Inventory: Your Products Are More Than Just Potential Sales

November 16, 2017 by CNH Finance, LP in category “Financing”

Inventory is a standard part of products-based businesses. The ability to meet customer demands without having to produce items on the spot helps to drive sales and generate revenue. What many business owners overlook, however, is that inventory can do much more than sit on a shelf waiting for a sale. Inventory can be used to create a renewable source of working capital for businesses, to sidestep the need for loans.

The True Value Of Your Inventory

Your inventory obviously has a value, otherwise it would not have a price tag. Yet for many businesses, inventory only takes up space until a sale is made, and then it is replaced by an identical item. The value of your inventory can be used as part of an asset based financing strategy. Asset based financing uses the value your inventory, in conjunction with receivables, equipment, and more to create a revolving business line of credit. The line of credit has no stipulations, and can be used for making purchases of any kind, acquisitions, meeting various financial obligations, or anything else your business needs. Instead of leaving products in the stockroom or warehouse, business owners can tap into the value of those items to create a source of working capital.

Avoiding The Need For Loans

Asset based lending is not a debt structure. Asset based lending works the same as any revolving business line of credit, without the need to go through a bank or similar credit provider. Additionally, asset based lending does not compromise credit rating or place debt on the books. With a renewable source of working capital, businesses only access what they need, as they need it. The spending limits are also typically higher than regular business lines of credit. Asset based lending provides a debt-free source of working capital which allows entrepreneurs to avoid the need for loans, and ultimately avoid taking on unnecessary debt.

Financing That Grows With Your Opertations

As your business grows, and sees an increase in sales, inventory, and even equipment and facilities, asset based lending also increases. The more assets your business owns, the higher the spending limit on your asset based line of credit.

At CNH Finance, we specialize in tapping into the hidden value of inventory and other assets to provide the most comprehensive asset based lending program, nationwide. Contact our offices today to learn more.

Image for 'Healthcare Mergers: Making a Smooth Transition'
Healthcare Mergers: Making a Smooth Transition

Mergers and acquisitions in the healthcare industry are not uncommon. In many cases, healthcare mergers provide wider coverage and quality services to a larger population in need of…

Image for 'Bethesda Freight Carriers Stay Competitive without Loans'
Bethesda Freight Carriers Stay Competitive without Loans

From medical supply distributors to groceries, the East Coast relies on Bethesda freight carriers to deliver shipments. Bethesda, MD is home to one of the major hubs for freight carriers.…

Image for 'Seasonal Businesses Are Preparing For The Summer Rush'
Seasonal Businesses Are Preparing For The Summer Rush

As we leave April, many seasonal businesses are gearing up for summer sales. From resorts to restaurants, fairgrounds, food trucks, and more, seasonal businesses are putting together…

Image for 'Asset Based Financing FAQs For Entrepreneurs'
Asset Based Financing FAQs For Entrepreneurs

At CNH Finance, we frequently see questions from business owners asking about the finer points of asset based financing. Even when we read financial news sites, questions about asset…

CNH Finance
24 East Ave #1285
New Canaan, CT 06840
Phone: (203) 266-3210

Business Development
Long Beach, CA 90803
Phone: (562) 833-7815

Business Development
3334 E. Coast Hwy, Suite 541
Newport Beach, CA 92625
Phone: (714) 520-1788

Melinda Ficek
mficek@cnhfinance.com

Maryland Office
3 Bethesda Metro Center, Suite 723
Bethesda, MD 20814
Phone: (301) 529-9993

Steve Silver
ssilver@cnhfinance.com

Business Development
5050 Quorum Drive, Suite 700
Dallas, TX 75254
Phone: (972) 687-9157

Rossi Felix
rfelix@cnhfinance.com