Loan Usage
Inventory Financing
We can help you finance your inventory with an SBA loan
When inventory financing falls short, businesses suffer
Small businesses often face hurdles when seeking financing for inventory. Managing cash flow while maintaining sufficient stock levels is a constant balancing act. According to a recent survey 29% of small businesses report difficulty securing financing, and for many, inventory is one of the key hurdles.
The problem is often elevated in sectors like retail and manufacturing, where inventory management is vital to meeting customer demand. Without enough capital to purchase goods, small businesses risk losing sales, disrupting operations, and eroding customer trust. A recent study found that 82% of businesses fail due to cash flow issues, many of which stem from inadequate inventory financing.
Banks are often hesitant to provide loans for inventory purchases because this type of collateral can be difficult to value and quickly depreciates. Even when financing is available, interest rates can be high, and repayment terms may not align with the business’s revenue cycles, creating more stress for the owner.
Prevent business failure with effective inventory financing
The SBA loan program offers a powerful solution for small businesses seeking inventory financing. SBA 7a loans are one of the most popular options, providing working capital that can be used for inventory purchases. With loan amounts up to $5 million, businesses can maintain sufficient stock levels without draining cash reserves. The SBA guarantees a portion of these loans, making them more attractive to banks by reducing the risk. As a result, interest rates are often lower, and repayment terms are more flexible, aligning better with a business’s cash flow cycles.
For industries like retail and manufacturing, where inventory management is critical, SBA loans can make a significant difference. Business owners can use these funds to purchase goods upfront, ensuring they can meet customer demand without facing operational disruptions or losing sales.
First Bank of the Lake, with its deep expertise in SBA lending, has been instrumental in helping small businesses overcome inventory financing hurdles. With over $1.1 billion in SBA loans financed, First Bank of the Lake has partnered with countless businesses to provide the funds they need to grow and thrive.
The Numbers
in Loans 2024
Largest SBA Lender^
Small Businesses Helped 2020-2024
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The First Bank of the Lake rep and I bonded over faith, fishing and finance. They got my loan done in under 30 days in very, very trying circumstances.
Issac Reed
President, Reed’s Moving Services
If we ever need business capital, my first call would be to First Bank of the Lake. Why would I look elsewhere?
Barry Norfleet
Co-founder, Lifetime Green Coatings - Kentucky
I got my $345,000 SBA loan approved from First Bank of the Lake in 35 days!
Kasia Anderson
President, Woof Gang Bakery - Bradenton, FL
First Bank of the Lake was the best banking experience I have ever had.
Andy
Co-founder, President, Winter Park Ski Rental
The bank process was as easy it could be. The biggest thing is how transparent and reliable they were.
Tyler Green
Co-founder, President, Freelite AZ
My First Bank of the Lake rep was great – Easily the finest banker I have dealt with in my life.
Dan Billings
President, Tint World - San Antonio
Big thanks to Emil and the First Bank of the Lake team. I would recommend them to anyone else in a heartbeat and I would absolutely use them again.
Rock Katic
President, Perfect Moving
SBA Industry Loans
Talk to an SBA Inventory Financing Expert Today
We made $600MM in SBA loans in the last year alone
