Cash Flow vs Profit: Why Cash Flow is the Lifeblood of Business Success
Cash flow is key for business success. Learn about the definition, and how managing cash flow effectively ensures financial stability & long-term growth.

Inventory loan is a form of asset-based term loan in which a lender provides you with capital to purchase inventory.
While lenders usually require equipment or real estate assets as collateral for bank loans, an inventory loan is collateralized by the inventory you purchase. In other words, the creditor will seize and sell your inventory if you fail to repay.
Inventory loans are helpful for preparation of peak seasons, during which you need to make bulk purchases of goods that tie up a significant amount of capital.
However, this type of loan may not give you sufficient funds to support business growth, such as product launch or market expansion.
Grow your business with Choco Up

Cash flow is key for business success. Learn about the definition, and how managing cash flow effectively ensures financial stability & long-term growth.

Proactively securing funding is crucial to to avoid missed market opportunities. Learn how Choco Up's seed funding can help your business scale.