Inventory Loans

Inventory Loans Business Planning from The Startup Garage
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Inventory loans, sometimes referred to as “flooring”, uses current inventory on hand as collateral to secure funding.  These loans often have better interest rates than other funding options because they are collateralized and provide the lending agency a more secure position.  These types of loans are useful for distributors and retailers that need inventory on hand for immediate sales and need more than 30 day terms to pay for the product.  Inventory loans allow businesses to increase their inventory, or take out a loan based on current inventory numbers.

Inventory loans are a good short-term funding source for growing businesses that maintain ready to sell inventory and aren’t able to secure traditional funding from their bank. Term lengths are typically one year or less, so a business must have regular turn-over of inventory in order to repay the loan on time.  This type of loan is not recommended for companies expecting to hold inventory for longer durations. 


Whether you have a question about Inventory Loans, or you’d like to discuss our business plan writing services, feel free to contact us for a free consultation!
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About Tyler Jensen

I work with entrepreneurs who are looking to attract investment and get out of the "Garage". I am passionate about helping entrepreneurs start companies that matter. I helped launch over 100 Companies, Non-Profits and Social Enterprises. I consider myself a serial entrepreneur, startup coach & trusted advisor. * Launching New Companies (For Profit, Non-Profit and Social Enterprise) * Expert Business Plan Writer * Extensive Network of Business Relationships focused on Launch & Rapid Growth of New Companies * Startup, Growth, Marketing, Technology, Web, Business Systems * Trusted Advisor to CEO’s & Entrepreneurs * Capital Raising Strategy Development * Startup Team Development The first company I started and sold is VAVi Sport & Social Club which grew to over 25,000 members in six years, was recognized as San Diego’s 30th fastest growing private company in 2006 by the San Diego Business Journal and 32nd fastest in 2007, and sold for over 25X the capital investment.