4 Signs It’s Time to Use an Inventory Financing Loan to Grow Your Business

Committing to the decision to take out an Inventory Financing Loan from Ace Biz Funding can be a difficult and stressful decision. No matter what kind of deal, APR, or lender that you choose to borrow from you will always have the outstanding debt that you are responsible for paying back weighing on your mind until you repay it. Unnecessary Inventory financing loans can add anxiety to your life, you will need to factor interest rates into your budget as well. The other thing to keep in mind is that when you small business need an inventory financing loan and you do not get one out of fear the results could be disastrous.

There is a lot of information circulating inventory financing loan options, but not a whole lot of advice. It may be difficult to determine when your business needs an inventory financing loan. Ace Biz Funding, an independent supplier of inventory financing loans, wants to help you read the signs for when it is the right time for you to take out an inventory financing loan for your business.

1. Increased working capital.

You are having issues with equipment of inventory, and you are not a seasonal business and you are feeling strapped for cash flow. Working capital is cash consumption for your businesses day-to-day operations that doesn’t necessarily translate to profits or losses.  If your business experiences a soft month or have a credit customer who is slow to pay you may want to consider taking out an inventory financing loan.

2. Emergencies.

This is the most obvious sign of when you should take out an inventory financing loan. When something goes horribly and unpredictably wrong and you need to fix it fast. If something happens and you initial reaction is “How am I going to pay for this?” an inventory financing loan may be the best option for you. Ace Biz Funding approves you fastly and offers working capital that same day.

3. Need to build business credit.

Building up business credit can be a long and excruciatingly slow process. No personal owner wants to use their own credit score to secure business credit so what do you do until your business has reported payment history to the credit bureaus? You will need to start building business credit history. One of the best ways to accomplish this is to take out an inventory financing loan to build business credit.

4. Expand your business.

If you have plans to grow your business by opening new locations, start a large marketing campaign, increase your inventory, hire new employees and you’re feeling financially secure but want to take it to the next level then you should be looking into an inventory financing loan to grow your business. Taking out a loan to improve or diversify your operations is always a great idea as long as the funds you receive from your new growth outweigh the payments owed on your inventory financing loan, then you’re in the clear.