We feel sorry for you. Your firm is not in the service industry. They are the lucky ones with respect to inventory financing – there is no inventory! Unlike your business, which produces goods and transport stocks to meet the needs of your sales order, your service companies have no storage requirements!
If your company has an investment in the inventory, the financing of this asset is often, if not always, vital. Funding via bank credit lines for the inventory component of your balance sheet is always difficult, if not impossible in some cases. Most corporate owners and financial managers are familiar with the two major current assets (receivables and inventory) that banks prefer to receive, AKA A / R funding. If you want to get more information about the finance management then you can visit at https://www.ukfinancehelp.co.uk/.
So how do you finance your inventory, and what are the requirements to get such a facility in place? The reality is that every business is different and your firm will have different categories of inventory – most commonly they are raw materials, work in progress, and finished goods.
Inventory financing in UK is most often funded by an ABL installation. Your ability to monitor, store and produce and bill and collect are the basic requirements for a stock financing center.