Inventory Finance: funding based on the goods you carry

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 your 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.

How it 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 on 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 stacked and ready with all the lines your customers need.

You have more to sell, without having to pay upfront.

When you should use Inventory Finance

Inventory financing can be appropriate when your company has a high inventory turnover but is short of cash. It can provide a solution if:

• You are a conventional retailer, with shelves you need to keep full
• You are an online retailer, needing to maintain instant availability
• You are a wholesaler, wanting to stock a large number of lines
• You are a manufacturer ready to prepare for the next production cycle

Borrowing on the stock you already hold can be an astute way to smooth your cashflow, ensuring that you no longer need to sell stock before you can access the value locked up in it.

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 which 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.

​​​​​​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.

If Inventory Finance can provide a cost-effective financial solution, we will help you find the provider who can offer the most competitive rates.

To see if Inventory Finance can provide the solution that you need, please call us.