Inventory financing

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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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
The company's solutions include full-service factoring, accounts receivable management services, inventory lending, asset-based lending, and international financing.
Hiway is using ComCore software to help its push into commercial real estate lending, primarily, although the credit union also will do equipment and inventory lending, said Business Services Manager Randy Carlson.

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