inventory loans

An inventory loan is a type of financing where a business borrows money using its inventory—such as goods held for sale—as collateral. This helps businesses access cash quickly to manage operations, purchase new stock, or cover expenses, without selling their inventory outright. The lender assesses the value of the inventory and provides a loan based on that amount. As the business sells or replaces the inventory, it repays the loan. This financing method allows companies to leverage existing stock to support growth and cash flow needs efficiently.