Inventory Financing

As any business owner who manages inventory will tell you, it can be much more complicated than taking items off of the shelves and selling them to customers. The central issue is that inventory is purchased with cash from your business, either up front or over a period of time. This means that as inventory sits on the shelves waiting to be sold, the business’s cash is tied up and not working in other ways for the business. Most small and medium-size businesses are constantly watching their cash flow and often don’t have the luxury of tying up their cash in inventory. They need to keep their capital reserves and business lines of credit available for other things.

But there are sound business reasons for purchasing large amounts of inventory, like stocking up during an off-season. Getting inventory financing means you won’t have to tie up your cash to do it. With inventory loans from BFS Capital, you won’t have to worry about having enough money to cover your inventory. Unlike other inventory financing lenders, our inventory funding solutions are truly designed with the business owner in mind. We are happy to offer flexible repayment options and a fast application process.

Inventory Financing as a Multipurpose Solution

Getting a small business loan or business cash advance to purchase inventory makes good sense for all kinds of businesses in a variety of situations. Our inventory finance options are a great way to fund your inventory needs without breaking the bank. A few of the most common uses for inventory business loans include:

  • Seasonal: Many businesses have peak months of the year when they make most of their income. But the cash generated during this time may not stretch through off-season months, even though this is the best time to buy your inventory for next year.

  • Pre-holiday or special event: While retail businesses generally don’t want excess inventory sitting around, in the months leading up to the holidays or back-to-school shopping, having more inventory than usual can translate into more sales. In this situation, inventory loans are useful to allow business owners to purchase large quantities of items.

  • New product roll-out: If you’re offering a hot new product that research tells you is going to be a hit, you need to have plenty of inventory on hand to meet the demand.

  • Competitive move: Being the first to have a new product or offering something better can trump the competition and generate some impressive sales at the same time. But you’ve got to act quickly: Where will you get the cash?

Use Business Inventory Loans to Purchase at Lower Costs

Generating more sales and leveraging a competitive challenge are excellent reasons for purchasing inventory in larger quantities at different times than you normally would. But there are other advantages to business inventory loans. Inventory financing frees you from the constraints of your business’s cash flow, allowing you to make the most efficient and cost-effective inventory purchasing decisions.

  • Purchasing volume discounts: Vendors are usually happy to offer discounts when you purchase inventory in large volumes.

  • Off-season discounts: Taking inventory off your vendors’ hands in off-season months saves them money, too. Often, they’ll pass that savings on to your business.

  • Time-sensitive opportunities: Business owners are sometimes presented with unannounced promotions or even vendor liquidation sales. If you have an opportunity to purchase inventory for pennies on the dollar from a vendor that is going out of business, then it’s in your best interest to act quickly to do so.

  • More favorable terms: Paying upfront, instead of over time, is a huge boost to your vendors’ cash flow and reduces their carrying costs. It also puts you in a strong position to negotiate the best terms for your business rather than having to accept the terms handed to you.

Getting a short-term business loan to finance your inventory purchases can be a very profitable business decision. With a loan from BFS Capital, you can easily finance inventory without worrying about tying up your capital or business credit. Unlike other inventory financing lenders, BFS Capital is looking our for the best interests of small business owners. Contact us online or give us a call today to apply and see if you qualify for one of our loans.