Is Your Business Falling Short on Inventory?
When it comes to inventory and sourcing, small business owners sometimes find themselves in a bit of a “chicken and egg” predicament. Of course, you need goods and services in place in order to generate revenue. But then there is the question of raising the capital to make those purchases. It is often necessary in these situations to take on some debt to finance the building out of your inventory.
If your inventory has surpassed the amount of space available for storage or your employees are getting creative to work comfortably, then expanding the physical space of your business could be a good use of your business loan. Just make sure that the investment leads to increased productivity, profits, or both. Whether your business sells the latest clothing or the coolest new technology, there is likely a need to constantly update your inventory to stay relevant.
Is Getting Loan for Increasing Your Inventory Right For Your Business
For many retailers, inventory is bought in bulk to prepare for the upcoming season, meet increased demand, or take advantage of bulk pricing. If you need to buy inventory in bulk, then small business financing can help you better manage your cash flow and take advantage of the opportunities you’ve spotted.
Other times, you may need extra working capital to smooth out your cash flow during the slower times. An inventory loan, in the form of a short-term working capital loan, is the perfect solution for business owners in either of these scenarios. This is because the business owner(s) can use this type of small business loan to get the inventory they need to prepare for a busy season while knowing it will be paid off shortly after the products are sold. The shorter term means less interest is paid and the more money the business can make off the product.
How Can I Get a Loan to Increase my Inventory?
If you are an established business with good sales, but limited working capital, it can be tough to get inventory financing from a traditional lender. However, an online lender such as Lendified can provide you with the funding you need. Lendified offers short term business loans through a simple and easy online process. You can get pre-qualified in minutes and speak with one of our Funding Specialists here in Canada to discuss your needs.