Inventory Financing Unlocks Growth for Scaling Businesses
As a business owner, you know that growth requires investment, but traditional loans can limit your flexibility. Inventory financing provides an alternative solution that empowers rapid expansion on more desirable terms. This financing option allows you to leverage your inventory to free up capital and improve cash flow. By partnering with Manufactured, not only do you gain purchasing power, you unlock access to a broad network of suppliers and additional services that will help your business grow.
Win-Win Strategies to Secure Future Success and Mutually-Beneficial Outcomes
As your inventory financing partner, we work hard to develop win-win strategies that enable expansion while protecting all parties in our network. We purchase your inventory upfront on your behalf, then you repay us as that inventory is sold. This model frees up funds that would otherwise be tied up in inventory to acquire more raw materials, finished goods, and other assets to meet rising customer demand.
Some key benefits of this model include:
- Immediate Access to Capital – Get funding fast without waiting on traditional loans.
- Increased Buying Power – Unleash working capital to make bigger purchases.
- Flexibility – Adjust inventory levels as market demand and business needs change.
- Risk Mitigation – Avoid losses from excess or obsolete stock. Inventory financing boosts resilience.
Protecting All Parties: Why We Request UCC-1 Filings
Since the inventory itself serves as collateral against the funds we provide, its standard practice for creditors like us to file a UCC-1 as part of the inventory financing process, which simply shows that the inventory being financed is also being used as collateral.
The primary reasons we file a UCC-1 are:
- Inventory gets mixed post delivery, making it hard to separate should a borrower default or worse, shut down.
- Inventory turns into cash/receivables. When sold, it can no longer be used as collateral, so we need to secure future revenue.
- A UCC-1 ensures we can reclaim the inventory we paid for should an unlikely issue arise.
In short, the UCC-1 filing safeguards against repayment issues or other unforeseen circumstances and ensures we can recover our finances in the rare case of default. Since the vast majority of borrowers are responsible businesses that repay their loans, there should be little cause for concern when filing a UCC-1 as the risk of a capital claim is extremely rare. Furthermore, once repaid, the UCC-1 is terminated.
In cases where our merchant partner reimburses us for the inventory at the time of delivery, we operate a little differently. In this scenario, we manage warehousing and transfer ownership of that inventory as the product sells. Under this model, we would not extend repayment terms post-sale, so the UCC-1 is not needed at all.
Weighing the Risks and Benefits
The negligible risks of UCC-1 filings pale in comparison to the substantial benefits inventory financing provides. The capital and flexibility to fuel growth far outweigh the theoretical risks of a default leading to a collateral claim. Financing empowers current growth, and collateral procedures ensure it is sustainable into the future. While it can seem daunting to take on collateral-backed debt, there is a far greater risk of running into a cash flow crisis by operating with too little capital.
The time for growth is now. Let us provide the customized inventory financing solution you need to make it happen.
Don’t let cash flow limitations or financing complexity slow your growth. Inventory financing delivers working capital fast, allowing you to scale efficiently. Partner with a provider who takes the time to understand your business goals and has the experience, resources, and expertise to help you achieve them. Together, we can unlock the power within your inventory to take your company to new heights.
Learn how to apply for a vendor financing, and get help receiving purchase order financing. Manufactured helps customers in over 20 categories across 25 countries with Private Label Products Financing for Amazon Sellers Inventory Financing