Inside Money Today

Lendinero's blog on Growing Your Business

Apparel companies can use a business loan to increase inventory

Apparel companies can use a business loan to increase inventory

Apparel companies can use a business loan to increase inventory.  A short-term business loan is a useful tool to increase apparel inventory.   Your sales cycle may range from 1 to 4 months from the time you place an order to the time it arrives to the time you sell the inventory.  Your profit margins can range from 10% to as high as 100%.   If you purchase apparel you usually have a fast turnover rate.  A short-term loan ranging from 4 months to 6 months can help you not only buy more inventory and increase sales as well.  Rather than reinvesting your profits or using your own money you can use a business loan and still come out ahead.  If you were to pay even 2% per month and you can make a 10% gross profit you can still make 8% per month.  When you do this every single month in 6 month you have increased your earnings by 48%.  This is how a business loan can be used at your apparel company to increase inventory and earnings.

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