STAND-ALONE INVENTORY FINANCE FROM $1MM TO $15MM
”TURN YOUR INVENTORY INTO WORKING CAPITAL”
Providing Revolving Lines of Credit to Businesses Selling to Other Businesses (B2B) or Direct to Consumers (D2C)
Inventory financing, at its core, is a form of asset-based lending in which the amount borrowed is determined by the value of your inventory. Typically, it will be a short-term loan or a line of credit; lenders will lend a percent of the inventory’s value. There’s usually no need for collateral since the inventory secures the loan. Inventory lines of credit work well for many industries, including: E-commerce, Retail, Consumer Goods, Distributors, Manufacturing, Food & Beverage, and more…
TRUE REVOLVING INVENTORY LINES OF CREDIT FROM $1MM-$15MM
FLEXIBILITY
A revolving line of credit allows you to better manage your working capital needs. No more scrambling to borrow at high costs to meet payroll expenses or to purchase supplies to fill orders.
TAILORED FACILITIES
We can tailor the loan sizes, maturity, and repayment terms to meet your needs. Our loans range from $1MM to $15MM and can be structured as interest-only revolving lines of credit.
NO HIDDEN FEES
We offer competitive rates & disclose all costs up front. We do not charge any management or servicing fees. No surprises.
PROMPTNESS
Receive a financing solution as fast as 24 hours after submitting the preliminary documents. Our expertise in the space allows us to quickly analyze and create a tailored solution based on your needs.
STAND-ALONE INVENTORY FINANCE
Why do I need it? If you are looking for a line of credit and are sitting on significant equipment or inventory, you can leverage those assets by securing an inventory line. Proceeds can be used for acquisition, unexpected expenses or for general working capital needs.
How does it work? We will evaluate the liquidation value of the equipment/inventory and assign a value. You can elect to draw down on the line at will, and only pay interest costs monthly, like a home equity line of credit. We will advance either the lower of cost or the Net Orderly Liquidation Value.
How much does it cost? As with all asset-based lending, the cost varies for each transaction. The monthly percentage is based on:
How liquid the inventory is (liquidation value)
Where its located (centrally vs spread out)
Whether or not its perishable, or fad related
Inventory financing is a good way to leverage existing goods for additional purchases. Unlike AR or PO, this functions more like a traditional line, with interest only payments until maturity for only the portion of principal you draw down.
How long does it take? From the time you submit the application and due diligence materials, it takes approximately a week to underwrite, after which an appraiser is sent to value inventory. To close the process takes approximately 3-4 weeks.
Submission/Approval Process? Initial submission for qualification consists of:
Completed and signed application
Current financials including AR aging and AP
Complete inventory list with locations
Once this is all received and evaluated, LVRG will issue the client a term sheet and closing list. LVRG offers “True Revolving Inventory Lines of Credit from $1,000,000 to $15,000,000.” Click below to get started!
