Inventory Funding

Finance your sales growth with an innovative inventory finance product - Minimum Facility $500,000

• Importer
• Manufacturer
• Distributor

What For:

• Funding to grow your sales
• Extended payment terms for purchases to increase purchasing capacity

How It Works:

• Fund up to 50% of the cost value of inventory purchases
• Settle the supplier for purchased inventory with up to 50% funded by the Inventory Facility and the remaining portion funded by the linked Debtor Facility
• Amount funded by the Inventory Facility is debited from the Debtor Facility and credited to the Inventory Facility in agreed monthly installments. The number of installments is determined according to the business stock turn cycle to a maximum of 6 months.
• The facility revolves as the stock turns into sales and future purchases are made.

What You Do:

• Details of inventory purchases are provided to the funder which are uploaded to their online business centre
• A tally sheet that reconciles the inventory movements since the last financing are also provided at each financing
• When funding the purchase of goods from a supplier, the funder may also require:
• Copy of purchase order
• Copy of invoice from Supplier
• Evidence of delivery
• Copy of on-sale purchase order if applicable
• Details of supplier payments due will be required so the funder can facilitate these payments

What It Costs:

• Once the Facility is operating, there are only two fees charged [except for minor transaction expenses].  These are similar to a Receivables Finance facility:
• A Usage Fee charged on daily balances of the amount of funds outstanding, and
• A Batch Fee based on the cost of inventory transacted at each financing [an account keeping fee]

What you Need:

• Maintained Accounting package (e.g MYOB) that tracks inventory movements by item
• A Receivables Finance facility must be established and run concurrently
• Trading in non-perishable finished goods (raw materials if saleable in raw state)
• Trading history (minimum 12 months) with minimum sales of $5m p.a
• Minimum stock turn of 4 times per year