Maintaining the right level of inventory in your business is crucial to your success. There may be times when you need to buy more inventory in preparation for a peak season or want to take advantage of bulk pricing. Other times, you may need extra working capital to smooth out your cash flow during the slower times. An inventory loan, in the form a short term working capital loan, is the perfect solution for business owners in either of these scenarios.
Do I need an inventory loan?
Inventory loans are best for existing businesses who are product-focused, such as a retailer. 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 of the product.
Inventory loans are also a good solution for businesses that have to keep large amounts of inventory in stock in a big storage centre or warehouse. This is because medium to large wholesale retailers who don’t have much working capital to replenish their stock may have enough inventory for the next few months, but not enough beyond that.
How can I get an inventory loan?
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 a free quote in minutes and speak with one of our Funding Specialists here in Canada to discuss your needs.