If you’re a business owner whose credit score has taken a plunge, obtaining lines of credit may prove to be a difficult task. Unfortunately, most of the time, it’s your business or personal credit that determines whether or not you get a loan or a line of credit. However, if you’re a business that has inventory, there may be another way for you to get approved for the line of credit you need. This method is called Inventory Financing, and it’s helped hundreds of business owners make it.
How It Works
Inventory Financing involves leveraging the inventory that you already have as collateral when you open a revolving line of credit. This can help you in several ways, depending on the size of your business.
Small and medium-sized retailers often find that inventory financing allows them to have a smoother cash flow cycle during slow seasons. Retailers have traditionally used this method to keep their shelves stocked, and to obtain money during times of expansion when banks rejected them.
Small to medium-sized wholesalers, on the other hand, often use Inventory Financing as a way of funding their expansion into other products. They also might use this financing method to get the money required to produce their next batch of items.
Why You’ll Love It
For many businesses that are just starting out, Inventory Financing isn’t so much a “maybe” as it is a “must.” Here’s why.
- It offers ample amounts of funding without having the red tape associated with a typical bank loan. Funding can be anywhere from $250,000 to over $6 million, depending on how much inventory you’re using as collateral.
- Up to 50% of your costs can be advanced. Getting that new batch of products in will be easier than ever before.
- Your revolving credit line can grow alongside your business. This means more flexibility for you, and more spending potential in future years.
- Just about any kind of inventory can qualify. As long as it’s not expensive jewelry, your inventory can qualify you for a line of credit.
- It can fund multiple locations. This line of credit can work just like any other line of credit in the sense that you have plenty of freedom to use the money as you see fit.
Get Your Inventory Financing Started Today!
It’s time to restock your company. It’s time to get the line of credit your business both deserves and needs.
Please also be sure to read our FAQ page concerning Inventory Financing for additional information.
Ready to get started?
Give us a call to (678) 983-4555, shoot us an email to info@thecreditexpress.org, or come over and visit us for coffee.