What is an Inventory Loan? Here's Everything You Need To Know
Inventory loans help you stock up against busy times, using the stock itself as collateral. But they might not cover other growth needs.
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Invoice discounting enables you to take out a loan using unpaid invoices as collateral.
The loan amount typically ranges between 80% to 95% of the value of the invoices, which you will pay back (with interest) once you receive payment from your customers.
In this example, you will be given $10,000 x 80% = $8,000 of cash. After you have collected on the invoices, you will pay back $8,000 plus the agreed fee to the lender.
Grow your business with Choco Up

Inventory loans help you stock up against busy times, using the stock itself as collateral. But they might not cover other growth needs.

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