What are Inventory Business Loans?
Whether you are a retailer or wholesaler you can use an inventory loan to grow your business. In most cases, inventory business loans are short term business lines or revolving lines of credit used for purchasing inventory. However, most companies try to find the lowest cost inventory financing solution that offers ideal repayment terms for their situation. As demand for inventory financing increases, so do the available options. If you use a term business loan you should receive funds in a lump sum with a monthly repayment over a specified term. If you use a business line of credit you should have access to a certain amount of money whenever you need it. However, you should only pay interest on the amount of money you use. Businesses that sell a physical product or products with over $150,000 in sales should seriously consider Kickfurther for inventory financing. Kickfurther takes a unique approach to crowdfunding that allows business owners to secure inventory financing and pay back loans as inventory sells. While this may be your first time hearing about Kickfurther, they have funded over 800 deals with a 99.5% success rate. Keep reading to learn more about inventory business loans.
How do inventory loans benefit businesses?
If you are looking for an inventory loan you are most likely determined to grow your business and increase revenue. Inventory loans can benefit your business and your customers. However, we all know there are pros and cons that come along with most business decisions. Before committing to an inventory loan you should compare the pros and cons and do plenty of research so that you can make an educated business decision. Here is a short list of some of the benefits inventory loans can offer. . .
- Increase revenue
- Attract more customers
- Improve customer retention
- Expand customer selection
- Smoother daily operations
- Avoid running out of inventory
- Deliver better customer service
- Competitive advantage
Why do I need an inventory loan?
If you are having troubles keeping up with customer demand or having cash flow problems you should consider an inventory loan. Making sure you have enough inventory on hand, especially during seasonal changes, can be difficult. Many businesses are unable to pay cash for inventory, business expenses, payroll, and all the other expenses that add up. Most businesses that have inventory use inventory loans or business financing. Many businesses use a combination of financing to support their business while it grows. Inventory financing may be simpler to manage than other types of business loans. Companies should calculate the actual cost of the inventory loan to decide what they need to sell products for to remain profitable. Inventory loans can help business operations run smoother while expanding customer selection and increasing revenue.
What types of businesses can benefit from an inventory loan?
There are a variety of businesses that can benefit from inventory loans. While retail stores, online sellers, and wholesalers are the primary borrowers there are other business models that can use inventory loans. For example, many service based businesses such as nail salons, pet grooming salons, car repair shops, and more can carry inventory to generate more revenue. As long as you have proven sales and sell physical products you may qualify for an inventory loan. Let’s take a look at some examples of businesses that may require inventory loans. . .
Retail stores:
Retail stores can include a large umbrella of different types of businesses ranging from large department stores to specialized stores. Department stores typically carry clothing, jewelry, makeup, shoes, houseware, decor, beauty products, and more. Specialty stores typically carry less products and are more focused on certain niches such as toys, sports equipment, shoes, and more. No matter how many products a retail store offers they usually need an inventory loan or loans.
Wholesalers:
Wholesales use a different business model compared to most retail stores. Most wholesalers focus on buying large quantities of product at a lower price. Wholesalers can then sell inventory in bulk to retailers. Wholesales usually need inventory financing in order to store such high volume of inventory. In addition, wholesalers need plenty of warehouse space to store inventory.
Online Retailers:
Whether you sell your product at a store front or online only, you can use an inventory loan. Our current economy is seeing a huge increase in online only retailers that need inventory financing. Online sellers that sell products using platforms such as Amazon should consider using Kickfurther for inventory financing.
Can you get an inventory business loan with bad credit?
If you have bad credit it may be challenging to qualify for an inventory loan. However, we encourage you to put in the extra work because it’s not impossible to qualify for an inventory loan with bad credit. If you have bad credit you should apply with a co-signer or co-owner that has better credit. If you do not have a co-signer you should try to provide a down payment or asset as collateral to reduce the risk for the lender or individual. Bad credit borrowers may want to start with smaller personal loans to help bring their credit score up.
What do you need to apply for an inventory business loan?
Regardless of what type of inventory loan you apply for, you should be prepared before applying. Most lenders or individuals loaning money will want to see proof that you are a legal business, bank statements, a business plan, profit and loss statement, tax returns, inventory list, projected sales, and in some cases an executive statement. Gathering this type of information beforehand can increase your chance of approval. In addition, it helps you submit a more accurate initial application. Whether you plan to apply with a bank, online lender, or company like Kickfurther you’ll most likely need to start with an application. In some cases, you may be requested to submit certain documents during the application process. In addition, most lenders will require more documents to be submitted post-application. If you have narrowed down the lender you want to use you can ask them specifically what documents you should have prepared. If you want to give Kickfurther a try, you can visit our website and complete a simple form. The form starts with basic information such as contact information, warehouse type, ownership, and annual revenue. After completing this form businesses can receive an estimate of funding potential. Here are 4 easy steps to using Kickfurther for inventory financing…
#1. Create your online account
#2. Get funded within minutes to hours
#3. Customize your payment schedule
#4. Complete and repeat
How do inventory loans benefit small businesses?
Running a business can be full of surprises such as seasonal sales slumps, inventory breakdowns, late invoice payments, and more. While larger businesses may have more capital to deal with surprises, small businesses may not. Finding affordable inventory financing solutions can help small businesses free up cash while increasing sales. All businesses have to start somewhere so if you own a small business that you dream of expanding, an inventory loan can help you achieve growth goals. If you are a small business owner under the impression that you cannot get inventory financing, you are wrong. There are many programs designed to help small businesses secure inventory and business financing. Small businesses may need unique terms in order to make sense of an inventory loan. Kickfurther is a top-rated site for small businesses to secure inventory financing with terms that work for their business. In fact, the terms are actually created by the business owner. Kickfurther allows business owners to create favorable terms and request a certain inventory loan amount. The pitch is then shared with multiple individual investors and real people that can decide to approve the request.
Conclusion
In conclusion, small and well established businesses should apply for an inventory loan through Kickfurther. Kickfurther innovates a unique approach to crowdfunding that allows companies to give people the chance to buy inventory on consignment. Depending on your expected cash flow, you can set the repayment schedule between 2-10 months.
Kickfurther supporters are repaid in full plus dividends. Companies can secure inventory loans between $50,000 to $500,000 in as little as 1-hour using Kickfurther. Business inventory loans can help your business overcome challenges and achieve growth goals. As a business owner and entrepreneur you have most likely invested many hours of time into solving problems. You may even feel as if some of your best ideas have come from solving problems. When we can truly relate to a problem and experience it firsthand we have the opportunity to create an effective solution. For this reason, Kickfurther is a company that was created by a business owner trying to overcome challenges, just like yourself. After struggling to finance inventory for a business and only finding expensive options, the seed for Kickfurther was planted.
Originally launched in 2015, Kickfurther offers business owners a platform that allows them to raise money to purchase inventory. Kickfurther’s unique approach to crowdfunding can deliver fast funding up to $2M and flexible terms.
Compared to other financing options, Kickfurther is up to 30% cheaper. Kickfurther allows business owners to pay back loans as inventory sells. Most companies that have used Kickfurthers platform have proven its success and flourished from its support.
Every business deserves to take advantage of every opportunity. Kickfurther can help your business access the working capital it needs to take advantage of opportunities. Kickfurther has been praised by experts for their creative funding model that has helped business grow and survive tough economic times.
