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Need to Purchase More Inventory For Your Business?
Use This Guide To Learn Your Inventory Financing Options
Get Inventory Financing Loan with FinBucket Loan in just 10 minutes
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.
How to apply for Inventory Financing
Advantages of Inventory Financing
Following documents are required for Inventory Financing
FREQUEntly Asked Questions
Get answers to all your questions
Delinquently, most business lenders require borrowers to offer some form of collateral or personal guarantee. That’s why the capability to use the inventory itself as collateral through inventory financing is such a major perk for borrowers. Lots of business owners who opted inventory financing over other business loan products do so to take eminence of this alternative form of collateral or inventory.
- The seller consents to hand-out a security relevance in its receivables and inventory to the lender as collateral for the objective of securing the loan. In most examples, the lender will need personal guarantees from the seller company’s owners.
- Most of the asset-based lenders who lend to borrower depend upon the credit insurance. Credit insurance is in comparison inexpensive and is handed out to reputable sellers by insurance companies to contribute coverage for the receivables.
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