Enhance Liquidity and Flexibility by Leveraging Stock Assets to Access Business Capital.
Inventory Financing defined
Inventory Financing works best for resellers or distributors of products that someone else manufactures. When a reseller has a lot of inventory on hand and revenue increases, the need for cash grows. As an example, seasonal retailers need a lot of cash towards the middle of the year to buy goods for the holidays.
Generally, the banks do not lend against standalone inventory. They want multiple collateral points such as accounts receivable, fixed assets or real estate together, to provide financing for a growing enterprise. That’s where YDS comes in.
Why Inventory Financing?
If you run a business that resells or distributes someone else’s inventory, like a retailer, Inventory Financing could be the best way to feed your company’s growth. By matching financial structure with your business model, allows you to borrow and pay back as much capital as you need, when you need it.
By leveraging your existing inventory, our alternative lender partners can provide funding your bankers may not be able too. You can access the capital your firm needs to buy more products, pay salaries or fill timing gaps in cash flow.
Since inventory is constantly changing, it is considered a current asset for a company. Therefore, inventory financing is usually structured as a line of credit or a short term loan, giving the company ability to borrow when cash is needed and pay down the loan when the company is flush with cash.
Inventory Financing is a strategic lending option that enables you to navigate fluctuations in demand and maintain a healthy balance between liquidity and operational efficiency.
The Challenges of Inventory Financing
As appealing as Inventory Financing can be, there are several things to consider ahead of time:
The YDS Approach to Inventory Financing
While the process of applying to Inventory Financing can be difficult, we provide a specialized consultation process that help business owners throughout applying:
How do we get started?
Contact a YDS expert for a short no obligation free consultation call.
YDS will help you weigh your options and introduce you to the most needed resources.
YDS Subject Matter Experts help prepare you for the capital infusion, as well as improve your appeal to potential lenders.
YDS is there to guide and support you through the application to secure financing.