Since most companies spend about 25-30% of their entire annual budget in inventory alone, it’s easy to find yourself in need of more inventory without the means to pay for it.
You want to continue to meet customer demand (especially during your busy seasons) but you’re also concerned about how you can find the income you need to keep your inventory in good shape.
You don’t want to have to raise costs to customers.
For many, inventory financing is the answer.
But what is a business line of credit, and how does it work?
Read on to find out.
1. It Works a Lot like a Credit Card
Many people link that understanding an inventory line of credit is complicated, but the truth is that it’s pretty similar to how your standard credit card works.
You apply for inventory financing through a trusted lender, are approved, and can access the funds when you need to.
You don’t actually need to pay any interest or even make payments until you actually start using that line of credit.
This makes it an especially affordable method of borrowing money for newer or smaller businesses.
2. The Amount You Borrow Is Flexible
Unlike many other business loans, inventory financing lenders do not require you to state or set a specific amount of money that you can access.
Instead, you can set the line of credit maximum for the amount of money that you truly need to be able to keep your business running smoothly.
3. Secured vs. Unsecured Options
When you apply for an inventory line of credit, you’ll be able to choose between secured and unsecured options.
An unsecured line of credit means that you don’t need to put up any kind of collateral on the loan, though with a secured loan, you will need collateral.
Speak with your financial in-house team to determine which option is a good fit for you.
4. They’ll Help You Grow Your Business
If you don’t have popular items in stock at all times, there’s a good chance that customers will buy them from your competitors instead.
A lack of inventory doesn’t just inconvenience your customers and cost you profits — it also seriously hurts your brand’s reputation.
Especially since close to 80% of customers say that they want to be aware of current inventory levels when they shop (especially online) being able to have exactly what your customers are looking for in stock when they want it will help you to grow your business.
Learn About Our Inventory Financing Options
Now that you have a firmer grasp on how inventory financing works and if it’s right for your company, you’re likely curious about how the application and approval process works.
At Dealstruck, we put together a customized lending package designed to help your company thrive both now and in the future. We can help you access anywhere from $50,000-$100,000 in as few as 48 hours.
Start your application process today, and learn just how successful you can be when you work with a lender that’s truly acting in your company’s best interest.