Stay Ahead on Amazon:
How Inventory Financing Can Fuel Your Sales
If you’re looking to expand your Amazon retail business, one great way to do so is by diversifying your inventory or products. However, this usually requires additional working capital, which can be hard to have unless you look at outside sources.
Deciding when (and how) you want to obtain small business funding for your business is a big but important step. Getting funding before you have a steady revenue can hurt your business. You could find yourself in debt and unable to pay the loan back. But waiting too long for funding can hurt your business as well. You may miss out on potential growth opportunities or vendor deals.
With BitX Funding, you can access a large inventory line of credit to grow your business. With Amazon, you are capped at $1 million in available credit. Find how you can grow your inventory from there. Unless you take out expensive MCAs that steal all your profit margin, you can’t. At BitX Funding, we will provide you with proven funding for Amazon Power Sellers to grow past $1 million in inventory.
Why do I need inventory financing?
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 general working capital needs.
How does inventory financing 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 cost or the Net Orderly Liquidation Value.
How much does inventory financing cost?
As with all asset-based lending, the cost varies for each transaction. The monthly percentage is based on the following:
- How liquid is the inventory (liquidation value)
- Where it’s located (centrally vs. spread out)
- Whether it’s 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 the 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.
The initial submission for qualification consists of:
- Completed and signed BitX Funding application
- Current financials, including AR aging and AP
- A complete inventory list with locations
BitX Funding is an online marketplace for small business owners looking to fund a project. We specialize in connecting small business owners with lenders who will compete for your business. We believe small business owners drive the economy and are passionate about helping your company reach its full potential.
You can reach a loan specialist toll-free at 1-800-824-2407 or email [email protected] or apply online here, and we can guide you on which loans are the best fit for your business.