The North American retail industry has seen rapid change over the last decade. As the environment gets tougher and tougher, retail inventory financing has become more important.
First it was the global multinationals, chipping away at the market share of independents and smaller regional chains. Then came online shopping, which left slower retailers in its wake. And of course, massive aggregators, like Amazon and eBay, have kept shoppers out of the stores and pushed margins down. On top of all these challenges, you also need to stay one step ahead of ever-changing consumer preferences and respond quickly to changes in an uncertain economy.
If your retail business has survived these seismic shifts, then you’re doing something right. But as a retailer, you know that your business is only as strong as the products on your shelf. Your product pipeline, the current assortment, and your ability to keep the shelves stocked are all keys to success for this season and the next. Inventory financing loans could be the answer to keeping your company running smoothly.
Why Use Inventory Loans?
Inventory financing consists of short-term loans or a revolving line of credit for companies to purchase their products they intend to sell. Inventory loans are small business loans usually classified as secure, as the business owner uses existing inventory as collateral instead of personal assets.
Retailers, wholesalers, and seasonal businesses benefit from an inventory financing loan when they most need it, especially during times of sale fluctuations. The last thing you need to worry about is retail inventory financing or paying your business expenses. You manage your inventory while Accord manages your financing.