What is Inventory Financing?
Has your company just received a large order but you don’t have the cash flow to fund it?
Inventory Financing is short term funding which allows the purchase of stock from suppliers for manufacturing or resale, without a requirement to have the stock pre-sold.
Inventory Financing pays your suppliers up to 90% of their invoice & then extends up to 120-day credit terms to your business, giving you up to 4 months to generate enough revenue from your inventory to pay back the original invoice and also to turn a profit. It makes more cash available in your business for longer, meaning less stress for you.
Inventory Finance also means you can negotiate a better deal with suppliers for bulk orders & potentially save on shipping costs.
- Increased purchasing power
- Improved supplier relationships
- Optimised stock levels
- Grow without increasing capital or diluting equity
- Preserves either personal or business real estate security for other finance options
- Can be more cost effective than an overdraft
- Evergreen Line Of Credit
- Clear and transparent pricing, with no annual line fees, account keeping fees or audit fees
Inventory Financiers look at the following criteria to determine if they will finance a purchase order:
- Client’s business strength and performance
- Annual turnover of $1.5mill - $50mill
- Minimum of 20% gross profit
- Buy goods from suppliers for manufacturing or resale
What deal would your suppliers be willing to give your business if you doubled your normal order & paid 100% of the invoice COD?
We've found that the money a customer can save by buying more & producing more has far outweighed the cost of obtaining the finance.
