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Inventory Finance

Optimise business growth and take advantage of seasonal trends with short-term inventory financing.
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    What is Inventory Finance?

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    Inventory finance is specific to funding a company’s purchasing capacity to purchase supplies it can sell at a later date. The products can then serve as collateral for the loan. Clients who seek inventory finance are looking for a short-term loan or a revolving line of credit that enables immediate supply to restock.

    Inventory finance is unique because real estate security is typically not required, and the stock does not have to be immediately sold. Inventory finance will only require your supplies to be pre-sold, invoiced, or delivered to your customers before being approved for financing. We at Intellichoice source a range of custom stock finance solutions. Our team supports business expansion, and we are here to support SMEs to hold more stock without straining the capital.

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    Benefits of Inventory Finance

    Mid-sized retailers and wholesalers who may be unable to purchase stock with their capital can apply for this type of financing. Some businesses lack the financial history to secure the financing level that giant corporations can access, for instance, what Woolworths and Coles have.

    Here are instances when you should consider inventory finance:

    Inventory finance alleviates the common issue that private companies experience when growing operations. This loan product raises money that can be used for general business expenses. Our loan specialists at Intellichoice can help you get through the process step-by-step. We access top lenders to support your business endeavors. Our finance specialists can assist you if you are running a private company and need to negotiate a large order to fulfill customer demands.

    Let us streamline your inventory financing

    • Build your inventory.
      Inventory finance enables your company to be ready for the supplies and raw materials. Medium-scale businesses sometimes operate under seasonal demands. Holiday stocks or agricultural products sold ahead of planting season require proper timing and expenditures long before sales are possible.
    • Collateral-free loan.
      Inventory finance allows the company to focus on growth without using the existing property as collateral. Inventory finance can still inject cash flow for stocks even without collateral if your business does not own property or is already borrowing against assets.
    • Access working capital.
      Vendors who sell high-value machinery (e.g., car dealerships, farming equipment) can rely on inventory finance to purchase stock, allowing the cash flow to move into other business operations.
    • Buy the stock with no deposit.
      Lenders allow 100% funding even if the stock isn’t pre-sold.
    • Expand customer base.
      Make the business more reliable and ahead of trends by keeping relevant supplies available. This financing option keeps your business from missing out on profitable sales.
    • Cater to international transactions.
      Inventory finance can also facilitate trade finance for cross-border transactions when there is no invoice to secure the loan. The lender pays the original seller on proof of receipt, and the stock becomes the collateral if the borrower cannot repay the lender.
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    What You Need to Consider in Inventory Finance

    To ensure that your company benefits from this financing option, take note of these considerations:

    Check the timing. Consumer goods may remain unsold when an economy experiences a recession, unemployment increase, or other fluctuations. Businesses should plan for loss provisions, inventory cycles in the industry, and logistical constraints.

    Think about product depreciation. Lenders consider the depreciation rate of products over time. Vendors may not obtain the inventory’s total upfront cost if the lender asks the question of resale value, perishability, and demand.

    Plan for on-time repayments. Because inventory financing is lenient with collateral and business credit, the cost to borrow will generally be high. Some companies may have to pay more on additional charges which puts a strain on the bottom line.

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    Why Partner with Intellichoice

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    Inventory finance can help businesses keep cash flow steady, move the capital elsewhere, update product lines, optimize inventory, and respond to seasonal demands.

    Our finance specialists spend time learning about your business’ performance to address any cash flow bottlenecks stock-wise. Whether you need financing for additional inventory, meeting payroll and other expenses, or you’re planning to invest in growth opportunities, inventory finance can fill the gap.

    If you are ready to level up your business, Intellichoice has a broad range of inventory finance products to take your operations to the next level. We are certified to assist vendors in determining which loan products work best for their situations

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