What is a Inventory Financing?
- Inventory financing is an arrears-based sourcing solution completely in the mode of a term loan, line of credit or 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 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 You Need to Pay in inventory financing?
- The rate of interest in Inventory Financing will vary, this is based on market conditions and risk level of your inventory which you used for inventory financing.
How Does Inventory Financing Works?
- Inventory Financing allows you to raise finance from your inventory after it is purchased. The lending Companies lends funds up to 80% of inventory’s appraised value.