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

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Stock funding products are sometimes conflated with “stock loans,” which is a more general term. Unlike inventory financing, which is suitable for big B2B companies, other types of inventory loans can be used by little B2C companies. Rates and terms for stock financing, of course, differ depending on the loan provider and the type of stock funding you’re applying for.

The amount of funding you receive is directly related to the worth of the inventory in question, typically 70 to 80% of the stock’s worth. Inventory financing items are often conflated with “inventory loans,” which is a more general term. Unlike inventory financing, which is suitable for big B2B organisations, other types of inventory loans can be used by small B2C businesses. Rates and terms for stock funding, of course, vary depending on the loan provider and the type of inventory funding you’re applying for. If you have a more recent business without a demonstrable sales history, or your existing stock is losing worth and not selling, it’s unlikely that an inventory financing company would be interested in lending to you.

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