types of loans / Unsecured Small Business Loans /
Inventory Loan (Financing)
Inventory loans provide an infusion of working capital during peak seasons and position small businesses to deliver superior customer service.
This article contains general information and is not intended to provide information that is specific to American Express, or its products and services. Similar products and services offered by different companies will have different features and you should always read about product details before acquiring any financial product.
What is an inventory loan?
Having the resources to keep the right amount of inventory on hand is crucial to keeping your business going. Often you will need additional working capital during slow months or to ramp up inventory for a peak season. Inventory loans, or inventory financing, are designed to provide small business owners the working capital to purchase additional inventory needed to succeed.
Inventory lines of credit can help your small business by delivering funding up front to ensure you have sufficient working capital to buy in bulk, prepare for a peak season or take advantage of favorable pricing.
Is an inventory loan right for my business?
Inventory loans are designed primarily for existing businesses in retail or product-oriented sectors. These businesses can look to this type of small business loan to get the additional stock needed to prepare for a busy season when you know you will be able to pay off your loan quickly once the products are sold.
An inventory loan is likely a good fit for your business if you need to keep a much larger inventory on hand in warehouses and larger storage facilities. Larger wholesale retailers without a lot of cash on hand to replenish their supply may have the next few months of orders in a warehouse, but they do not have additional inventory to fulfill upcoming future orders.
How can I get an inventory loan for my business?
If you have a strong sales record but are tight on working capital, it can be very difficult to establish a line of credit with a traditional lender. Online lenders like American Express Business Blueprint Funding™ are stepping up to offer small businesses a solution to cash flow issues.
You can draw from your line as often as you want and pay fees only on the working capital you take.
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