Business Lines of Credit and Loans for Inventory Financing
Use inventory loans to manage assets and liabilities in your storeroom or warehouse
As a small business owner, you may need financing to help manage short-term assets such as inventory. Keeping inventory on hand can be expensive, but inventory financing can help provide the liquidity you need to continue to grow your business. When you need to cover the cost of keeping your products on the shelf without restricting your cash flow and business operations, a working capital line of credit may be the right option for you.
Consider working capital loans instead of inventory loans secured with collateral
Some inventory financing and inventory loans use your inventory as collateral on the loan. Citizens Bank offers some alternative options in the form of a line of credit or working capital loan.
- A business line of credit is a revolving credit option, which means you can pay it off and borrow again. Use it to manage cash flow or purchase short term assets like inventory. If your take out a working capital loan* over $50,000, it becomes an All Business Asset Lien, or ABA Lien and is secured by your business assets, excluding real estate. A working capital line of credit is a great option for managing inventory expenses throughout the year.
- A Business Flex Loan from Citizens Bank is a cross between a line of credit and term loan. It allows you to borrow up to $100,000 in six months without repayment to give you the short-term boost in liquidity you need to keep growing. After the borrowing period ends, you will need to begin amortized payments just as you would on a term loan.
*Working capital is a measurement of your assets in relationship to your liabilities. Working capital loans are designed to give businesses a short-term boost in assets in order to help improve operations costs.
The benefits of securing inventory financing from Citizens Bank
Choose inventory loans from Citizens Bank to increase your company's liquidity while retaining full control of your assets. When obtaining inventory financing from other private lenders, it's possible they may not only mark your inventory as collateral, but also require you to store it in a warehouse they control. Maintain control of your inventory with business lines of credit and working capital loans from Citizens Bank. Speak to a Business Banker today at 1-800-4BUSINESS to determine which small business loan option will best suit your needs.