Financing services
Inventory Loan Program
Capital Solutions for Your Completed Inventory
How Inventory Loans Work
At TM Lending, we provide flexible financing solutions tailored to developers and investors managing real estate inventory. The Inventory Loan Program offers short or long-term capital secured against completed or near-complete residential units — helping you unlock liquidity, manage cash flow, and maximize profitability while waiting for optimal market conditions.
An inventory loan—also known as an inventory mortgage—is a short or long-term financing solution secured for completed, vacant, or unsold units. It can also be structured against a portfolio of properties that are built but not yet sold or leased.
These loans are designed to help developers and investors bridge the gap between project completion and property disposition — offering financial flexibility during critical holding periods. Instead of juggling a stack of separate mortgages, an Inventory Loan can be set up as one facility covering multiple units. That means a single approval, one set of covenants, and coordinated maturities—reducing admin, legal, and carrying costs. We can cross-collateralize the portfolio for better leverage, then release individual units on sale through pre-agreed partial discharges. Access to capital, and a financing structure that moves at the pace of your sales cycle.
Residential
Subdivisions
Commercial
Buildings
Mixed Use
Condominiums
Industrial
Units
Condominium
Conversions
Why Choose TM Lending for Your Inventory Loan?
TM Lending specializes in providing developers and investors with tailored inventory financing solutions across Ontario. Our team understands the challenges of holding completed or unsold units, offering flexible structures that improve cash flow and maximize profitability. With competitive rates, personalized service, and deep market expertise, TM Lending ensures your financing moves as efficiently as your projects.
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Why Use An Inventory Loan
The key advantages of using an Inventory Loan:
Market Holding Power
Retain unsold inventory during slower market cycles until conditions improve for sales or leasing.
Pay Off Construction Debt
Use the loan to retire the primary construction mortgage and free up credit for future developments.
Improve Cash Flow
Access capital tied up in completed projects while waiting for sales proceeds.
Investor Efficiency
Consolidate financing for multiple units under one facility rather than managing numerous individual mortgages.
FAQ
No, inventory loans are typically short-term solutions designed to bridge cash flow gaps for specific needs like seasonal stock building or bulk purchases, not for ongoing operational capital.
Inventory financing is specifically tied to the purchase and value of inventory, with the inventory itself serving as the primary collateral, unlike some traditional loans that might require other business or personal assets.
Typically, retail products, wholesale stock, or raw materials with a measurable and consistent turnover value can qualify. The inventory must be non-perishable and hold its value over the loan term.
Generally, the funds from an inventory loan must be used specifically for purchasing inventory or raw materials, not for other expenses like payroll or marketing, as this would violate the loan agreement.