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Five things to know about Inventory Financing

· Financing tips,Furniture Industry,Small business,Startup,Retail
Five things to know about inventory financing, Capital Concierges,

Five things to know about inventory financing

 

Introduction-

In a nutshell, Inventory financing lets business owners tap cash from their existing physical assets by allowing the use of existing inventory in the form of credit. This allows the business owners to own more capital, thereby expanding their business and increasing productivity at the same time.

Inventory financing lets the business unlock the cash which is tied up with the physical assets by allowing to use the inventory as a form of credit. This can be used in conjunction with invoice factoring or an asset-based loan.

 

More about inventory financing-

These are the five things one must know about inventory financing before getting acquainted with it-

  1. It helps leverage assets owned by you-Businesses having good turnovers and strong sales are able to leverage the value of their assets with the help of inventory financing. It helps add value to the businesses’ inventories and also attract distributors, wholesalers, and manufacturers.

 

  1. Inventory financing and Invoice factoring work together, hand in hand- Invoice factoring is defined as a financial transaction wherein a particular business sells its accounts receivable to a company in order to free up their cash reserves. Inventory financing adds to the physical inventory in addition to the accounts receivable which are marked as collateral.

 

 

  1. A cash boost helps any company in any situation-An influx of cash helps in any given situation helps the company by giving a significant boost. No matter the shortage of cash, inventory financing will help the company land on its feet every time some trouble pops up. The credit line up can be used in cases when-
    • Seasonal business needs restocking but not enough cash is generated by present sales to cover expenses
    • A large unexpected order for goods is looming above, but there is little or no cash to cover it
    • Capital is needed for the day-to-day operations but most of that is tied up in inventory

 

  1. Consistent turnover is very important- To be able to secure good inventory financing, a consistent turnover is extremely important for the company/business. Inventory Financing companies have to be sure that the inventory of the company who wishes to indulge inventory financing is valuable for serving as a source of capital and also as a valuable collateral.

 

 

  1. Maintaining accurate records-Accurate records are very important as they let the others know accurately about the type of position the company is currently in and the inventory status as well. A good inventory management system helps a lot in this regard as it allows for the easy tracking of products as they move through various parts of the system.

Introduction-

In a nutshell, Inventory financing lets business owners tap cash from their existing physical assets by allowing the use of existing inventory in the form of credit. This allows the business owners to own more capital, thereby expanding their business and increasing productivity at the same time.

Inventory financing lets the business unlock the cash which is tied up with the physical assets by allowing to use the inventory as a form of credit. This can be used in conjunction with invoice factoring or an asset-based loan.

More about inventory financing-

These are the five things one must know about inventory financing before getting acquainted with it-

  1. It helps leverage assets owned by you-Businesses having good turnovers and strong sales are able to leverage the value of their assets with the help of inventory financing. It helps add value to the businesses’ inventories and also attract distributors, wholesalers, and manufacturers.
  1. Inventory financing and Invoice factoring work together, hand in hand- Invoice factoring is defined as a financial transaction wherein a particular business sells its accounts receivable to a company in order to free up their cash reserves. Inventory financing adds to the physical inventory in addition to the accounts receivable which are marked as collateral.
  1. A cash boost helps any company in any situation-An influx of cash helps in any given situation helps the company by giving a significant boost. No matter the shortage of cash, inventory financing will help the company land on its feet every time some trouble pops up. The credit line up can be used in cases when-
    • Seasonal business needs restocking but not enough cash is generated by present sales to cover expenses
    • A large unexpected order for goods is looming above, but there is little or no cash to cover it
    • Capital is needed for the day-to-day operations but most of that is tied up in inventory
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