How Inventory Financing Works & When It’s Right (Or Wrong) For Your Small Business Funding Needs

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Stock financing products are in some cases conflated with “inventory loans,” which is a more general term. Unlike inventory funding, which is proper for big B2B companies, other types of inventory loans can be utilized by small B2C services. Rates and terms for inventory financing, of course, differ depending on the lender and the type of inventory funding you’re using for.

The quantity of financing you receive is directly related to the worth of the stock in question, normally 70 to 80% of the inventory’s worth. Stock financing products are sometimes conflated with “inventory loans,” which is a more general term. Unlike inventory financing, which is suitable for large B2B businesses, other types of stock loans can be utilized by small B2C organisations. Rates and terms for stock financing, of course, vary depending on the lender and the type of stock financing you’re applying for. If you have a newer service without a demonstrable sales history, or your present inventory is losing worth and not selling, it’s not likely that a stock financing business would be interested in providing to you.

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