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.
Why Choose Crossroads?
- Advances on Inventory up to 85% of Net Orderly Liquidation Value
- Inventory Revolving lines of credit starting at $1 million
- 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