Inventory Financing
Need to Purchase More Inventory For Your Business? Use This Guide To Learn Your Inventory Financing Options
Get Inventory Financing with LegalRaasta Loan in just 10 minutes
What is a Inventory Financing?
Inventory financing is an arrears-based sourcing solution completely in the mode of a term loan, line of credit or short-term loan that is made to a company for the abrupt purpose of buying products for sale. It works alike equipment financing the inventory itself delivers as collateral on the loan.
As long as you compensate on time, that fund is yours to work with as you see capable. But in case you were to fail to make or default on your loan, your banker or lender would have the right recapture your inventory (or any other inventory of similar value) compensation for your debt.
How to apply for Inventory Financing
Advantages of Inventory Financing
- Allows you to weight inventory.
- Allows your business to acquire inventory.
- Easier to get than traditional financing.
- Line can have increment as your company grows.
Documents Required for Inventory Financing
DRIVER’S LICENSE
VOIDED BUSINESS CHECK
BANK STATEMENT
BALANCE SHEET
PERSONAL TAX RETURNS
COMPANY REGISTRATION INFORMATION
APPRAISAL REPORT
PROFIT & LOSS STATEMENT
COPY OF INVOICES OF THE INVENTORY
COLLATERAL DOCUMENTS
Frequently asked questions
- The seller consents to hand-out a security relevance in its receivables and inventory to the lender as collateral for the objective of securing the loan. In most examples, the lender will need personal guarantees from the seller company’s owners.
- Most of the asset-based lenders who lend to borrower depend upon the credit insurance. Credit insurance is in comparison inexpensive and is handed out to reputable sellers by insurance companies to contribute coverage for the receivables.
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