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

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The amount of funding you get is directly associated to the worth of the inventory in question, typically 70 to 80% of the inventory’s value. Stock funding items are sometimes conflated with “inventory loans,” which is a more general term. Unlike stock funding, which is suitable for large B2B businesses, other types of stock loans can be utilized by small B2C companies. Rates and terms for inventory funding, of course, differ depending on the loan provider and the type of inventory funding you’re using for. If you have a more recent organisation without a verifiable sales history, or your present stock is losing value and not selling, it’s unlikely that a stock financing company would be interested in lending to you.

Inventory funding products are sometimes conflated with “inventory loans,” which is a more general term. Unlike stock funding, which is proper for big B2B organisations, other types of stock loans can be utilized by small B2C organisations. Rates and terms for stock financing, of course, vary depending on the lending institution and the type of stock financing you’re applying for.

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