There are financiers who will advance funds against existing warehouse stock but only as part of a package of asset based lending. Such funding is not provided on a stand alone basis.
Stock will need to be finished goods and less than 3 months old. As a guide up to 50% of the cost of stock could be provided on a revolving 30 day credit line. The level of stock is reviewed at each month end and the level of funding is adjusted accordingly. Consequently, the stock advance will vary directly with trading activity in the business.
Such funding can be utilised for a wide variety of products, examples including:
- flooring
- furniture
- clothing
- homewares
- electricals
- toys
- giftware.