When a business encounters some cash flow problems, it faces the possibility that it may not be able to adequately restock its inventory. As you may know, this can lead to driving away customers. You will have to make some critical decisions at this point. Do you selectively turn down job orders or find some way to get the funding to restock? We can offer you our inventory financing services to help you resolve such situations.
Financing to Maintain Operations
One of the more common causes that may deplete a business’ cash reserves is staggered payment arrangements with its customers. This is common practice as it can be useful in attracting new patrons or maintaining existing ones. However the disadvantage is that it could lead to a spiral where you need to keep pulling out your reserves just to fulfill orders. You could eventually run out of resources and come to a temporary stop when your inventory also gets depleted. You might have to wait for most of your receivables to come in before you can get your operations back to its normal flow.
Sometimes these cycles can’t be avoided and this is where financial support mechanisms like inventory financing can be most helpful. This type of financing provides you with the necessary working capital to purchase much needed inventory.
Financing that Avoids More Debt
The difference of this method of financing with other loan products or lending options is that the inventory itself serves as the collateral. This means that restocking your inventory doesn’t have to involve cutting in to existing bank loans or lines of credit. Since we follow a separate set of criteria than typical banking channels, we can approve and complete the process much faster. Sometimes delaying a job and turning it down means the same thing for the customer.
Rest assured that we have the funding capability and years of experience and expertise to help you solve such cash flow and inventory problems. With our financial support and capital loans advisors, you don’t ever have to be forced to turn down a job order or miss another lucrative business opportunity.