Inventory financing is a type of asset-based loan in which the inventory you’re purchasing with the loan is used as collateral to secure the loan. Depending on the arrangement, the lender may also require you to put up your accounts receivable as collateral. The amount of financing you receive is directly related to the value of the inventory in question, usually 70 to 80% of the inventory’s value. Read our article for the full story on inventory financing, including rates and terms.
Inventory Management Blog Posts
Many businesses may need to borrow money from time to time in order to purchase inventory. But what are the best loan options for small businesses that need to buy inventory?