Quarrymoor Financial, a small-business funding service in Kingman, Arizona, arranges inventory financing through funding partners for Mohave County, AZ retailers, parts counters, convenience stores and dealers that buy stock before they sell it. This page explains how inventory financing works, floor plan financing, collateral and a worked example. Partners make credit decisions and set rates and terms.
| Retail trade employer locations, Mohave County, AZ | 10,939 on payroll at 643 employer sites (CBP count, 2023) |
|---|---|
| Hardware, lumber and garden supply dealers, county | 1,348 on payroll at 53 employer sites (CBP count, 2023) |
| Gasoline stations with employees | 88 establishments in the county (CBP 2023) |
| Usually secured by | The inventory being bought |
Inventory financing, step by step, for a Kingman, AZ counter or store
A partner advances money to buy stock, and the stock itself secures the deal. Partners usually advance only part of the inventory's value, because goods sold at a discount or left unsold are worth less than their cost. Repayment comes from sales: fixed installments, or paydowns each time financed items sell.
Partners commonly ask what the inventory is, how quickly it turns, who supplies it, and how the business tracks it. A point-of-sale system or inventory software that shows sales by item makes the review far easier than a shoebox of invoices.
Using a loan to buy inventory: sizing it to one supplier order
A business loan to purchase inventory is sized to an order, not to the whole store. A hardware counter stocking up on irrigation parts, an auto parts room restocking brake components, a convenience store filling its coolers before a holiday weekend: each has a supplier invoice, a known margin and a rough sell-through time. That is the information a partner needs.
When a loan to buy inventory makes sense
- The goods have a track record of selling at a known margin
- The order earns a supplier discount that outweighs the financing cost
- Sales from the stock will arrive before the repayment schedule pinches
- The business can absorb stock that sells slower than planned
If the goods are new to the business or seasonal in a way the records cannot show, start smaller. Unsold inventory still has to be paid for.
Inventory financing for small business vs a line of credit
A revolving business line can also buy stock, and a small retailer can use one because it covers inventory and other short gaps from the same limit. Dedicated inventory financing tends to suit larger, specific orders where the goods themselves can secure the amount. The side-by-side comparison sets both against the other four routes.
Floor plan financing for lots and showrooms
Floor plan financing is a revolving inventory line used by dealers of big-ticket items such as vehicles, trailers or equipment. The partner pays the manufacturer or auction for each unit; the dealer pays interest while the unit sits on the lot and repays that unit's balance when it sells. Partners audit the lot periodically to confirm each financed unit is still there or has been paid off.
Mohave County, AZ had 30 automobile dealers with employees in 2023 (County Business Patterns), the kind of business where floor plan terms are part of normal operations.
An inventory financing example, with made-up numbers
A Kingman, AZ parts supplier places a $24,000 order for filters, belts and batteries. Suppose a partner advances 70% of the invoice, $16,800, and the owner covers the other $7,200. The supplier expects the stock to sell within about four months. If the parts sell at a 35% markup, the order brings in about $32,400, which has to repay the advance, the financing cost and the owner's share before any profit.
Every figure here is invented to show the arithmetic. The useful habit is to work out, before borrowing, how much of the sale price is already spoken for.
Inventory-heavy businesses in Mohave County, AZ
Retail had 643 employer establishments and 10,939 employees in Mohave County, AZ in 2023, the second-largest sector by establishments after construction (County Business Patterns 2023). Building material and garden supply dealers counted 53 establishments with 1,348 employees, and gasoline stations 88.
Two industry pages go deeper: gas station and convenience store funding covers fuel and in-store stock, and auto repair shop funding covers the parts room alongside the lifts. The full industry list has notes on grocery, furniture, clothing and online sellers, and the Kingman, AZ page has ZIP-level counts. Each step of a Quarrymoor request is explained separately.
By Quarrymoor Financial · Updated
