Inventory Finance

What is Inventory Finance?

Inventory Finance is a form of trade finance where the goods being traded serve as collateral for securing financing. Often, lenders require that these finished goods be stored in a third-party warehouse or another secure location. This inventory can be utilized by the business as collateral. Lenders offer short term loans or working capital against this collateral, typically providing funds at a rate that is a percentage less than the total value of the inventory.

Warehouse financing is frequently employed to supplement existing credit lines.