Inventory financing is bank line of credit secured by the company’s inventory as collateral. With inventory financing, the borrower receives a loan in order to purchase inventory. The purchased inventory is then used as collateral against the loan. This is a great finance option for business owners as it provides the inventory that a business needs without tying up cash, receivables, credit cards, or bank lines. This type of financing can help to free up some of the cash you have tied up in inventory for more pressing needs. Inventory loans are perfect for businesses who enjoy a high inventory turnover rate but are short of the cash needed to replenish their supply. These loans free up much needed cash, especially for businesses who maintain high levels of inventory. Inventory financing loans are also convenient for businesses that need to keep some capital free for other interests and investments. Lenders will typically need to see that you have a proven sales history to approve you. And they will require you possess tangible inventory. Lenders will want to see that you have a proper inventory management system in place which provides accurate and timely information on your inventory size and cost. Ensure that the inventory is protected from damage and shrinkage. Most lenders will also require sales orders to verify you are actually selling. Inventory Financing is one of over 30 core funding products available to you through our business funding suite. Contact me today to access money for your business.
DYNAMAX BUSINESS CREDIT