Slatemont Capital Group, a small-business funding broker in Bismarck, North Dakota, introduces retailers and wholesalers to lending partners for inventory financing: funds to buy stock, usually secured by that stock and recorded with a UCC filing. Floor plan lines are one version. Partners review sales history and stock turnover, decide and set every term.
| Pays for | Goods ordered before customers buy them |
|---|---|
| Collateral | Usually the inventory itself, via a UCC filing |
| Retail payrolls in Burleigh County, ND | 380 stores with 6,896 on payroll (CBP 2023) |
| Wholesale employers | 152 establishments (CBP 2023) |
| Decision | The lending partner's alone |
How inventory financing works
A partner advances funds to buy stock, often paying the supplier directly. The stock secures the funding, and the business repays either as items sell or on a fixed schedule. Partners usually advance less than the full cost of the goods, because stock that does not sell is worth less to them than its purchase price.
The security interest is normally recorded with a UCC financing statement. Our North Dakota UCC search guide shows how to see what is already filed against your business, which partners will check too.
Floor plan financing, with a worked example
Floor plan financing is inventory financing for high-value items that are tracked one by one, such as appliances, equipment or vehicles on a dealer lot. A unit goes onto the line when it is delivered and comes off when a customer buys it.
Hypothetical example, not an offer: a Bismarck, ND outdoor-power-equipment dealer takes delivery of twelve mowers on a floor plan line. The partner pays the manufacturer. When mower number four sells, the dealer repays that unit's financed amount. Units still unsold after the period the agreement allows may require partial principal payments, often called curtailments, and the partner may audit the lot to count what is there.
Common floor plan requirements include a supplier relationship the partner accepts, unit-level record keeping, permission for periodic audits, and insurance on the stock.
Inventory financing, a credit line or factoring
| Question | Inventory financing | Line of credit | Factoring |
|---|---|---|---|
| Secured by | The stock | Company assets, a guarantee, or both | Your invoices |
| Money arrives | When stock is bought | When you draw | When invoices are sold |
| Fits | Stores, dealers, wholesalers | Recurring mixed costs | Businesses invoicing other businesses |
Factoring is the sale of unpaid invoices, so it suits wholesalers and suppliers who bill other businesses, not stores selling at the counter. Factoring sits outside the six options Slatemont works with. For a mix of stock and other bills, a line of credit can be simpler. The six-option comparison has the full picture.
Shelves and warehouses: Burleigh County, ND figures
Burleigh County had 380 retail trade employer establishments with 6,896 paid employees and $269.4 million in annual payroll in 2023, plus 152 wholesale establishments with 2,002 employees (County Business Patterns 2023). Retail is one of the county's three largest sectors by employer count. Another 731 retail businesses reported no paid employees (Nonemployer Statistics 2024, a separate count that should not be added to the first).
Only 31.8% of the county's retail employers had fewer than five employees, compared with 51.3% across all sectors. Retail employers here are less often very small than the average local employer, and a store with more staff usually carries more stock. The retail page covers the rest of a store's funding needs, and the Bismarck, ND page the county overview. All sectors are on the industries hub.
What partners look at
- Sales history and how quickly stock turns over
- Purchase orders and the supplier's invoices
- Inventory records, ideally from a point-of-sale or inventory system
- Existing liens on inventory or on all business assets
- Insurance coverage on the stock
Read how a request moves before you call, and have a recent inventory count ready.
Things to check in an offer
Find out what happens to unsold stock after the allowed period, whether audits carry a charge, and whether the agreement gives the partner a lien on more than the financed goods. A blanket lien on all business assets affects every later funding request.
By Slatemont Capital Group · Updated
