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 “stock loans,” which is a more general term. Unlike stock funding, which is proper for big B2B businesses, other types of inventory loans can be utilized by small B2C companies. Rates and terms for inventory funding, of course, vary depending on the loan provider and the type of inventory funding you’re using for.

The amount of funding you receive is straight related to the worth of the inventory in question, typically 70 to 80% of the stock’s worth. Stock financing items are often conflated with “stock loans,” which is a more basic term. Unlike inventory funding, which is proper for big B2B services, other types of stock loans can be used by small B2C services. Rates and terms for inventory funding, of course, vary depending on the lending institution and the type of inventory funding you’re using for. If you have a newer service without a demonstrable sales history, or your current inventory is losing worth and not selling, it’s not likely that a stock funding business would be interested in lending to you.

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