Use Cases
Inventory Financing & Loans
Many businesses rely on inventory financing to order products before they sell these products. This allows them to order and get the products in hand to ensure they have enough inventory to sell their customers.
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What is Inventory Financing?
Inventory financing is a form of short-term lending using a loan or revolving credit line. Because the inventory itself can act as collateral, companies can buy the products they need to sell at a later time. This gives them more flexibility in buying seasonal products they know will sell later, but they need to purchase it from the supplier before then.
How Inventory Financing Works
Businesses get inventory loans to buy products that they can put in the warehouse before it goes out to retailers or sells from an online store. A type of asset based financing, these loans help smaller companies especially when they need to purchase items to sell or supplies to make items to sell.
Use Cases
How To Use Inventory Financing
Getting an inventory loan can help a business with cash flow issues that arise when they need to make big inventory purchases from suppliers. There are plenty of ways to use business inventory loans.
Expand Product Lines
Want to add new items to your stock? Inventory loans help you expand product lines so you can offer new options to your customers.
Meet Seasonal Demands
Having products on the shelves is critical during certain seasons. Inventory loans help you get the right products in stock before the season arrives.
Reduce Costs From Other Areas of Your Business
It's important to keep cash flowing in the right directions so your business can run smoothly. By using inventory business loans you can keep payroll and other operations on track.
Why Apply for an Inventory Loan?
Meet Customers' Needs
Businesses need to have product on hand that meets their customers' needs. Small business inventory loans give companies the cash flow they need.
Increase Sales Channels
Selling products online, in store, and through other sales channels ensures that the inventory you buy won't go to waste. Inventory loans help you increase your sales channels.
Invest in an Inventory Management System
Managing inventory takes a lot of time and effort. The right inventory management system simplifies this process and saves you hours of time.
Minimum Eligibility Requirements
To qualify for a business inventory loan, companies need to meet certain criteria. Here are the minimum requirements to get an inventory loan.
Minimum Requirements
| Time in Business | Minimum 6 Months |
|---|---|
| Business Annual Growth Revenue | $240K+ Annual Revenue |
| Business Checking Account | Yes |
| US Citizen/Based Company | Yes |
| FICO Score | 570+ |
| Other Financing | None |
| Bankruptcies | None open |
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Grow Your Business
Meet Customers' Demands
Increase Sales
Improve Management of Inventory
Buy New Inventory
Pay for Necessary Tools
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Inventory Financing and Loans FAQ
When Must Equipment and Inventory Loans Be Paid Back?
Each loan type has different terms. Typically, they must be paid back within 6 to 12 months because they are considered a short-term financing product.
What Are The Types of Inventory Financing?
Inventory financing lenders offer a variety of loan products. Lines of credit, merchant cash advances, term loans, and traditional financing are the main types of inventory financing available.
Which Type of Financing is Most Appropriate to Finance Purchase of Inventories?
Most businesses that need inventory financing choose a short-term loan product that uses the inventory as collateral. These are the best types of financing to buy inventories.
Is an Inventory Loan Right For My Business?
If you need to resupply your inventory for an upcoming season before you have the revenue to pay in cash or you want to add products to your selection, then an inventory loan might be the best option. With a few different loan options, you can choose what fits your business the best.
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