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 receive is directly related to the worth of the inventory in question, typically 70 to 80% of the inventory’s value. Inventory funding items are in some cases conflated with “inventory loans,” which is a more basic term. Unlike inventory financing, which is appropriate for large B2B businesses, other types of inventory loans can be used by little B2C businesses. Rates and terms for stock financing, of course, vary depending on the lending institution and the type of stock funding you’re using for. If you have a more recent organisation without a verifiable sales history, or your existing stock is losing worth and not selling, it’s not likely that an inventory funding company would be interested in providing to you.

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