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Inventory Loan

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Inventory loan
A secured short-term loan to purchase inventory. The three basic forms are a blanket inventory lien, a trust receipt, and field warehousing financing.

Inventory Financing
A loan or line of credit available to a business secured by its own inventory. That is, a business places its inventory as collateral in exchange for an operating loan. Inventory financing is advantageous for businesses with a large amount of physical inventory ready to ship. Inventory financing is used as a stop-gap against temporary cash flow problems resulting from inventory ready to sell but not sold. It is not recommended as a long-term financing tool.


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The condominium inventory loan was structured with release prices to permit sales of units during the lease-up period.
Other forms of commercial finance include bankruptcy reorganization, expansion financing, import and export financing, inventory loans, secured lines of credit, and merchant account advances.
In conjunction with the extension and increase, the Company fully repaid and terminated its $15 million inventory loan from Wells Fargo.
 
 
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