Many businesses experience cycles in their supply and demand, often referred to as the “busy” and “slow” seasons. For example, retail business tends to boom around the end of the year during the holidays, while travel-related businesses boom in the spring and summer. Busy seasons bring in large volumes of capital and customers, but they also require more inventory than what’s typically kept on hand during the rest of the year.
To avoid running out of inventory during peak season, inventory loans allow businesses to attain the supplies they need to keep up with fluctuating periods of demand in their industry. Inventory loans can help a business take advantage of busy seasons so they can survive through the slow seasons.
Short Term Inventory
Some products are available for a limited-time or in limited amounts. This means that some companies will be able to offer them to their customers, while others will not. In order to succeed over competing businesses, it’s imperative to secure your product quickly with access to readily available capital at short notice.
Similarly, some businesses in certain industries need to acquire a product that has a short shelf life. These products will need to be acquired, shipped and sold within a short time frame. Inventory loans are designed to cover these situations so businesses don’t miss out on short-term opportunities. They provide the necessary flexibility to keep up with competitors and maintain an edge on emerging trends.
Unsecured Loans to Finance Additional Supply
Contrary to a traditional bank loan that secures your product as collateral, an unsecured inventory loan with SnapCap will have a shorter overall term with no collateral requirements. It’s important to maximize your working capital because the market is always changing and new and improved products are created every year. Unsecured inventory loans with SnapCap are designed with this in mind, ranging from 6 to 18 months.
Learn more about the four unique loan types