Retail Inventory Financing: Is It for Your Business?

Retail Inventory Financing: Is It for Your Business?

Every small business is concerned about having adequate inventory. However, inventory can be challenging to manage because of fluctuations in sales. Fortunately, there are financing options available to small business owners including inventory financing. This business financing provides small business owners a line of credit that helps them bring in fresh stock and raw materials that they can sell and convert to cash.

Which Businesses can Use Retail Business Inventory Financing?

Getting retail business inventory financing can benefit small-to-medium-sized retail stores that need financial support to acquire and increase their regular inventory supply of products. These businesses include wholesale traders, product retailers, distributors, e-commerce businesses, seasonal businesses, and product manufacturers.  Accord Financial retail inventory financing loans are ideal for both brick-and-mortar stores and e-commerce merchants. 

What to Expect from Inventory Finance?

With inventory financing, the proceeds from every sale can be used to repay the money you borrowed right away or within 30-90 days. But, after you repay the funds you have dawn, you can withdraw them again to acquire even more stock. Thus, this form of business financing allows a cycle of withdrawing, repaying, and withdrawing funds to help you keep your stockroom full and your customers satisfied. It can be a good way to grow and improve your brand’s dependability, helping you get more customers. 

Benefits of Retail Inventory Financing

Here’s how retail inventory financing can benefit small businesses:

  • Expand product lines. An inventory loan can offer your business the working capital you need to invest in new product offerings. By adding new products to your inventory, you could significantly increase your sales. 
  • Purchase in bulk. Placing large purchase orders can be expensive. A retail inventory loan can offer you the funds you need to make sure your shelves and warehouses are fully stocked with important items. By having working capital available, you can buy in bulk and save money. This saving can be used to buy more stocks.
  • Meet seasonal demands. If you operate a seasonal business, you can use an inventory loan to buy products during slower times of the year. For example, if you sell swimsuits and pool suppliers in states that experience cold winter, you will experience a drop in sales during the winter. But, you can prepare for the spring and summer if you have cash available to purchase inventory. 
  • Operate your business as usual. Usually, you will have to reduce costs from other areas of your business to buy inventory. Fortunately, an inventory loan can offer you the upfront financing you need to purchase products without affecting your business operation.