Small businesses or even retails, when they require cash, going to a traditional banking institution is not a feasible solution always. There might be higher interest rates or collateral requirements that they cannot provide. Hence, leveraging the inventory in such cases can be a very viable solution. This form of funding system helps you to buy even more inventory by using the items that are already present with you in terms of collateral. These loans are very convenient in cases when you need to unlock the capital that is already stuck in your inventory. They also help you if you face trouble in meeting your customer’s expectations. For understanding this more, keep following down below:
What is this financing?
This is a very short term of small business or retail financing that only has one purpose: to ensure you buy inventory for your business expansion. This financing helps you cover:
- Short-term cash shortages
- The stockpile of inventory for busier seasons
- Product line expansions
- Unlock the inventory tied-up capitals
- Security of upfront cash
What are the benefits?
Among the many benefits that inventory financing hold, we are listing the most important ones to help you get better clarity:
- Using the already present inventory as your collateral for this financing method would mean that you do not need to involve any more business or personal assets in the security of the loan.
- If the loan is approved, which generally does not take a lot of time; you will get easy loan funding within a very short period.
- You can also use less-than-stellar personal credits for approval of the loan and they are not a deal-breaker today.
- The most important part is that any new or old, big or small business is eligible to get this loan. Operation of a year or six months is what is going to take it to qualify for the loan.
- You can move forward pretty fast to acquire your necessary inventory as soon as you get along lucrative discounts or bargains.
- This loan is going to exclusively help you stock ahead of the busier season and not miss out on important sales.
- Inventory has a lot of cash tied up to it and you can easily free that up.
Accord Financial retail inventory financing is going to help you get your loan at the earliest with you not having to drain your valuable time and efforts.
