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.