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Inventory FinancingWhy More Companies Than Ever Are Looking at Inventory Financing… and Getting Up to 500K in Credit Lines for Business

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(Flexible, Reliable Solution for Business Funding)

Inventory Financing

With Inventory Financing, you can get approval for a line with low rates, regardless of personal credit quality. You won’t need financials or good credit. To qualify, your business must have existing inventory now that is valued over $500,000. It might be supplies, retail merchandise, materials used to produce your product, or other non-obsolete inventory. The lender will review your existing inventory and the quality of your inventory management system. If you have inventory that qualifies you can get approval quickly with a review of your inventory records.

You can even get approval for a credit line with low rates, even with severely challenged personal credit and low credit scores, and even with recent derogatory items and major collections on your credit report.

After lenders review your inventory summaries you can get your initial approval and funding in 2 weeks or less. You can get a working capital credit line to use for whatever purposes you need.

Fast Facts on Credit Suite Inventory Financing

ApprovalAmount

Approval Amount
UPTO $500,000

CreditQuality

Bad Credit
ACCEPTED

ApprovalAmount

Collateral Needed
Inventory

CreditQuality

Documents
Business financials including demonstrating you have a good quality inventory management system

Why You Need Inventory Financing

  • 24-hour pre-approval
  • Secure financing of up to 85% of inventory liquidation value
  • Easy inventory review for approval
  • No application fees
  • Very bad credit accepted
  • Application to funding in 2 weeks or less
  • No revenue requirements
  • Low rate financing
  • Credit line amounts range from $250,000 – $500,000

How Does It Work?

4-Step Process

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Step 

Step 1

Complete the form for a one on one consultation with a representative
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Step 

Step 2

Submit your application. Soft pull on your credit
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business-credit-time

Step 

Step 3

Get pre-qualified in as little as 24 hours
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Step 

Step 4

Meet directly with Inventory Financing Advisors and get access to your financing
If you are NOT approved, you’ll find out why, as well as what you can do to get approved.

How to Qualify for Funding With Inventory Financing

Below are the requirements to qualify for Inventory Financing:

Inventory as collateral
Inventory must be valued at $500,000 or more
Must have a good quality inventory management system
Funding in 2 weeks or less after initial approval

Fundability Factors Needed for Qualification

Business Financials
Foundation

See what you qualify for today

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Terms That Can’t Be Beat

This program offers low rates, regardless of personal credit quality. Secure a credit line for up to 85% of your current inventory liquidation value if your inventory is worth $500,000 or higher.
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How Much Does It Cost?

If you don't get approved – you don't pay.
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Several Finance Options All In One Place

Wondering if Inventory Financing is right for you? Find out now, and if it isn't the best fit, we have multiple other options with easier qualifications and better terms. Find out how much you qualify for Inventory Financing today with our Business Finance Blueprint Qualifier and let our team help you find the best option for your situation.
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FAQ

What is Inventory  Financing?

 Inventory Financing is: 

“… a revolving line of credit or a short-term loan that is acquired by a company so it can purchase products for sale later. The products serve as the collateral for the loan.”

At their core, these are secured loans.

Why Can Inventory Financing Sometimes be Hard to Get?

Inventory financing can sometimes be hard to get because inventory depreciates.  As security, it’s basically on the clock.  If it depreciates to the point of not being worth the amount of the loan, it is worthless as security.  There is also the idea that it may be a fad that is going to quickly go out of style, also not selling. 

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How Do Recessions Affect the Availability of Inventory Financing?

After the hard economic downturn of 2008, lenders are much stingier with this type of small business financing.  During that time, it was painfully evident that, if a loan was secured by non-staple items, there could be trouble. 

 
Non-necessities do not sell well in a recession.  If you can’t sell, the bank cannot either. That means the security is pretty much worthless.

What are Some Ways to Use Inventory Loans?

There are some things you can purchase with small business inventory loans that may surprise you.  For example: 

  • If you run a dining establishment, you can use inventory loans to buy flatware and linens in addition to food supplies. 

  • If you run a salon, you can use this type of financing for towels and supplies as well as items to sell. 

  • A clothing store may use the funds for shoes, accessories, and other items. 

 The point is, you can use this financing to purchase items that are not specifically inventory in terms of things that you sell to the public.  You can also use this financing to purchase supplies for any services you may offer

what are the Types of Inventory Financing?

There are two main types of inventory financing. They are an inventory loan and an inventory line of credit.

Both types of inventory financing are secured by leveraging your inventory as collateral. Still, these two loan types mean different things for the future of your business financing.

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What is an Inventory Loan?

This is a loan based on the value of your inventory. Like a regular small business loan, an inventory loan is for a set amount to be paid back in monthly payments over a fixed repayment term or in a lump sum following the sale of inventory.

You will be responsible for paying back the full loan amount. Once the loan is paid off, you will have to take out another small business inventory loan if you need more financing.

What is an Inventory Line of Credit?

Funds from a loan can only be used once. But an inventory line of credit can provide you with extra money on an ongoing, as-needed basis. A business line of credit can help business owners handle any unforeseeable expenses that may come up.

What are the Pros of Inventory Financing?

Since these loans are secured by the inventory, lenders can put less of an emphasis on business credit history or credit score and other indicators of creditworthiness.

This can make inventory financing easier to obtain for businesses that cannot get funding through a regular business loan, such as a working capital loan. This method of financing can also be faster to apply for and easier to get than a business loan.

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What are the Cons of Inventory Financing?

Inventory financing can be more expensive in the long run versus cash inventory purchases due to interest. This is the case even if the interest rate is low. Although inventory financing can be secured by the inventory itself, in some situations the lender may ask for an additional form of collateral.

A lender may want to come out and see your facility in person to make sure the financed inventory is being taken care of so it won’t be damaged or depreciate in value before sale. Often, such, onsite visits involve an appraisal fee you will be responsible for paying.

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How Can a Business Prove to a Lender that it’s Worthwhile to Provide Inventory Financing?

Inventory financing for small businesses will hinge on the liquidation value of the inventory and its sale in the near future. During the application process, lenders will want to see proof that you have excellent inventory turnover and are able to actually sell the inventory. This means that lenders want to see that you have an excellent inventory management system in place. This is so they don’t have to worry that you might be buying more inventory than you need and can sell.

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