If demand spikes for something your business provides, do you have the working capital to keep it stocked? That’s essentially what an inventory loan enables. Whether it’s acquiring more inventory, or the materials to create it yourself, an inventory loan can help you meet the demands of your customers.
If your business operates in an industry with seasonal business cycles, an inventory loan can help you prepare for the peak. Running out of inventory at the busiest time of year for your business could result in long-lasting damage to your bottom line. An inventory loan could help you enter the busy season prepared for the increased demand.
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 generally has a shorter overall term with no collateral requirements. It’s important to maximize your working capital as the market changes and new products become available. Unsecured inventory loans acquired through SnapCap are designed with this in mind, usually ranging from 6 to 18 month terms.
Working Capital Loans
A working capital loan is used to finance a company's daily operations.