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Inventory Loans

There’s a better way to fund your business

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Is an inventory loan right for my business?

If you manage products and maintain a large inventory, having cash at hand is a must. Meeting the demand of your customers is vital to your profitability and business reputation. Running a business can put you in a position where you must make a purchase that is only offered for a limited time or has a short shelf life, requiring you to come up with an immediate capital solution. Aside from this, seasonal shifts in sales and supply volumes can take a toll on the working capital of a business. This can create a greater demand for more inventory than usual, which is why an inventory loan would be valuable to your business.

Seasonal Inventory

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 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 a loan that is taken to finance a company's everyday operations.
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Inventory Loans
If you manage products and maintain a large inventory, having cash at hand is a must.
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Expansion Loans
Financial growth and internal business expansion go hand and hand.
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Equipment Loans
An equipment loan can be used to purchase new or used equipment.
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Get pre-qualified for up to $1M

Searching for financing is free and won’t affect your credit score