Smart Strategies for Inventory Financing

Leveraging Existing Inventory

Once you have inventory that's selling well, it becomes a valuable asset for securing additional funding.

• Lenders can provide capital based on a percentage of your inventory cost. Typically, this ranges from 40% to 50% of inventory value.

• These lines of credit allow you to borrow only what you need when needed, minimizing interest costs.

• As your inventory levels fluctuate, so does your available credit, aligning financing with your business cycles.

The Amazon Challenge

Traditional inventory financing for businesses primarily selling through Amazon can be tricky due to Amazon's policies. However, alternatives exist:

1. Amazon Lending: Utilize Amazon's lending program, which is tailored for sellers on their platform.

2. Marketplace Financing: Options like revenue-based financing can provide capital based on your sales performance rather than inventory value.

3. E-commerce Financing: Use financing based on your online sales to free up cash for inventory purchases.

4. Focus on Profitability: Aim for profitable customer relationships, reducing reliance on external funding.

At Holdings, we're committed to helping you navigate these choices and find the optimal funding strategy for your unique needs.