What is Inventory Financing?
Some strategies involve borrowing to maintain adequate inventory levels, especially when demand is anticipated to go up. This type of short-term borrowing is highly effective to help with a company’s cash flow.
A certain percentage of the total value of the inventory is taken by the lender, and since the inventory is taken as collateral, there is no need for cash down payment. Many industries (for example, the manufacturing, forestry, mining and construction industry) use this type of financing.
Why should I leverage Inventory Financing?
It allows you to focus on increasing your sales volume by reallocating resources to support your sales strategies and capitalize on the growing demand.
Time is of the essence and customers need to get their goods as soon as possible. These days pricing takes a backseat to availability and if a company does not have the product available within a reasonable time, your customers will go elsewhere.
As inflation increases, your cost of raw materials increase, and that affects your gross margins. By applying an inventory financing strategy, you put a ceiling on your costs effectively growing your margins by capitalizing on your sales during inflationary times.
By providing available products to mission critical situations improve customer relationships and helps solidify future orders.
Financing Requirements
Chelsey Capital offers small business
funding options with minimum
eligibility requirements:
Location
Canada
Monthly Revenue
$10k+
Time in Business
6+ months
How Does It Work?
STEP 1
Assess
Understand your growth opportunities and your financing needs.
STEP 2
Apply
Fill out our application. It generally takes about 10-15 minutes to complete.
STEP 3
Approve
Our team will then work with you to ensure you receive your funding promptly.
Get Started Today
Complete our online application and we’ll contact you with financing options tailored to your business needs.