Retail stores, supermarkets, clothing stores, and product distributors are all examples of businesses that can benefit from obtaining funding to purchase inventory. If you decide to fund inventory purchases, first you need to decide what will be the cost of the purchase. How much money do you need to make your next purchase?
This type of financing is suited to businesses that sell a tangible product. When you purchase tangible products to keep your business alive aside from cost you need to take other factors into consideration. What are some of those other factors?
Seasonal trends If your cash flow is a roller coaster this will affect both your purchases and the financing you can obtain to acquire inventory. Don’t wait for your cash reserves to drop before you obtain financing. Obtain financing prior to your seasonal downfall to acquire inventory and to stock it before the downward trend.
Discounts When you purchase volume or there are buying opportunities you may be able to obtain a discount on the inventory you purchase. This is an ideal time to fund inventory purchases. When you obtain a discount on the products you will increase your profit margins.
There are various funding solutions to fund inventory purchases. Some of the items that you will need will include: business bank statements, purchase history, vendor references, and perhaps an accounts payable and accounts receivable ledger.