Our Solutions
Our Solutions
INVENTORY FINANCING
Inventory Financing is a financial solution designed to empower businesses with the flexibility to manage their inventory needs effectively. Maintaining optimal inventory levels is a balancing act that impacts cash flow, customer satisfaction, and operational efficiency. Inventory finance steps in as a strategic ally, ensuring that businesses have the resources to stock, store, and distribute products without compromising their financial stability.
Why Inventory Financing?
Is a financial solution that helps businesses manage their inventory needs by providing the necessary funds to purchase, store, and distribute goods. This form of financing is particularly valuable for businesses that rely on inventory to operate, such as retailers, wholesalers, and manufacturers.
How does it work?
Inventory finance it’s a tailored solution that harmonizes your inventory management goals with your financial objectives, allowing you to seize growth opportunities and navigate market fluctuations with confidence.
Here’s how typically works:
- Inventory Assessment: The process begins with the business evaluating its inventory requirements. This includes estimating the amount of inventory needed based on factors like customer demand, production cycles, and seasonal variations.
- Inventory Valuation: The lender assesses the value of the existing inventory or the inventory that the business intends to purchase. This valuation helps determine the financing amount that the lender is willing to provide.
- Inventory Acquisition: With the financing secured, the business uses the funds to acquire the necessary inventory. This can involve purchasing finished goods, raw materials, components, or products for resale.
- Inventory Management: The business manages its inventory to ensure efficient stock control, minimize overstocking or stockouts, and optimize inventory turnover. This involves tracking inventory levels, demand forecasting, and implementing replenishment strategies.
- Collateral and Terms: The terms of inventory financing can involve collateral, such as the inventory itself, and may include personal guarantees or other assets.
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INVENTORY FINANCING
FAQ
Various types of inventories can be financed, including finished goods, raw materials, work-in-progress items, and products for resale.
Inventory is typically valued based on its cost, market value, or net realizable value. The lender’s valuation methods may vary.
The financing amount is often determined by the value of the inventory. Lenders may provide a percentage of the inventory’s value.
Yes, inventory financing can be particularly beneficial for seasonal businesses that experience fluctuations in inventory demand.
Ownership of the inventory generally remains with the business. However, some lenders might hold the inventory as collateral.
Inventory financing is a type of asset-based lending, focused specifically on using inventory as collateral to secure funds.
Why Amrock Financial?
AmRock Financial hasprovided $1 billion + in financing to more than 400+ small and mid-sized businesses in the US and Canada over the last 16 years, working with a pre-approved network of 1700+banks and Non-bank lenders nationwide.
If you are looking for a business loan, refinancing, or additional working capital, we provide Debt Structures from $1 million to $100 million.
Although banks have reduced lending in today’s market there are many other funding options available to you.
If you’re interested in scheduling a 30 min introductory call, book a meeting here:
Overview of our
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- 305-440-8480
- applications@amrockfinancial.com