Stock funding (or inventory finance) provides working capital secured against a business’s existing or incoming stock.
The lender advances funds so the company can purchase more inventory without tying up cash. As stock is sold, the business repays the facility, allowing continuous replenishment. Lenders may monitor stock levels and sales performance as part of their credit control and risk management process.
Benefits:
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A client that we have funded vehicles before approached us for a term loan to buy more stock. They are a re seller of mattresses. They have an opportunity to … Can secure more orders but need to hold more stock.
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