Inventory Line of Credit: Flexible Financing for Inventory Management
An Inventory Line of Credit is an ideal financing solution for businesses that rely on significant inventory investments to operate. Whether you’re in eCommerce, wholesale/distribution, technology, medical & healthcare, or manufacturing, this type of line of credit allows you to access working capital tied to the value of your inventory. This gives your business the financial flexibility to manage stock levels, meet customer demand, and invest in growth without the stress of upfront costs.
With an Inventory Line of Credit, your borrowing power fluctuates with your inventory value, providing a dynamic and scalable solution for businesses that experience seasonal sales cycles or growth spurts.
How Does an Inventory Line of Credit Work?
An Inventory Line of Credit works by allowing you to borrow against the liquidation value of your inventory:
- Assess the value of your inventory, including raw materials, finished goods, or goods for resale.
- The lender extends a revolving line of credit based on a percentage of your inventory’s liquidation value.
- Access funds as needed to purchase more inventory, cover operating expenses, or respond to market demand.
- As inventory levels fluctuate, the available line of credit adjusts accordingly, providing flexible capital when you need it.
This ensures that your business always has access to working capital based on the inventory you already own, making it an ideal solution for businesses with fluctuating stock levels.
Unique Benefits of an Inventory Line of Credit:
- High Credit Limits: Facility size ranges from $100,000 to $10,000,000, depending on your inventory value and business needs.
- Revolving Credit: The credit line adjusts as your inventory fluctuates, ensuring constant access to working capital.
- Competitive Rates: Interest rates start at Prime + 2%, offering affordable financing for inventory purchases.
- Up to 85% Financing: You can borrow up to 85% of the liquidation value of your inventory, giving you access to significant working capital.
- Fast Funding: The application process takes 7+ days, ensuring you can secure funds quickly to restock or expand inventory.
Qualifications for an Inventory Line of Credit:
- 1 year in business: You need to have been operational for at least 12 months.
- No minimum FICO: Approval is based on your inventory, not just your credit score.
- $1 million in annual sales: Your business must generate at least $1 million annually.
- $1 million in current inventory: You must have at least $1 million in inventory to qualify for the line of credit.
Advantages for Your Business
- Manage Inventory Cycles: As a business with fluctuating inventory needs, having access to a flexible line of credit ensures you can restock inventory during peak seasons or times of high demand without straining cash flow.
- Preserve Working Capital: Rather than depleting your cash reserves, you can use the inventory you already have to secure the working capital you need.
- Scalable Financing: As your business grows and inventory levels increase, your line of credit grows with you, giving you the financial resources to keep pace with demand.
- Cost-Efficient: You only pay interest on the amount you draw, making it a more affordable option compared to traditional loans or short-term financing.
With an Inventory Line of Credit, your business can effectively manage stock levels, respond quickly to customer demand, and take advantage of growth opportunities without sacrificing cash flow. Apply today to secure flexible, revolving financing based on the value of your inventory. Apply Now