You’ve researched your target market, you know exactly how to get ahead of your competitors, and you’ve even found the perfect warehouse and office space for your business.
The only problem?
You don’t currently have the cash on hand that you need to purchase inventory to satisfy that target market, outpace those competitors, or fill that warehouse.
An inventory line of credit (Inventory LOC for short) can help.
This is a shorter-term loan that provides you with the funds you need to get the inventory you want, with the inventory itself serving as your collateral.
So, what are the advantages of an inventory credit line?
Read on to find out.
You Can Meet Consumer Demand
Up to 43% of consumers say that they will buy the product they need from a competitor if the store they were originally intending to buy it from doesn’t have the item in stock.
Running out of stock because you can’t afford to purchase the amount of inventory you truly need is bad for business in the long and short-term.
An inventory business credit line can help prevent this.
An inventory line of credit also allows you to take advantage of short-term or unexpected inventory discounts from suppliers — which can mean larger profits margins that allow you to cover the costs of the loan and have plenty of money left over.
A line of credit for inventory is also especially important to ensure you have enough stock during your busy season, like around the holidays or your annual sale.
You Control How Much You Borrow
When you apply for an inventory line of credit loan, you should think of it as more like a credit card than a traditional business loan.
You’re not given a lump sum of funds, but rather are allowed to access a certain amount of money as specified in the loan. Until you actually start using the money, you aren’t charged interest.
You can spend as much of your approved maximum amount as you need, and then pay it down.
In some cases, inventory lines of credit actually have lowe interest rates than fixed loans.
Approval is Fast
Especially if you need to replace your retail or eCommerce shop’s inventory quickly or get enough stock for the holidays, you don’t have time for a lengthy and tedious application process that asks for countless documents that take weeks to process.
You need funds as soon as possible.
When you apply for an inventory line of credit, you can get the funding you need in as little as a week — and sometimes even sooner.
Ready to Apply for an Inventory Line of Credit?
If you need to apply for an inventory line of credit, then know that the lender you work with makes all the difference.
You need a lender that allows you to borrow against invoices when needed, allows you ownership over your customers and accounts receivable, and offers you flexible funding amounts with a fast approval process.
At Dealstruck, we offer all that and more.
Click here to apply for a business loan or inventory line of credit today.