MCA for Inventory Purchase UK 2025

Using MCA for Stock Purchase

MCAs are perfect for inventory funding because:

  • Fast (24-48hrs): Buy time-sensitive stock, bulk discounts
  • Flexible repayment: Repay via sales of that inventory
  • No restrictions: Use funds for any stock (vs stock finance which is secured)

Best MCA for Inventory

  • YouLend: E-commerce inventory, Shopify/Amazon sellers
  • iwoca: Retail inventory, best rates (1.08-1.25x)
  • 365 Finance: Hospitality inventory (food, beverage)

Real Example: Christmas Stock

  • • September: Get £60k MCA for Christmas inventory
  • • September-October: Stock arrives, list products
  • • November-December: Sell inventory, heavy repayment (15% of sales)
  • • January: Inventory sold, most of MCA repaid
  • • February-March: Final repayment from residual sales

Result: MCA repaid mainly from sales of the inventory it funded. Perfect cycle.

MCA vs Stock Finance for Inventory

  • Stock finance (cheaper): 5-10% APR, secured against inventory, takes 3-5 days
  • MCA (faster): 25-35% cost, unsecured, ready in 24-48hrs

Choose MCA when: Speed critical (supplier discount ending) or can't provide security.

Conclusion

MCA works excellently for inventory purchase, especially time-sensitive stock or seasonal products. Repayment naturally aligns with selling that inventory.

Inventory Funding

£10k-£200k for stock purchase. Funds in 24-48 hours.

Fund Inventory