Inventory loan

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.
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
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* An $8,000,000 inventory loan on for a commercial condominium project on Bowery.
TRANSACTIONS
The agreement has reportedly enabled the retirement of Corgenix's factoring line of credit and inventory loan with Summit Financial Resources LP and the financing will be used for working capital purposes.
Corgenix Medical Corporation signs new USD1.5m revolving credit line to enhance financial position
been drawing about $25,000 from the business for personal use, while the remaining $25,000 of earnings is used for debt principal repayment on a large inventory loan arising from Martina's recent purchase of the business.
Minimizing payroll tax costs by electing S status for a former proprietorship
"Funds in use at Heller rose 20 percent, principally through the company's inventory loan program."
'96 a strong year for factors
* Inventory loans. Few banks will make an inventory loan because of the volatility of commodity markets.
What bankers want to know before granting a small business loan
The 24-month condo inventory loan is secured by this 48-unit development and was provided by a balance sheet lender and features full-term interest-only payments.
Developer bags $68M inventory loan on Upper East Side condo
Greysteel arranged a condo inventory loan for five townhomes in the Carroll Gardens neighborhood of Brooklyn, NY.
TRANSACTIONS
* A $6,500,000 inventory loan on a 8-unit condominium building on Bowery.
TRANSACTIONS
A condo inventory loan totaling $30 million was recently closed.
Time Equities Inc
* A $24,250,000 condominium inventory loan in Aventura, FL.
Emerald Creek Capital LLC

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