Inventory finance is especially useful to businesses where stock or goods are required to be paid to suppliers upfront or on short credit terms. It provides businesses with a short term loan is to purchase goods or products to resell, and reduces the pressure on the cash flow of having to pay up front. The stock/goods are considered the inventory, and are used as collateral for the loan.
• Businesses who need to pay suppliers prior to receiving money from customers can have their cash flow issues resolved
• Seasonal fluctuations in cash flows can be balanced
• Achieve a higher sales volume by increasing inventory prior to peak season