To keep up with the latest trends, you’ll need to achieve a level of flexibility in your inventory management system. It’s crucial to have a steady supply of inventory while remaining agile enough to increase or decrease stock if demand suddenly changes.
Unfortunately, small businesses don’t always have the working capital to pivot according to the market. This can be particularly painful when time-sensitive opportunities become available, but you lack the necessary funds. Applying for inventory finance offers one solution – but is it right for your business?
Read on for more information on stock finance, how it works, and why a business loan from Fleximize can provide the perfect alternative.
What is inventory finance and how does it work?
Inventory finance, also known as stock finance, is a form of asset-based lending that can help boost cash flow. It enables business owners to raise finance by putting up their inventory as collateral, allowing them to purchase more items. This type of funding is useful for businesses that have to pay upfront for products that won't be sold until a later date, causing their funds to be tied up in stock.
If you're a small business that manages inventory, there are many products available including inventory loans, merchant cash advances, and invoice finance. The most suitable option may depend on whether you’re a supplier or a retailer. As with any financial product, there are always pros and cons to consider for each.
Stock finance for suppliers
Many B2B suppliers turn to invoice financing to help complete their stock purchases. However, you may have to prove that you have a large order from a reputable company to be eligible for invoice finance. In the UK, there are a number of lenders to choose from, but you may still struggle to find a cost-effective option.
Most traditional inventory finance products are fee-based. This means you could pay significant extra costs, even if you only need finance for a couple of months.
Stock finance for retailers
For B2C brands, retail stock finance tends to encompass a short-term loan or revolving line of credit, which typically use your current inventory as collateral. Other options include merchant cash advances, which allow you to borrow an upfront sum of money and repay the lender with a percentage of future sales.
However, these products can come with strict terms that may not suit your situation. If that’s the case, it makes sense to turn to a more flexible alternative. That’s where Fleximize comes in.
Inventory finance from Fleximize
As our business loans can be used for practically any purpose, they can provide a flexible and speedy alternative to traditional inventory finance. We offer unsecured and secured options with our Flexiloan and Flexiloan Lite. As time is often of the essence, we strive to deliver the funds within 24 hours of application. Here's a brief summary of the key features:
- Business loans of £5,000 - £500,000 over 3 - 48 months
- Secured and unsecured borrowing options
- Interest rates starting from 0.9% per month, charged on a reducing balance
- Approval and deposit in as little as 24 hours
- No hidden fees or early repayment penalties
- Repayment holidays and top-ups available with all loans
- Exclusive discounts on industry-leading business services
We've worked with many small businesses to help them find the right inventory finance solution. Unlike traditional lenders, you don't need to prove you have a vast existing inventory or large outstanding invoices to apply for a loan with Fleximize. We also look at more than your credit history. Therefore, even if you've not managed to secure finance from a high street bank or specialist lender, we could be able to support your growth.
What can a business loan be used for?
Unlike inventory finance products which have been designed solely to purchase stock, a small business loan can offer the capital you need to invest in many areas of your business. While you can use the funds to expand your product offering, your loan could also be used for:
Check your eligibility for stock finance in the UK
You may find that many stock finance providers follow a strict set of criteria, and will only approve your business if they're confident in the profitability of your product lines. We've kept our funding services open to as many businesses as possible, but there are a few basic requirements you'll need to meet:
- You must be a UK-based business registered with Companies House.
- You need to have traded for at least six months and have a minimum monthly turnover of £5,000.
- If you're based in England or Wales, you can apply for up to £500,000 on an unsecured or secured basis. For those based in Scotland or Northern Ireland, we offer secured loans of up to £250,000.
- We can offer up to £20,000 for non-homeowners, providing you've been trading for 36 months or more.
- While you don't need to offer your existing inventory as security to access a loan with Fleximize, like many lenders, we'll ask for a personal guarantee.
How much does inventory finance cost?
The interest rates on our loan products start from just 0.9%. Under our Penalty-Free Promise, you can repay early to save on interest without incurring additional fees. Our team will check that your loan terms are clear from the start, so there’ll be no nasty surprises.
The overall cost will depend on your unique situation, so we recommend using our business loan calculator to get an idea of your repayments. To receive a tailored quote, speak to a member of our team on 020 7100 0110.
Why choose Fleximize?
We’ve helped thousands of businesses to secure the funding they need to achieve their goals. If you’re currently weighing up your options, here are just five of the reasons why other customers chose us:
- Flexible: Our loans include repayment holidays, top-ups and a Penalty-Free Promise as standard, so you can manage repayments in a way that suits you.
- Fuss-free: It takes only a few minutes to apply online, and you should receive the funds in your account within 24 hours of being approved.
- Award-winning: We’ve twice been named Best Business Finance Provider at the British Bank Awards, among plenty of other industry prizes.
- Personal: You’ll get a dedicated relationship manager to help you every step of the way – including if you return for more funding.
- Trusted: Our case studies and a plethora of 5-star customer reviews are a testament to how highly our funding services are valued.
How our inventory finance solutions have helped others
Alan Barrie, owner of Montagne Sports, has twice come to Fleximize for a quick cash injection so he could seize a last-minute opportunity. In 2018, he spotted a chance to expand his product range when a supplier offered a bulk order at a discounted rate. Alan applied for a small business loan of £20,000 to secure the deal. Thanks to Fleximize's speedy deposit process, he was able to move quickly to develop his business.
Alan Barrie used a Fleximize business loan to purchase discounted stock
Apply for stock finance with Fleximize
We've ensured that applying for a Fleximize loan is fast and straightforward, so you can get back to running your business. Simply fill out our short application form and wait 24 hours for a decision. If your business passes our initial checks, a team member will be in touch to guide you through the final stages. Once we have the details we need, your loan could be deposited on the same day.
Alternatively, feel free to give us a call on 020 7100 0110 to learn more about how our solutions for inventory finance could benefit your SME.