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.