Inventory Financing

RETAIL INVENTORY FINANCING

What It is:
Inventory financing is a form of asset-based lending that allows businesses to use inventory as collateral to obtain a revolving line of credit. Retailers must keep the shelves stocked and therefore have a lot of money tied up in inventory. An inventory revolving line of credit helps companies free up cash tied up in their inventory.

Who should use this:

  • Small to medium size retailers who can’t secure financing from a traditional source.
  • Rapidly expanding companies who need an aggressive inventory advance in order to support the growth of the business.
  • Retailers in a turnaround state, where Crossroads can provide a bridge financing solution until the company is able to get back to a bank type relationship.

Benefits:

  • Keeping the shelves stocked
  • Keeping payables current
  • Help improve cash flow for seasonal businesses

Who should use this:
Small to medium sized businesses that might not have the capacity or credit to fill a larger-than-usual order. This type of financing agreement allows companies to be able to take advantage of larger orders – such as one from a big box retailer like Wal-Mart, without having to tie up too much capital, or capital they do not have.

COMMERCIAL INVENTORY FINANCING

What It is:
Inventory financing is a form of asset-based lending that allows businesses to use inventory as collateral to obtain a revolving line of credit. Commercial businesses must often maintain large levels of inventory in their warehouse or manufacturing facility. Crossroads provides stand-alone inventory revolvers and partners with receivable lenders and factors in order to provide a full financing facility for its clients.

Who should use this:

  • Manufacturers, wholesalers and distributors who have money tied up in their inventory.
  • Companies who have an AR or factoring facility, but are looking for additional capital leveraged by inventory.
  • Companies with seasonal build ups of inventory where AR to inventory ratios make impact ability to fully leverage their collateral.
  • Businesses in a turnaround state or newer companies not able to qualify for a traditional source of financing.