We offer up to 65% on Inventory
Inventory financing is when a credit line or quick loan is made to a business so it can buy products. The inventory acts as collateral for the loan if the company doesn’t sell its product and is unable to make the payments back on the loan.
Inventory financing is great for businesses that have to pay their suppliers in a shorter pan of time than it would take them to sell their products to customers. It also offers an answer to ups and downs that are seasonal in cash flow, and it can aid a business in achieving bigger volume of sales – for instance, by letting a company get more inventory to sell throughout the holiday season.
Lenders look at inventory financing, or they could anyway, as a kind of unsecured loan because if the company can’t sell the inventory, the bank may have a problem doing it too. This truth may partly explain why, in the fallout of the credit crisis in 2008, a lot of companies found it a lot harder to get inventory financing.
Why should your company consider inventory financing?
A lot of companies, big and small, are not taking advantage of the inventory financing. These things are made to offer each part of the supply and distribution chain with the chance to expand, take on new risk, improve their cash flow, and make their product more visible.
For companies that manufacture products, this can create some added value for the dealer relationship by offering a financial solution to improve the profitability and liquidity of the business. Manufacturers can also be enhanced by the improved cash flow and profit because of the customized program design by some companies that offer inventory financing. Consistent and improved cash flow is possible.
Financing solutions can additionally help a company balance their sheets by transferring some of the risk of failure, enhancing compliance control, and the upkeep of accounts receivable management to experts in inventory finance. The capital that comes in can be used in a more productive way to enlarge the sale and range of products, and to take advantage of the spikes in seasonal sales.
What are some of the benefits to the manufacturer of inventory financing?
Inventory financing lets manufacturers concentrate on their core business, it enhances the dealer network financial quality, leads to production schedules that are a lot smoother, results in enhanced cash flow, and it brings more product into the market for sale, which contributes to future sales growth.
Consider inventory financing if you’re a manufacturer that is having trouble bringing enough of their products to the market. There are experienced and capable inventory financing companies that can handle all the details and particulars that are you may be loathe to take on, when it comes to your business.
There are customized programs that can be tailored to your business that can help it grow and profit, even if you’re stuck as far as moving your business forward.
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