If your business holds stock this allows you to release the value tied up in your warehouse or to purchase new stock.
What is stock finance?
Similar to asset finance, this method of finance allows businesses to purchase stock to be sold on or to enable you to raise funds against stock held (and owned) by the business. Businesses that hold large quantities of stock tend to use stock finance instead of having their working capital tied up.
Funders will release a set percentage of the value of your stock – as with other sources of finance, it relies upon many factors, but ultimately boiling down to risk and how easy it would be for them to sell the goods should you not make payment.
How does stock finance work?
We’ve relationships with many stock finance providers, they’ll arrange for one of their team to come out and value your stock. After we’ve all agreed on the value of the stock and the facility has been set up you simply provide the funder with your stock listings (either weekly or monthly) and as your stock moves so does the amount you are able to access does. The more stock you hold, the more finance available.
What are the benefits to stock finance?
- If your business holds lots of stock it can release the value held in your inventory
- Your clients won’t know you’ve got a stock finance facility
- The money released can be used to fund your next working project
- The stock does not need to be pre-sold