Retail Inventory Financing
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.
Benefits:
- Keeping the shelves stocked
- Keeping payables current
- Help improve cash flow for seasonal businesses
E-commerce Inventory Financing
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. E-commerce businesses must keep a large amount of inventory on hand in order to fulfill just in time orders. An inventory revolving line of credit helps e-commerce businesses free up cash tied up in their inventory located in their warehouse or at Amazon fulfillment centers.
Who should use this:
- Small to medium size e-commerce businesses 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.
- E-commerce businesses 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.
Benefits:
- Keeping the warehouse and Amazon fulfillment centers stocked with inventory.
- Keeping payables current
- Help improve cash flow for seasonal businesses
Commercial Inventory Financing
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. Commercial businesses must often maintain large levels of inventory in their warehouse or manufacturing facility. Crossroads provides stand-alone inventory revolvers and partners with receivable lenders and factors in order to provide a full financing facility for its clients.
Who should use this:
- Manufacturers, wholesalers and distributors who have money tied up in their inventory.
- Companies who have an AR or factoring facility, but are looking for additional capital leveraged by inventory.
- Companies with seasonal build ups of inventory where AR to inventory ratios make impact ability to fully leverage their collateral.
- Businesses in a turnaround state or newer companies not able to qualify for a traditional source of financing.
Purchase Order Financing
What It is:
Purchase order financing is a unique Financing Program that allows manufacturers and wholesalers to receive up to 100 percent of the funds needed to fill an order when they are unable to do so on their own. This happens for any number of reasons, but is commonly due to cash constraints or lack of credit from suppliers.
Who should use this:
Small to medium sized businesses that might not have the capacity or credit to fill a larger-than-usual order. This type of financing agreement allows companies to be able to take advantage of larger orders – such as one from a big box retailer like Wal-Mart, without having to tie up too much capital, or capital they do not have.
Why Choose Crossroads?
-
Advances on Inventory up to 85% of Net Orderly Liquidation Value
- Inventory Revolving lines of credit starting at $500,000
- When banks say NO, we say YES
- No AR to inventory ratio restrictions
- Financing for Retail, E-commerce and Wholesale Businesses
- Can Fund up to 100% of cost to fill purchase orders
- Perfect partner for Factors as we focus only on inventory