Financing Your Inventory

When it comes to small business, one of the most difficult assets to finance is inventory and this is especially true for startup small manufacturers and distributors of goods. At Mango Factors, we understand the critical need for methods to finance inventory and will work closely with our clientele to source the working capital required.

Methods of Inventory Finance

One of the most common methods of financing inventory is through a revolving line of credit established through Asset-Based Lending. Asset-Based Lending provides a method of financing your company's accounts receivable, inventory, and even equipment in one convenient loan package. And unlike traditional lenders who focus entirely on financial statements and credit history, our asset-based lenders focus more on the value of your invoices and goods.

In many cases, Mango Factors can arrange a standalone inventory finance facility that works hand-in-hand with factoring. Such "blended" arrangements are often the perfect solution for smaller businesses with sales of under $100,000 per month.

Requirements for Inventory Finance

While factoring is readily available for even the smallest, early stage companies, financing inventory will require some credit history for the borrower. In cases of very early stage companies, factoring often provides the bulk of financing with a smaller inventory only component being added with the factor's assistance. Inventory loan facilities will also always require the personal guarantee of the business owner, something usually unnecessary for a standard factoring arrangement.

Find Out More

One of the best ways to further explore this powerful small business finance tool and to see if its right for you and your business is to request our informative booklet, "When Banks Say NO!...The Small Business Guide to Factoring." Its FREE, from Mango Factors. (click here to order)

Inventory Finance