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Inventory Financing

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Businesses built around selling products know the struggle of maintaining decent cash flow through and through. The availability of funds to meet these short-term financial crises can make or break a company, especially a small or new one. Inventory financing is an excellent way for companies to meet the demands of suppliers while helping their businesses grow. What Is Inventory Financing? Inventory financing is a debt-based mode of advance that lending institutions offer against the…

Fluctuations in cash flow are customary of any business organisation, which makes them seek external funding from time to time. Such funds are way more restricted for start-ups, which also lack adequate assets, credibility, and turnover to secure a regular business loan in its early stages. Start-ups can opt for inventory financing instead to scale up operations and accumulate significant profits. Given its short-term nature and upfront loan availability, inventory financing can be an ingenious…

Maintenance of stocks, or inventory, is the core requirement of any business that indulges in the trade. However, a lean sales period can leave a considerable slice of an enterprise’s investment locked up in its inventory. A business faced with a shortage of funds fails to honour its short-term payment obligations, which can hamper its credibility. And, in such a circumstance, inventory financing can be extremely resourceful. What Is Inventory Financing, And How Does It…

One of the challenges that small businesses encounter and often struggle to overcome is inadequate inventory during peak seasons. Even if a firm’s sales volume is not seasonal, a shortage in stock levels can result in missed opportunities.  In such circumstances, a business can choose inventory loans as an escape route. This type of inventory financing allows a firm to purchase stock by collateralising it against a loan. However, before resorting to inventory loans, business…