Inventory
Financing & Loans
Many businesses rely on inventory financing to order products before they sell these products. This allows them to order and get the products in hand to ensure they have enough inventory to sell their customers.
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with a Proven Track Record
Since 2008, we've grown with the companies we support.
What is Inventory Financing?
Inventory financing is a form of short-term lending using a loan or revolving credit line. Because the inventory itself can act as collateral, companies can buy the products they need to sell at a later time. This gives them more flexibility in buying seasonal products they know will sell later, but they need to purchase it from the supplier before then.
How Inventory Financing Works
Businesses get inventory loans to buy products that they can put in the warehouse before it goes out to retailers or sells from an online store. A type of asset based financing, these loans help smaller companies especially when they need to purchase items to sell or supplies to make items to sell.
Use Cases
How To Use Inventory Financing
Getting an inventory loan can help a business with cash flow issues that arise when they need to make big inventory purchases from suppliers. There are plenty of ways to use business inventory loans.
Learn Why Us-
Expand Product Lines
Want to add new items to your stock? Inventory loans help you expand product lines so you can offer new options to your customers.
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Meet Seasonal Demands
Having products on the shelves is critical during certain seasons. Inventory loans help you get the right products in stock before the season arrives.
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Reduce Costs From Other Areas of Your Business
It's important to keep cash flowing in the right directions so your business can run smoothly. By using inventory business loans you can keep payroll and other operations on track.
Why Apply for an Inventory Loan?
Meet Customers' Needs
Businesses need to have product on hand that meets their customers' needs. Small business inventory loans give companies the cash flow they need.
Increase Sales Channels
Selling products online, in store, and through other sales channels ensures that the inventory you buy won't go to waste. Inventory loans help you increase your sales channels.
Invest in an Inventory Management System
Managing inventory takes a lot of time and effort. The right inventory management system simplifies this process and saves you hours of time.
Minimum Eligibility Requirements
To qualify for a business inventory loan, companies need to meet certain criteria. Here are the minimum requirements to get an inventory loan.
| Time in Business | Minimum 6 Months |
|---|---|
| Business Annual Growth Revenue | $240K+ Annual Revenue |
| Business Checking Account | Yes |
| US Citizen/Based Company | Yes |
| FICO Score | 570+ |
| Other Financing | None |
| Bankruptcies | None open |
Better Your Business With Fora Financial
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Grow Your Business
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Meet Customers' Demands
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Increase Sales
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Improve Management of Inventory
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Buy New Inventory
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Pay for Necessary Tools
Success Stories
Facilitating Growth in Commercial Forestry Industry
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Funding Amount: $750,000
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Industry: Forestry
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Use of Funds: Hiring Additional Staff, Acquiring New Equipment and Materials
Opportunistic Growth
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Funding Amount: $400,000
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Industry: Electric Company
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Use of Funds: Opportunistic Growth
Fueling Expansion
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Total Funding: $5,000,000
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Renewals: 4 times in 16 months
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Initial Funding: $1,100,000
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Industry: Commercial Storage
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Use of Funds: Cashflow Gaps, Growth
Crafting Culinary Success
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Funding Amount: $1,000,000
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Industry: Specialty Food
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Use of Funds: Production, Technology, Marketing
Fitness Transformations
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Funding Amount: $150,000
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Industry: Fitness and Wellness
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Use of Funds: Expansion
Brewing Success
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Funding Amount: $170,000
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Industry: Food and Beverage
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Use of Funds: Product development, customer experience, marketing
Empowering Wellness
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Funding Amount: $750,000
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Industry: Health and Wellness
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Use of Funds: Bridge Financing
In with the View
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Funding Amount: $240,000
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Industry: Construction
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Use of Funds: Expansion
Growing Green
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Funding Amount: $750,000
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Industry: Landscaping
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Use of Funds: Payables, Expansion
Crafting Success
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Funding Amount: $800,000
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Industry: Manufacturing and Wholesaling
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Use of Funds: Equity Raise, Production, Efficiencies
Advancing Medical Excellence
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Funding Amount: $720,000
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Industry: Healthcare
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Use of Funds: Equipment, Staffing, Patient Experience
Inventory Financing and Loans FAQ
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Each loan type has different terms. Typically, they must be paid back within 6 to 12 months because they are considered a short-term financing product.
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Inventory financing lenders offer a variety of loan products. Lines of credit, merchant cash advances, term loans, and traditional financing are the main types of inventory financing available.
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Most businesses that need inventory financing choose a short-term loan product that uses the inventory as collateral. These are the best types of financing to buy inventories.
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If you need to resupply your inventory for an upcoming season before you have the revenue to pay in cash or you want to add products to your selection, then an inventory loan might be the best option. With a few different loan options, you can choose what fits your business the best.
What Sets Us Apart from the Rest
Get Financing Today
Get started with your application and join Fora Financial's family of forward-thinking businesses.