The best way to grow a business is by having enough finances on hand. Learn how to help your business grow with the best type of inventory financing.
You’ve got the perfect idea for a business. You know you’ll offer things people want and you’ve got great customer service and business management skills too.
So how do you get going with your new business? You’re probably going to need some funds, especially if your business requires an active inventory.
Luckily, inventory financing is available for small business owners! You’ve just got to find out which financing option is best for you.
To get you started on the right foot, here are five inventory line of credit loans. Keep reading to learn all about them!
Why an Inventory Line of Credit?
An inventory line of credit gets you the funds you need when you need them. It provides funds specifically for building or creating your inventory, which lets you spend your business funds on other things.
If you’re approved for an inventory line of credit, you’ll have access to large sums of money, but you’ll still have things like interest to consider. Make sure you find a line of credit that offers terms you’re comfortable with, including term lengths and interest rates.
The greatest thing about lines of credit is flexibility. You’ll have the funds you need whenever you need them without reapplying for loans.
Now that you know the benefits of this type of financing, here are five inventory lines of credit for you to consider.
Dealstruck offers a line of credit to help you with your inventory needs. With this line of credit, you’ll have a limit of $150,000, so this is a great option if you’re worried you’ll end up spending too much.
One big benefit of this line of credit is that it comes with up to eight weeks of paying only interest. That way, you won’t have to worry about paying full payments at the beginning. Instead, you can focus on getting other aspects of your business up and running.
This line of credit offers flexibility, allowing you to get what you need when you need it, all on a weekly payment schedule.
There are some minimum requirements you’ll have to meet in order to qualify for this line of credit. You’ll need a credit score of over 600 and your business needs to be one year old with a $150,000 annual revenue.
If you haven’t been in business for an entire year yet, BlueVine’s line of credit is a good option. To get this loan you’ll need six months of business history.
Use anywhere from $5,000 to $250,000 with this line of credit to cover all your inventory needs.
BlueVine provides you with set payments that you’ll pay either monthly or weekly. You’ll also have a set term length.
When it comes to term lengths you have options here as well. Choose from either 6 or 12 months to pay the money back.
All the details and ongoing information for your line of credit can be seen on your hand dashboard, easily accessible due to its being online. You’ll know exactly where everything stands, and you’ll be able to move funds quickly.
3. Street Shares
The Street Shares line of credit offers the same dollar amounts as your BlueVine option, but it offers more flexibility when it comes to loan terms.
If you’re looking for a short-term loan, pay the line of credit off in only three months. If you need more time, choose up to 36 months of payback time.
You’ll also see more flexibility when it comes to APR. Make sure you discuss your options when applying for a line of credit with Street Shares to make sure you get the best terms for you and your business.
4. Headway Capital
If you’re only looking to finance a smaller amount of funds, Headway Capital may be the right choice. They offer inventory lines of credit from $5,000 to $100,000.
Like the other companies in this list, Headway Capital offers flexibility when it comes to loan terms. You can pay weekly or monthly, and there are three term lengths for you to choose from.
Choose a longer term length if you think it will take longer for your inventory to sell. If it sells quicker though, no problem! You won’t get hit with any fees if you pay your loan off early.
Getting funds when you need it is simple, thanks to their online account and approval within one business day.
5. Crossroads Financial
The total opposite of the last option in terms of money amounts, Crossroads Financial is a great option for businesses looking to get a very sizable line of credit for their inventory. Their revolving lines of credit exceed $5 million, though $500,000 is available too.
If your business doesn’t currently need an inventory loan of that size, you still may want to keep this option on the back burner. As your business expands, you may just find yourself in that bracket of needing a large number of funds.
The line of credit offered by Crossroads Financial can be used for any type of inventory and 70% of the cost of that inventory is advanced to the business owner. You’ll get the flexibility your company needs, so you may want to keep Crossroads Financial in mind.
The Line of Credit: A Great Inventory Financing Option
As a business owner, you want to see your business succeed. It’s hard for success to come if you aren’t able to put items on the shelves, whether those shelves are physical or digital.
Inventory financing may be required in order for you to get on your feet or to get things going better than they are now. Luckily, an inventory line of credit is perfect for building up your inventory and keeping it alive and well.
We offer lines of credit that will help you achieve your business goals. Apply today to get the ball rolling!