Inventory Finance

What is Inventory Finance?

Inventory Finance provides businesses with finance for the purchase of inventory for manufacturing or resale to their customers.

It's suitable for manufactures, wholesalers and retailers who purchase stock from Australia or overseas suppliers.

What makes Inventory Finance unique is that the stock to be financed does not have to be pre-sold, invoiced and delivered. Additionally, our clients are not required to provide real estate security. Inventory Finance offers approved clients:

  • A revolving line of credit with facility limits ranging from $400,000 to $3.0m
  • Individual advances from as little as $100,000 and for terms ranging from 30 to 120 days
  • Loan advance rates of 90% inc GST of your supplier's invoice amount
  • Funding inclusive of freight, customs and import duties and custom agent fees, where suitably invoiced
  • Additional loan extensions of up to 60 days to match the repayment to your cashflow
  • Access to additional working capital to meet increased demand during peak seasonal periods
  • The ability to finance all types of stock, ranging from raw materials to finished goods and work in progress
  • No repayments until the conclusion of your nominated term
  • Clear and transparent pricing, with no annual line fees, account keeping fees or audit fees
  • A flat transaction fee for the term of your advance
  • Simple credit criteria and quick approvals

Why was Inventory Finance introduced?

Inventory Finance is designed to fill the gap that traditional banks have left behind.

When a commercial borrower's financial requirements for their business supersede the value of their real estate, they can now look to Inventory Finance for the fulfilment of their business growth potential.

Importantly, Inventory Finance does not lock up your real estate and will lend based on the track record and strength of your business. We also don't rely on your receivables for security like debtor finance, so there's no requirement for presales or cumbersome administration. Unlike trade finance, we don't require your stock to have arrived in Australia, we fund at the time of purchase, i.e. before it's been shipped.

Will my business qualify for Inventory Finance?

We've specifically designed inventory finance to suit successful, profitable Australian businesses that:

  • Are in the business of importing, wholesaling, manufacturing or retailing
  • Have been established for 5 years, or 3 years with strong management experience in a similar business
  • Have sales of $3m to $50m pa
  • Have gross profit margins of 20% or more
  • Had a pre-tax profit last financial year
  • Have their last two years financials available and interims if these are older than six months
  • Have demonstrated company strength through net equity being in line with the facility limit sought
  • Turn over stock three times a year or more

If you have any enquiries, feel free to fill out the form below.

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Contact Details

Aurora Place
Level 25, 88 Phillip St
Sydney NSW 2000

Telephone: 02 8211 0586       Fax: 02 9251 0039       Mobile: 0412 141 711

Email: info@financedotcom.com.au

All Mail: P.O Box 1690 Double Bay, NSW 2028

 

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