Inventory financing is a bank line of credit secured by your company’s inventory. This type of financing can help to free up some of the cash your business may have tied up in inventory for more pressing needs. There are numerous scenarios that would make this financing instrument a viable option for your business. For instance, if you enjoy a high inventory turnover rate but are short of the cash needed to replenish your supply, or if your business has a warehouse of goods ready to ship, but you are short of cash to buy supplies for the next production cycle. Also, inventory financing can be great for your business if you maintain high levels of inventory which ties up a high percentage of your business cash. Traditional banks do not offer this type of financing.
A 15 year old electronic wholesale goods business located in NJ consistently experienced a cash shortage before shipping their warehouse full of goods. At the same time, they needed capital to start the next production cycle. This operational capital constraint posed a constant strain on their business operations. Inventory financing was the perfect scenario to solve the problem since so much of their assets are tied up in their inventory. Now the business is able to leverage their inventory to bridge the gap between production cycles.
|Amount of loan:||$10,000,000|
|Total time to close:||1 Month|