Deciding if Inventory Financing is Right for your Business

Financing is one of the toughest aspects to owning a small business. Many small businesses get their financing from investors, bank loans, and/or credit cards, these can actually negatively impact your credit score. If your company has a longer sales cycle, your business may encounter cash flow problems that will make it difficult to make monthly payments with these types of loans.

One option that may work for your business and revenue model is Ace Biz Funding’ inventory financing. Inventory financing allows you to use your business’ biggest investment, your inventory, as leverage as collateral against a loan. Businesses choose to use inventory financing during periods of the year when they need to increase inventory, since it gives them extra money and inventory to meet demands.

Ace Biz Funding knows that with any business decision that involves money, you need to carefully weigh the pros and cons of inventory financing.

Pros:

  • It doesn’t count on your credit
  • Decisions for inventory financing are made fastly
  • Inventory financing has low barriers for entry; it is a fairly low-risk proposition for the borrower
  • Ace Biz Funding offers inventory financing on in transit inventory

Cons:

  • Many lending agencies consider inventory financing to be a high-risk investment
  • You have to keep in contact with your lender regularly
  • Floating interest rates can be variable and cause borrowers to pay more in fees which does not get applied to the loan’s balance

Finding funding for your business can be a challenge, but Ace Biz Funding has a variety of funding options. If you need help getting funds for your business visit Ace Biz Funding online today and get cash fast!