Turning Your Inventory into a Renewable Source of Funding

November 29, 2018 by CNH Finance, LP in category “Financing”

Manufacturers, retailer, pharmacies, import/export companies and more have sizable inventories. After all, selling those products is what generates revenue and boosts cash flow. However, relying on sales doesn’t always satisfy the need for working capital, especially when internal costs need to be met and growth plans are on the table. Instead of taking out loans and racking up debt, businesses owners are using their inventory to create a renewable source of funding for both working capital and growth.

Your Inventory is an Asset

Inventory is considered an asset because it is owned by your business. This could be anything ranging from lumber to manufactured goods to antiques, foodstuffs, pharmaceuticals, or anything in between. Obviously, your inventory has an inherent value, which is why it can be sold to customers. But your inventory can do much more than sit on a shelf or in a warehouse. You can unlock the inherent value of your products to create a revolving line of credit.

Leveraging Inventory and Other Assets

Asset based lines of credit are structured around the value of your inventory, along with other assets such as equipment, vehicles, receivables, and more. This revolving line of credit doesn’t place any debt on the books and can be used for anything from small purchases and meeting financial obligations to funding larger projects. As capital is used and the balance is repaid, the amount of financing available is replenished, giving your business a perpetual source of funding.

Designed for Growth

Asset based lines of credit are designed to help businesses achieve growth without relying on traditional loans. As sales increase, as new equipment is obtained, as inventory grows, so does the amount available through the asset based line of credit. This gives businesses across all industries a financial advantage without placing debt on the balance sheet.

At CNH Finance, we specialize in asset based lines of credit. Our team will perform an in-depth analysis of your inventory and other assets to ensure you get the best financing. To learn more about how your inventory can become a renewable source of working capital, contact the experts at CNH Finance today.

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