A HELOC prices as the prime rate plus a margin, and floating short-turn business inventory on one can work if you respect the variable rate. The margin is set by your loan-to-value and credit score, so a strong file earns a smaller margin over prime. Because prime moves with the Fed, your rate floats over time. Two things are worth shopping: - The margin, which stays with you for the life of the line. - Any introductory teaser rate, though a teaser matters less if you plan to draw and repay quickly rather than carry a balance for years. For inventory that turns in a few months, the mechanics fit well: you pay interest only on what you draw, and only for the days you owe it. Just budget for the rate moving against you, and have a real repayment plan for when the inventory sells. On where to get one: banks and credit unions usually offer the best HELOC terms, because a HELOC is a lot of origination work for a small loan and portfolio lenders are set up for it. Many come with little or no closing cost. This is general information, not a recommendation on your specific business financing.