What is a Inventory Financing?
Inventory financing is a debt-based sourcing solution literally in the form of a line of credit, term loan, or short-term loan that’s made to a company for the quick purpose of purchasing products for sale. It works similarly to equipment financing the inventory itself serves as collateral on the loan. As long as you repay on time, that inventory is yours to work with as you see fit. But in case you were to fail to make or default on your loan, your lender would have the right repossess your inventory (or any other inventory of similar value) repayment for your debt.