Financing inventory is not a simple process and there are only a limited number of inventory financing companies currently operating in the UK.
You need a partner who can help you understand how Inventory Finance works, its benefits and limitations and work with you to navigate:
- The different types of financing available and what is appropriate for your business
- Who are the inventory lenders currently active in the UK (post-pandemic a number of lenders who previously operated in the sector have paused or substantially reduced lending)
- The differences between inventory and stock finance - and work out what is best for your business's individual circumstances
- Is inventory finance available to your company - lenders are very focused on the types of inventory that they finance and rates and terms can vary substantially depending on whether you are a retailer, wholesaler or manufacturer
- Is it more appropriate to consider wholesale inventory financing or is it more affordable to do individual business inventory loans
- Are you eligible for an Inventory line of credit?
- Does your partner have the lending relationships and ability to negotiate the best inventory finance rates
You may have hundreds of thousands of pounds worth of stock standing idle, and this can become a problem. The money tied up in your stock is not available to run improve and grow your business. In fact, one of the biggest assets in your business could be your inventory - especially if you work with high-value items such as electronics or luxury goods.
Inventory Financing could let your business release the value you have already invested in your inventory to raise money, by using it as security for a revolving line of credit.
You could use this line of credit in any way you wish. It can be ideal to simply buy in additional inventory, ensuring you have the stock you need. You can use it to fund production, to deal with an unexpected expense or to help your business work through seasonal fluctuations in cash flow.
If you're looking to find out more about lines of credit speak to Rangwell today! We can give you an overview of your projected loan payment. Just have your cash flow statements on hand so we can get a good overview of the current financial standing of your business.
What is Inventory Financing?
A way to tackle those unpaid invoices and is through inventory financing, so if you're looking to balance out the balance sheet? Inventory financing is a type of business loan based on your stock inventory's value. The lender will provide a loan for a percentage of your inventory value. The inventory itself will serve as collateral for the loan.
In most cases, business owners will use inventory financing to purchase new inventory, but it can also be used for many other business expenses too, including:
- Plug short term cash flow gaps for businesses that have capital tied up in inventory
- Stocking up on inventory to prepare for an increase in seasonal business to meet customer demand
Speak to a financing company like Rangewell. We can talk to you about the monthly payment, how inventory level and invoice factoring works. We can provide a solution to ease the stress of those outstanding invoices through a challenging time.
How inventory finance works
Inventory Financing, or Inventory Lending, is a type of Asset-based Lending that is a short-term loan, secured by the inventory you already hold.
As the inventory is sold to customers, the loan is gradually paid off. When you buy in new inventory the cycle can start all over again.
So, if you are a retailer, inventory finance can help you keep your shelves full. If you are a wholesaler, you can keep your warehouse stocked and ready with all the lines your customers need.
You have more to sell, without having to pay upfront.
To find out more about how you can get money for inventory, speak to Rangewell today!
Why you need Rangewell to arrange Inventory Finance
Inventory Finance can be an appropriate solution for many businesses, but with some providers, costs and fees may be high.
Finding an arrangement that suits your business and your financial circumstances, and offers the level of funding you need may require expert help.
- Providers may specialise in certain sectors - and may not have the expertise to offer solutions for your business.
- Some providers may not offer the scale of funding needed by your business
- Interest rates and fees may vary greatly between lenders
- Inventory financing interest rates may be higher than some other kinds of funding, making getting the most competitive solution essential for your business
- You will need to be an established business with a good sales record and credit history
At Rangewell we can work with you to look at your financial needs, and help you decide if an Inventory Finance solution really does offer the most appropriate solution for your business. Then we can help you find the lenders who are most suitable for your particular business sector, and who can provide the level of funding you need at the most competitive rate.
If you're looking for an inventory financing loan, speak to Rangewell today. We can find a type of financing to suit your needs. We'll discuss your funding options in detail and can offer you deals that traditional banks can't. The find out more about online business loans, get in touch now!
Why you should call us now
At Rangewell, we are experts in business funding. We will work with you to see if an Inventory Finance facility really is the best solution for your business and look at the alternatives, such as a business credit card, Purchase Order Finance or even more general small business loans if it's not. There may alternatives to inventory that may be a better option! Speak to Rangewell today to find a type of lending to suit your needs.
To see if Inventory Finance can provide the solution that you need just call us. If your business credit history shows that you have less than desirable credit scores, our inventory financing lender will work hard to find a deal that works for you.