What is Inventory Financing?

Inventory financing is a versatile solution for companies with significant amounts of capital tied up from purchasing inventory. It can be used to get new projects off the ground or improve cash flow. Inventory financing can also facilitate new opportunities for growth when they present themselves and provide financial stability when the going gets rough. How? By providing companies with a flexible financing arrangement that delivers the funding needed to meet a wide variety of business goals and needs. 

If having a lot of your working capital locked up in inventory sounds familiar, your business should look into inventory financing the next time an opportunity presents itself or a financial hurdle appears in your way. 

How Inventory Financing Helps Businesses

Inventory financing provides access to the funds you need by leveraging the value of your inventory. In inventory financing arrangements, your existing inventory acts as collateral, and inventory financing companies, such as Accord, provide funding based on a percentage of the value of the inventory. 

Inventory financing is designed to help you stay ahead of the curve. You can use it when seasonal fluctuations or rough patches affect your business’s finances to handle many different types of business expenses, not just purchase inventory. Inventory financing loans are often used to:

• Provide additional cash flow
• Acquire new product offerings
• Expand into new segments or locatio

Inventory financing is an ideal funding solution for:

• Retailers: Retail operations – from large department stores to small businesses – often use retail inventory financing to meet their financial needs when they identify growth opportunities that are currently beyond their reach or facing a downturn in business. 
• Wholesalers: Wholesale companies often have to keep huge volumes of inventory on hand. With so much capital tied up in inventory, inventory financing provides a great option for securing additional working capital. 

Seasonal Businesses: While seasonal variation affects all businesses to some extent, certain types of specialized retailers and other businesses must find ways to overcome huge peaks and valleys in sales volume throughout the year.

When Should Businesses Use an Inventory Line of Credit?

Inventory financing can be used to to provide a business line of credit that companies can draw from when they:

• Require ongoing access to funds 
• Need to cover seasonal cash flow shortages
• Have operating expenses to cover
• Have a high inventory turnover 

How to Qualify for Inventory Financing

At Accord Financial, we serve a wide variety of industries. Both startups and established businesses can apply for inventory financing because length of operation is not a primary qualification factor. Also, Accord provides financing solutions for companies of all sizes, so smaller operations can obtain small business financing based on inventory.  

Can Businesses with Bad Credit Still Apply?

Even if you have poor credit score, inventory financing through Accord can be a viable financial solution because personal or business credit history is not the sole consideration. As an asset-based lender, Accord’s underwriting process is focused on the actual value of the company’s assets and not necessarily on historical financial performance.

Get Flexible Inventory Financing Solutions from Accord

Accord Financial’s inventory financing solutions can be used to meet a wide variety of pressing business needs or provide additional capital to pave the way for growth to new heights. Ultimately, how you put your inventory financing to use is entirely up to you. Accord provides financing solutions that help businesses thrive. Contact us to learn more!