Business Inventory Lending Company
Business Inventory Lending Company
Keeping your shelves stocked with the products your customers need can be a challenge. Especially when you have to manage other cash flow needs, as well. Here at MRKT Capital, we offer inventory-based loans and business inventory financing so you can use your inventory as collateral to secure a revolving line of credit.
How Do Inventory-Based Loans Work?
Business inventory loans are a type of asset-based lending system that allows you to leverage your inventory. We are a reliable inventory financing company that uses the value of your inventory to secure business credit and help expand your business. In turn, this line of credit can help you purchase additional inventory, or get your business through fluctuations in cash flow, like during the holiday season.
Our business inventory loans include the following:
- Business line of credit – This loan works the same way a credit card does, except that it gives access to cash and lower annual percentage rates (APR). The loan allows you to buy inventory, pay off debts, handle seasonal cash flow gaps, and more. Lines of credit are useful if you want to take advantage of unexpected opportunities and act quickly.
- Short-term loans – As the term implies, this loan meets short-term financing needs. While it is useful for various business purposes, it accepts bad credit scores and requires limited paperwork.
- Supplier Credit Facilities – This type of financing focuses more on purchasing new inventory. Consequently, it relies more on your business financials versus just on your inventory. Companies use this type of facility to fill large purchase orders or acquire raw materials for production.
Who Benefits from Inventory Financing?
Small- to medium-sized retailers typically benefit from inventory financing since they lack the financial history to obtain a bank loan. The asset-based lending solution is also useful for wholesalers with a warehouse full of goods ready for shipping in the coming months or retailers that lack the necessary resources for the next production cycle.
To learn more about whether your company is in need of business inventory financing, refer to the list below:
- Product-based businesses – Any business in the manufacturing, retail, wholesale, food, and distribution sectors would be good candidates for inventory financing. Only companies that have been operational for at least one fiscal year, however, can qualify.
- Minimum borrowing requirements –As a provider of business inventory financing, we leave no stone unturned. We look into the details of your business and the type of inventory you’re buying. Once you decide on the right financing option for your business, we’ll discuss whether it meets our minimum borrowing requirements.
- Impressive financial records –We review the history of your finances and inventory. Keeping diligent records will make it easier for you to get approval for inventory financing.
- Due diligence process – Our inventory financing lenders review management systems and inventory tracking to decide whether your company qualifies for the loan. We conduct field examinations to learn more about your company and appraise your inventory.
How Our Inventory Financing Solutions Help You
Inventory financing comes with several benefits. Since the loans are secured by your inventory, we can lower the emphasis on your credit scores. This way, you won’t have to take out a regular business loan.
Here are the different ways our business inventory financing services can help you:
- Updated shelving stock – With a revolving line of credit, you have access to funds that can stock up your shelves and meet customer demands.
- Quick and easy financing – Wholesalers with poor credit histories and inadequate cash flows can easily turn to our business inventory loans for funding.
- Higher sales volume – The loan is a fantastic opportunity to boost the amount of inventory your business manufactures. In turn, you can reap a higher sales volume.
- Accumulating inventory – During periods of lagging cash flow, the loan can help by accumulating inventory and allowing businesses to acquire extra merchandise to sell during periods of fluctuating cash flows, like the holiday season.
Frequently Asked Questions
When Should You Consider Business Inventory Financing?
As long as your inventory is selling well, and you need more money to keep selling, then the loan will work for you. An out-of-date inventory, however, might make it difficult for you to find a willing lender.
Is This Type of Loan Ideal for Startups?
Inventory financing companies can give startups a boost, but it cannot help brand-new companies that still need to gain significant traction in the market. Ideally, your company should have a positive trading history, accurate accounting, a marketable inventory, and a perpetual inventory system that provides the exact level of inventory at any given time.
What Do You Need before Taking Out the Loan?
Like other forms of financing, you’ll need a good credit record and a list of the inventory you want to finance. Having a solid business plan can, furthermore, paint a clearer picture for our business inventory lenders. This way, they can properly guide you in maximizing the loan proceeds and determining how you can pay them back.
What Happens if I Fail to Make Payments on Time?
As a debt-based funding solution, the inventory serves as collateral (the property or assets a borrower offers a lender to secure a loan). You will have the benefit of working with the inventory as long as you make payments on time. Failing to make timely payments, on the other hand, results in the repossession of inventory as repayment of your debt.
Are you ready to finance your business? Call us now or fill out our contact form today.