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Beauty and cosmetic businesses often seek financing to support their growth and operations, whether it’s to expand product lines, invest in marketing, or purchase inventory. Knowing what financing options are available for your business and what to expect when applying, can put you at an advantage. When exploring the various financing options, it’s important to know the benefits each one comes with and consider which is best suited for your business. As your beauty and cosmetic product(s) grow in popularity, cash flow can become an issue and inventory financing can be the solution. 

At Kickfurther, we understand the stress that comes with managing inventory and traditional financing for beauty and cosmetic businesses. Offering inventory on consignment, Kickfurther can fund up to 100% of your inventory with flexible repayment terms that put you in control. Our community of entrepreneurs is truly here to help small businesses grow, but don’t take our word for it. . . get inspired by our success stories. 

Here are the basics you should know when exploring cosmetics and beauty inventory financing.

Common reasons beauty and cosmetic businesses seek financing 

While there are many reasons why beauty and cosmetic businesses may seek financing, here are some common reasons. Before pursuing financing, analyze spending and business activity to ensure that a cash flow deficit is not the result of poor management. 

Growth and development

Many beauty and cosmetic businesses may need financing to fund their growth and development plans. This could include expanding their product lines, entering new markets, or investing in new technology to improve their operations.

Inventory expansion

Beauty and cosmetic businesses often need to maintain a large inventory of products to meet demand. Financing can help businesses increase their inventory levels and keep up with customer orders. Have a good fulfillment partner ready to handle the increased inventory levels and sales demand.


Beauty and cosmetic businesses often need to invest in marketing and advertising to build brand awareness and attract new customers. Financing can help businesses fund these efforts, which can be especially important in a highly competitive market.

Hiring staff

As businesses grow, they may need to hire additional staff to manage operations and meet customer demand. Financing can help businesses cover the costs of hiring and training new employees.

Equipment and technology

Beauty and cosmetic businesses may need to invest in new equipment or technology to improve their operations, such as new packaging machines, production equipment, or software systems. Financing can help businesses cover the costs of these investments. 

Research and development

Beauty and cosmetic businesses can use funding for research and development to procure elite products that will set them apart. 

Working capital

Finally, beauty and cosmetic businesses may need financing to cover their day-to-day operating expenses, such as rent, utilities, and payroll. This type of financing is often referred to as working capital financing and can help businesses maintain their cash flow and avoid cash flow issues. Other types of financing such as inventory financing can also be used to free up working capital.  

Funding options available to beauty/cosmetics businesses

Beauty and cosmetic businesses often require financing to support their growth, development, and operations. While there are several options available, each will come with its own set of hurdles to overcome. Additionally, funding will need to make financial sense. Whenever possible, maintain equity in your business and find funding options that allow you to remain profitable. Below is a brief summary of various funding options that you may qualify for. 

Traditional bank loan

A traditional bank loan is a common financing option for businesses. Banks can provide a lump sum of money that must be repaid over time with interest. Beauty and cosmetic businesses can use the loan to fund growth, inventory, marketing, or other expenses. The downside is usually the cost and strict requirements. 

Line of credit

A line of credit is a flexible financing option that provides businesses with access to a pool of funds that they can draw from as needed. The business only pays interest on the funds they use. This can be a useful option for businesses with fluctuating cash flow needs. Similar to a credit card, but secured by collateral (such as the business owners home) in most cases. 


Crowdfunding allows businesses to raise funds from a large number of individuals, often through an online platform. Beauty and cosmetic businesses can offer rewards or equity in exchange for contributions. This can be a useful option for businesses that want to build a community of supporters and fans. We advise business owners to be very careful with crowdfunding though. 

Venture capital

Venture capital is a type of financing where investors provide funds to early-stage businesses in exchange for equity. Beauty and cosmetic businesses with high growth potential and innovative products may be attractive to venture capitalists. Again, proceed with caution as the venture capitalists are in search of maximizing profits. 

Angel investors

Angel investors are individuals who provide financing to early-stage businesses in exchange for equity. Beauty/cosmetics businesses can use angel investment to fund growth, marketing, and product development.

Inventory financing

Inventory financing allows businesses to use their inventory as collateral to obtain a loan. This can be a useful option for beauty and cosmetic businesses that need to maintain a large inventory to meet demand. Even though inventory financing is secured by inventory, it can still be costly and challenging to qualify for, that is unless you turn to Kickfurther for a better way to secure inventory funding. 


Grants are non-repayable funds provided by government agencies, non-profits, or corporations to support specific activities or projects.

Accelerators and incubators

These are programs that provide mentorship, resources, and funding to startups in exchange for equity. These options can be useful for businesses with innovative products or technologies. 

Overall, the wide range of funding options available to beauty and cosmetic businesses means that there is likely to be a financing solution that can meet the unique needs of your business. Do the necessary due diligence and make smart business decisions. 

How inventory financing can benefit your beauty business

Inventory financing can benefit beauty businesses in several ways, all creating more opportunities for beauty businesses. Here is a general list of some benefits, but we encourage you to consider benefits as they relate to your business. 

Increased inventory levels

Beauty businesses require a large inventory of products to meet demand. Inventory financing can help businesses increase their inventory levels, which can result in increased sales and revenue.

Improved cash flow

Financing inventory can help businesses improve their cash flow by allowing them to purchase inventory without depleting their cash reserves. This can help businesses maintain their operations and pay their bills on time.


Inventory financing is a flexible financing option that allows businesses to borrow funds as needed. This can be especially useful for businesses with fluctuating inventory needs or those that experience seasonal fluctuations in demand.

Better purchasing power

Inventory financing can help businesses negotiate better pricing and terms with suppliers since they can order more frequently and in larger quantities. This can result in cost savings and improved profit margins.

Growth opportunities

By financing their inventory, beauty businesses can free up capital to invest in other areas of their business, such as marketing, product development, or hiring additional staff. This can help businesses grow and expand their operations.

Inventory financing can be a useful tool for beauty businesses that require a large inventory of products to meet customer demand. It can provide businesses with the flexibility and resources they need to maintain their operations and pursue growth opportunities.

How to apply for inventory financing as a beauty/cosmetics business owner

Specific steps to apply for inventory financing can vary depending on the type of financing and source. In general, consider the following steps to apply for inventory financing as a beauty/cosmetics business owner.

  1. Determine your inventory needs: Before applying for financing, you should determine how much inventory you need to purchase and how much it will cost. This will help you determine how much financing you need to apply for. You want to stock the right amount of inventory at all times. If you are unclear of inventory flow, consider investing in inventory management first. 
  2. Research sources: There are several lenders and sources that offer inventory financing to businesses. Connect with other entrepreneurs and consider Kickfurther when considering options for inventory funding. 
  3. Gather financial documents: Typically, you’ll need to provide some justification and proof to qualify for funding. Familiarize yourself with the financial state of your business and gather documents such as balance sheets, income statements, and tax returns to evaluate your business’s financial health and creditworthiness. At Kickfurther, you can get an idea of what you qualify for with a little bit of basic and financial information. 
  4. Provide necessary information: When you’re ready, take the next step with the lender or source of funding. At Kickfurther, you’ll create a business profile.
  5. Provide collateral: Inventory financing typically requires collateral, such as inventory or accounts receivable, to secure the loan. Be prepared to provide information about your collateral when applying for financing. With Kickfurther, your inventory is the collateral. We can even pay the suppliers directly to make the flow even smoother.  
  6. Wait for approval: Once you’ve completed the steps required, sit back and wait for the lender or source to release funds or guide you through next steps. If denied, try to determine why so you can learn and try again. 

How Kickfurther can help

Kickfurther is a funding platform that allows you to take control of your business by helping to fund  your largest expense – inventory! We can be a valuable tool for those seeking cosmetics and beauty inventory financing, helping your business maintain healthy levels of cash flow. With our partnership you can continue doing what you do best with fewer challenges.By leveraging our unique funding platform, we can fund your entire order(s) each time you need more inventory, so you can put your capital on hand to work growing your business without adding debt or giving up equity. 

Closing thoughts

There are various reasons why beauty and cosmetic businesses seek financing, from supporting growth to developing new technology. With so many financing options available out there, we encourage you to explore your options and find the one best suited for your business needs. 

Interested in getting funded at Kickfurther? Here are 3 easy steps to get started:

#1. Create a free business account

#2. Complete the online application 

#3. Review a potential deal with one of our account reps & get funded in minutes

AUTHOR: Kaylyn Perry is the Content and Social Manager at Kickfurther with a passion for storytelling and small business.