Benefits of Inventory FinancingPublished on 3rd April 2018 2018-04-03T10:51:08+00:00 - Last update on 17th March 2020 2020-03-17T16:01:36+00:00
To make money you need to spend money. This is especially true when discussing your business’ inventory. Keeping your customers satisfied with what your business has to offer is crucial, so ensuring that you have the ability to acquire more stock and refresh your inventory according to seasonal trends is vital. But, if your business is operating on a tight budget, achieving this goal on your own isn’t always easy. That’s why more and more business owners are exploring the benefits of Inventory Finance. Inventory Finance offers you a line of credit that helps your business bring in fresh stock and raw materials that can be sold and converted into cash. So if your business operates in sectors such as retail, catering, manufacturing or textiles, here’s what inventory finance has to offer.
- Access to additional stock
- Able to negotiate discounts with suppliers
- Helps maintain your stock levels
How does Inventory Finance give my business access to more stock?
Inventory Finance gives your business access to a Revolving Credit Facility. Much like a credit card, you gain access to an allowance which gives you the flexibility to quickly acquire additional stock and raw materials from your suppliers, enabling you to cope with larger than expected customer volumes or refresh what you have on offer in time for seasonal trading periods. Therefore, Inventory Finance gives you the ability and confidence to make the most of the opportunities that are available.
Can I negotiate with my business’ suppliers?
The additional support and confidence you can gain from Inventory Finance mean you can go on to bulk order stock, supplies, ingredients and raw materials from your suppliers. Although suppliers naturally want to sell their goods for the highest possible price, they also want to retain your business as one of their clients. So, as a savvy business owner, you could use this to your advantage. By placing bulk orders, you could encourage your suppliers to offer you discounts or exclusive deals, some of which may only be available for a limited time. Plus, if your business trades internationally, ordering inventory in bulk could reduce the cost of shipping and transportation. Therefore, to maximise the profit from each subsequent sale, using Inventory Finance to quickly withdraw funds from a lender-controlled facility could prove invaluable.
How does Inventory Finance keep my stockroom full?
With Inventory Finance, you can use the proceeds from each sale to either repay the money that you’ve borrowed immediately or within 30 to 90 days. However, after repaying the funds that you’ve drawn, you can go on to withdraw them again in order to acquire even more stock. Therefore, Inventory Finance enables a cycle of withdrawing, repaying and withdrawing funds which helps to keep your stockroom full and your customers satisfied. Therefore, Inventory Finance could be seen as a means of growing and improving the reliability of your brand, helping you earn more and more customers as a result.
Need help maintaining your business’ inventory?
Keeping your customers happy is key to ensuring the success and long-term sustainability of your business. To do so, you need to make sure that your shelves are stacked with the goods that they seek. If you don’t, they’ll take their cash elsewhere, turning your misfortune into an opportunity for your rivals. However, you can avoid this by applying for Inventory Finance. So if you’re in need of more stock or you’re looking to refresh your inventory, apply for Inventory Finance today, or find out more with Rangewell.
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