When a business has expensive inventory that they need to keep on hand, but it is financially unrealistic to carry this inventory, then inventory financing is an excellent option to consider. This opportunity is great for small businesses that are looking for a high growth rate that they would not be able to achieve otherwise.
There are several types of inventory financing options available. One such option is a blanket inventory lien which is a type of inventory financing which uses the items purchased as collateral. This allows a business to keep the more expensive inventory on hand, such as luxury items, that it would not have been able to afford otherwise. Another type of inventory financing is floor planning in which the business’ inventory is used as collateral. With this type of lending, the borrower will usually sell the item, pay back the lender, and then keep the profit from the sold item. Field Warehousing is a type of inventory loan that can be used by a business if needed in which the business’ inventory is kept at warehouse under the control of the lending party. The inventory will be released from the warehouse in exchange for a receipt and payment of the inventory. Inventory financing is a great way for a small business to begin to get ahead by having the inventory they need especially during peak selling seasons. It also allows businesses to take advantage of liquidation, close-out, and off-season deals, or to make bulk purchases before a supplier increases their prices.
Give us a call today, and we’ll show you what we mean. We’re at 1-877-364-5227