Getting access to financing is a crucial aspect of running a small business. Every company encounters occasional fluctuations in cash flow – customers are slow to pay their bills, unexpected expenses arise, or the business is seasonal in nature.
If you are running a successful small business, there are a number of options available for getting access to cash quickly and easily. Inventory Financing lets you unlock the cash that’s tied up in your physical assets by allowing you to use your existing inventory as a form of credit.
How Does Inventory Financing Work?
When used in combination with an asset-based loan or invoice factoring, Summit Financial Resources’ Inventory Financing can significantly expand your working capital. We can loan against a variety of inventory, providing a lifeline to successful businesses that are caught in a cash flow squeeze and need additional capital on hand.
Our inventory financing add-on program uses your physical inventory in addition to your accounts receivable as collateral. We provide a line of credit, and you pay it back when the inventory is sold through the use of our Invoice Factoring program.
Like you, Summit Financial Resources is a small and nimble shop – which means we don’t have layers of management or the bureaucracy that can slow down the loan approval process. We evaluate each client individually and make decisions quickly, so you get your hands on the cash you need when you need it most.
Why Borrow Against Inventory?
If your company has strong sales and a high inventory turnover rate, our inventory financing add-on program is an option to consider exploring. Here are a few reasons why:
- For manufacturers, it evens out cash flow during seasonal slowdowns and can enable the business to acquire extra inventory to sell during peak seasons.
- For wholesalers who have the next few months’ worth of orders in a warehouse but not a lot of cash on hand to replenish their supply, it provides a reliable source of capital to help buy additional inventory to fill future orders.
- It offers a flexible form of small business financing that frees up some of the cash normally associated with maintaining inventory — cash you can use to manage other operating expenses or implement that much-needed business expansion.
Inventory financing can make the difference between staying with the status quo – and moving toward monumental growth.
Inventory Financing is a few clicks away.
Summit Financial Resources specializes in working capital financing for small to medium-sized businesses that need increased cash flow. We provide working capital financing through invoice factoring, asset-based lending, inventory lending, and equipment financing.