Inventory Financing

 There are two main types of inventory financing: an inventory loan and an inventory line of credit. While both types of inventory financing are secured by leveraging your inventory as collateral, these two loan types mean different things for the future of your business financing 

•  An inventory financing loan is simply a loan based on the value of your inventory. Just like a regular small business loan, an inventory loan is for a set amount that is paid back in monthly payments over a fixed repayment term or in a lump sum following the sale of inventory. 
•  While the funds from a loan can only be used once, an inventory line of credit can provide you with extra money on an ongoing, as-needed basis. Many business owners like having a business line of credit available to them so they’re able to handle any unforeseeable expenses that may come up.