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

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

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

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