industry.
- How fast does stock turn?
- What are gross margins and return rates?
- How much revenue is online versus in-store?
Insurance and business continuity
Finance is one part of a business decision. This industry may also need to consider property, business interruption, cyber cover, depending on its activities, contracts and legal obligations. Our business insurance guide explains the concepts and links to official Australian sources.