Why Is Bulk Purchasing Important? Capture Inventory Discounts Before They Disappear
A supplier offering deep discounts rarely leaves the window open for long. Here is how to tell if the deal is worth taking, and how to fund it if the cash is not sitting in the account yet.
Apply directly with us. More reasons to get funded
What is opportunistic bulk purchasing?
Bulk purchasing lets a business lock in a lower per-unit cost and secure inventory before a time-sensitive supplier discount, closeout or limited supply window disappears. Opportunistic purchasing is when that kind of deal shows up on short notice, such as a supplier clearing a warehouse at a deep discount.
The catch is that the cash needed to buy in bulk is often more than what is in the account that week. Funding can provide the upfront capital so you can say yes, then sell through the inventory at the better margin.
- Lock in a lower cost per unit
- Get ahead of seasonal demand
- Protect against price increases
- Free up shelf space for popular items later
When a bulk deal is worth funding
Supplier closeouts
A one-time discount to clear stock can turn into a much better margin.
Seasonal stock-ups
Buy ahead of a holiday or peak season so you are not reordering at higher prices.
Volume pricing tiers
Move up a pricing tier by ordering more at once.
Pre-price-increase buying
Buy before an announced increase takes effect.
Limited supply items
Secure scarce inventory before a competitor does.
New product lines
Order enough to launch a new line with a healthy margin.
Is this bulk deal worth it?
Nothing is submitted here. It is just a fast way to see whether this fits your situation.
Weigh your options
- Make sure the savings are larger than the cost of the funding, and that the inventory will actually sell.
- Our payments are fixed daily or weekly, so plan for them while the stock sells through.
- Because funding usually arrives 24 to 48 hours from application, check the supplier deadline before you apply.
- See how the numbers work on Transparent Terms.
Is this bulk deal worth it?
Tick what is true about the deal in front of you.
Quick savings estimate
Enter the numbers from your supplier deal.
Spot the deal
Check the savings against your normal cost and how quickly the inventory will turn over.
Apply fast
A soft pull only, and underwriting usually takes 1 to 5 hours on a complete file.
Buy in bulk
Funding usually arrives 24 to 48 hours from application. Confirm the supplier deadline first.
Your questions, answered
Why is bulk purchasing important?
It lets a business lock in a lower per-unit cost and secure inventory before a time-sensitive discount or limited supply window closes.
Is it better to buy in bulk or order smaller quantities?
It depends on how fast the inventory sells, your storage space and the size of the discount. Bulk makes sense when the savings clearly exceed the cost of funding and holding the stock.
Do I need good credit?
We use a soft credit pull only, so applying does not add a hard inquiry, and we approve down to a 500 credit score. Approval looks mainly at your revenue and cash flow.
How fast can I get funded?
Underwriting usually takes 1 to 5 hours on a complete file, and funding usually arrives 24 to 48 hours from application. Funding can arrive in as little as 24 hours.
How does repayment work?
Our merchant cash advance has a fixed daily or weekly payment. Terms are up to 10 months, and sometimes up to 15 months. Your funding specialist explains the full cost and payment schedule in writing before you decide.
What does it cost?
Cost is expressed as a factor rate and fees rather than an interest rate. Direct Fund factor rates range from 1.309 to 1.499, with standard fees of 5% to 10%. Because the cost is set at funding, you know the full repayment amount up front. See Transparent Terms for worked examples.
Is this a loan?
No. Our funding is a merchant cash advance, which is not a loan. It is an advance based on your business's revenue.
What do I need to qualify?
At least 1 year in business. Our Direct Fund program looks for about $50,000 per month in revenue, and our Marketplace program looks for about $5,000 per month. Funding amounts range from $10,000 to $5,000,000.
Related guides and pages
Ready to get started?
Apply directly with us, and a funding specialist will guide you from application to funding.
Funding amounts, terms and eligibility depend on your business and are subject to approval. Funding is provided as a merchant cash advance, which is not a loan, through our Direct Fund and Marketplace programs. Images are illustrative.
