Inventory loans can help fund operations. In its simplest form, a borrower’s inventory can be segregated into three types: raw materials, work-in-process (WIP), and finished goods; all owned (e.g. title has passed) by the borrower and located on the borrower’s premises. From a collateral perspective, ownership and location are of prime importance.
Investor Exchange and the Inventory Loan Process
Inventory loans are an accepted and essential part of business funding in the modern marketplace. These longer-term operational loans function as a line of credit for your business in meeting its everyday obligations while waiting to be paid for the goods and services you provide to your customers. The innovative Investor Exchange system at CNF Exchange is designed to help you find the most beneficial inventory loans at the best possible terms. Our exclusive network of lenders allows you to comparison shop for inventory loans and to take advantage of our Investor Exchange system. You pay only when you find the right offer for your needs. This ensures that you get great rates and outstanding service from our CNF Exchange team. Free up cash flow, obtain funds for a business investment or manage the shortfall between delivery and payment on invoice; the CNF Exchange network of lenders can make it easy and convenient to get the funding you need for any business need.
By using the available equity in inventory already on hand, businesses can more effectively manage their financial obligations and create a solid foundation for future growth and progress. Inventory may consist of raw materials awaiting processing, finished products ready for sale or delivery and orders not yet shipped to distributors and retailers. Any of these items of value can be used as collateral for inventory lending purposes and may provide security for funding arrangements to manage short-term funding needs. Inventory lenders typically do not make long-term loans due to the nature of this lending practice; inventory is usually sold in a short amount of time, and the inventory loan is paid off with the proceeds of that sale.
CNF Exchange can help businesses identify the inventory lender and loan arrangement most beneficial to their needs. By submitting a free loan application online through the CNF Lender Exchange interface, companies can often reach a larger number of inventory lenders interested in providing short-term financing for their operations. This added funding can be used to promote the business, to manage short-term cash flow difficulties or to fund ongoing materials purchases on a rolling or one-time basis. Small businesses can compare various funding offers and decide on the most advantageous arrangement for their needs. The innovative and intuitive CNF Exchange online platform makes it easy to manage these financial arrangements quickly and easily, allowing business owners to concentrate on their core business strategies and activities to maximize profit for their small business concern.