Inventory Finance

What is Inventory Finance?

Inventory Finance is a type of trade finance, where the underlying goods, that are being bought and sold, are kept as the underlying security to secure the finance.

Often lenders require the finished goods to be kept in a third party warehouse or other secure location. The inventory can then be used by the business as collateral. A lender will provide short term working capital or loans against the collateral (minus a percentage of its value). 

Warehouse or inventory financing is often used to top-up existing credit lines.