Inventory financing is an asset-backed, revolving line of credit or short-term loan made to a company so it can purchase products for sale. Those products, or inventory, serve as collateral for the loan if the business does not sell its products and cannot repay the loan. Inventory financing is especially useful for businesses that must pay their suppliers in a shorter period than it takes them to sell their inventory to customers.
Inventory financing is a popular financing option for small to medium-sized retailers or wholesalers. Many small to medium-sized businesses lack the financial history or assets to secure more institutionally sized financing options.
Consulting with a inventory business loan expert is the first step for your business to obtain funding. Call First Down Funding and let us know your financing needs.
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