The Cost of Waiting: How Delayed Funding Can Derail Your E-commerce Growth
Proactively securing funding is crucial to to avoid missed market opportunities. Learn how Choco Up's seed funding can help your business scale.
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
Proactively securing funding is crucial to to avoid missed market opportunities. Learn how Choco Up's seed funding can help your business scale.
Bank loans and equity financing can support your business goals in different ways. Explore the difference to know what’s the right next step for you.