What is an Inventory Financing?
- Inventory Financing is an arrears-based sourcing solution which is completely in the mode of a term loan, a line of credit or a short-term loan that is made to a company for the abrupt purpose of buying products for sale. It works alike equipment financing. The inventory itself delivers as collateral on the loan.
What is Inventory Financing and Collateral?
- Most business lenders require borrowers to offer some form of collateral or personal guarantee for a loan. That’s why the power to use the inventory itself as collateral through inventory financing is such a major perk for borrowers.
How much interest rate I need to pay in Inventory Financing?
- The rate of interest in Inventory Financing varies. This is based on market conditions and risk level of inventory which you will use for your inventory financing.
How does Inventory Financing works?
- Inventory Financing allows you to raise finance from your inventory after its purchase. The lending Companies lends funds up to 80% of inventory’s appraised value.