What type of inventory financing is best for your business?

There are different types of inventory financing to consider:

1. Supplier

financing By means of financing offered by your own supplier, you can receive funds to use to buy inventory, and then return the borrowed funds in a short period of time. Unlike most forms of inventory finance, this is an excellent way for new businesses with no established track record to borrow money and thus start their business.

2. Line of credit

Through a line of credit, you have the flexibility to always have funds when you need them. You can use credit in certain situations, and not use the credit line when you don't need money. And if you don't use the credit, you don't need to pay any interest. In other words, unlike a loan for an established amount, with a credit line there is no fixed amount that you should use; You can simply use the funds to buy inventory whenever you want.

3. Short-term commercial loans

If you sell all your inventory, you can pay a short term loan quickly and without problem. You must be sensible about the amount of money you are going to request and feel confident that you will be able to sell all the merchandise you are buying to pay off the loan. A short term loan does not have to have a long term effect on your business. By reimbursing it within a maximum period of a few months, you will have obtained just what you needed and you can focus on other initiatives for your business: you should not be making monthly payments for years.

A short-term commercial loan from Camino Financial or a microloan could be the solution that best suits your inventory financing needs. In fact, many of our members they are using our loan funds for that purpose. When you apply for a commercial loan with us, we analyze your situation to find the best financing option for your company. We will study the purpose you have planned for the loan and make sure you feel comfortable with the fixed monthly payments and a convenient repayment period of between 18 and 24 months for our short-term loans. The amount of our microcredit loan varies from $ 5,000 to $ 75,000 to suit your needs, even if you are not looking to invest a large amount of capital in your inventory.

What else sets us apart from other inventory financing options?

• We have minimum requirements: you need to generate $ 30,000 in gross annual sales and have been operating your business for only 9 months.

• Our interest rates are reasonable.

• Our rates are low: the only rate you will have to pay is a start-up fee (6.99% on micro loans) and there are no prepaid rates if at any time you decide to pay your loan in full.

• You do not need to present a guarantee or any personal property to guarantee the loan. In the case of inventory financing, this means that you do not have to put the inventory that you are going to acquire as collateral.

• Our loan process is simple and fast: you can get the funds you need to buy inventory in just 2 days! This is an excellent opportunity if you want to take advantage of a special discount or a limited time offer.

• After 9 months of making payments on time, you can apply for a second loan for a larger amount and with a lower interest rate. This will give you the opportunity to get more inventory or improve any other area of ​​your business.

Do not let the shortage of cash flow prevent you from acquiring merchandise for your company. Through inventory financing, you can borrow the money you need to buy products to sell to your customers. You just have to make sure you find the most suitable option for your business and that best suits your goals.