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 ?
Collector AB (STO:COLL) announced on Tuesday that Collector Bank has signed an extensive financing agreement with Rossignol, which includes factoring and inventory financing for the Rossignol Group.
BANKING AND CREDIT NEWS-July 13, 2016-Rosenthal launches alternative inventory financing solutions division
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.
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
M2 EQUITYBITES-July 13, 2016-Rosenthal launches alternative inventory financing solutions division
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.
14 June 2013 -- US financial services firm GE Capital (NYSE: GE) said that its Commercial Distribution Finance business will provide inventory financing to dealerships that carry Russian Ural Motorcycles distributed by Washington, USA-based Irbit Motorworks of America, Inc.
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.
Commercial Distribution Finance (CDF), a business of GE Capital (NYSE:GE), announced on Thursday that Arctic Cat Inc (Nasdaq:ACAT), a manufacturer of recreational products, has chosen CDF as an exclusive provider for dealer inventory financing across North America.
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.

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