Inventory

Financing

Inventory Financing

Inventory financing is credit obtained by businesses to pay upfront for products that will not be sold immediately. The loan is collateralized by the inventory it is used to purchase. Inventory financing is most often used by smaller privately-owned businesses that don't have access to collateral or other options.

Inventory financing is useful for retail businesses that must pay their suppliers for stock that will be warehoused for some period of time before being sold to customers. It is particularly critical as a way to smooth out the financial effects of seasonal fluctuations in cash flows. It can help a business achieve higher sales volumes by allowing it to acquire extra inventory for use on demand.

Benefits
When it comes to making any financial decision, particularly when it involves taking out a loan, it’s best to weigh the pros and cons. Inventory financing comes with both. Here are the benefits of inventory financing for small businesses:

• Allows you to meet customer demand:
Seasons when your products are in high demand can mean that you may run critically low on inventory or worst, have to explain to customers that you’re out of stock. As a small business trying to build your reputation, the last thing you want to do is disappoint potential clients.

• No need for personal collateral:
Other loans will require you to pledge personal assets as collateral. Knowing that there is always a risk of losing your home, car, and other assets under your name can make any business owner nervous. And you will feel this way until that last loan payment is completed! With inventory financing, the inventory you purchase is considered the collateral. In a worst case scenario where your business fails, you won’t lose your house, but you will give up all the inventory that was purchased using the loan.


Eligibility
Your business must be registered (either as a Sole Proprietor or Limited Liability Company)
You must be an existing customer of this platform to qualifty to apply.


How to apply
Kindly complete an online form here.