What It is:
Inventory financing is a form of asset-based lending that allows businesses to use inventory as collateral to obtain a revolving line of credit. Retailers must keep the shelves stocked and therefore have a lot of money tied up in inventory. An inventory revolving line of credit helps companies free up cash tied up in their inventory
Who should use this:
- Small to medium size retailers who aren’t able to secure financing from a traditional source.
- Rapidly expanding companies who need an aggressive inventory advance in order to support the growth of the business.
- Retailers in a turnaround state, where Crossroads can provide a bridge financing solution until the company is able to get back to a bank type relationship.
- Keeping the shelves stocked
- Keeping payables current
- Help improve cash flow for seasonal businesses