Inventory financing

Inventory financing

Used in the context of factoring and general finance to refer to loans to consumer product producers that use inventory as collateral. See also: Inventory loan.

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.
References in periodicals archive ?
The LTV bracket in inventory financing ranges from 30 to 100 percent in Q1 2015, while the benchmark ratio across all financing types and property types is 71 percent.
Our inventory financing portfolio is also showing healthy aging and turnover metrics, so overall, a solid year once again for the RV industry which should carry over into 2015.
TCFIF and its affiliates will be a convenient one-stop shop, offering inventory financing, equipment financing and commercial banking services.
These may include inventory financing, open account financing, extended billing on display merchandise, asset-based loans and enlarged and dedicated credit lines to meet seasonal marketing needs.
Additional methods of financing include leasing, letters of credit, accounts receivable financing, factoring, inventory financing and trade credit.
Supports outdoor power equipment dealers across North America with private-label inventory financing
GE Capital s CDF business is investing by working with manufacturers to provide inventory financing programs to dealers, developing relationships with trade associations supporting mobility issues and providing an experienced team.
Inventory Financing from Leading Financial Institutions
com), North America's leading trailer manufacturer, announced today that it has engaged with Northpoint Commercial Finance to provide inventory financing to its network of dealers in the United States.
TCFIF is a premier inventory finance company offering a full range of inventory financing solutions to manufacturers, distributors and their dealers throughout the United States and Canada in the lawn and garden industry, the powersports industry, the recreation vehicle industry, the marine products industry and the consumer electronics and appliances industry.
GE Capital Commercial Distribution Finance (CDF), already one of the top providers of financing to the motorsports industry, is rapidly growing its inventory financing portfolio with smaller and newer motorsports brands.
Programs include inventory financing, accounts receivable financing, traditional asset-based lending, non-funded service programs, retail financing, commercial end-user financing, franchise financing and related financial services.

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