Finance Solution

Inventory Lending

Business Finance offer a wide range of complimentary products to be used in conjunction with Invoice Discounting, we want to provide you with greater breadth than invoice finance alone wherever possible because we realise that flexibility is important to you.

Inventory Finance is a revolving credit facility that enables you to raise additional working capital on top of the Invoice Finance facility.

The Way It WorksYou provide us with details your stock holdings on your monthly / weekly listing. We provide you with funding based upon those values.

To arrange an inventory finance facility, we generally need a third party stock valuation to be conducted. For smaller Inventory Finance facilities of £100,000 or less, we do not require any external valuations. We call this an "ID+" facility - i.e. you have Invoice Discounting "plus" additional cash to invest in your business.

Typical Advance Rates for Asset-Based- Lending.

Invoice Finance - confidential / disclosed / Factoring 90%
Inventory Finance - Raw Materials 30%
Inventory Finance - Finished Goods 50% .

The Benefits

Revolving facilities available against Inventory (raw materials and finished goods). 
 
Smooth out cash-flow for seasonal businesses. 
 
"ID +" provides simple, fast additional cash headroom. 
 
Enables you to build in greater flexibility in your growth forecasts. 
 
Works well for businesses in situations varying from turnarounds or CVA, to transactional opportunities - MBOs / MBIs / Mergers etc.  Can also be used in instances where rapid growth is absorbing considerable working capital.

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