[Sachip24]

any lenders do lines of credit based off inventory, im not looking for ABL or any type of factoring. Strictly a line of credit program based of the merchant different inventory. Has about 500k worth of inventory on hand always resale value about 850k. Different kinds of inventory (jewelry, art, firearms, nothing perishable). Please PM if you are a lender with this type of program.

[Quick Funding Solutions]

any lenders do lines of credit based off inventory, im not looking for ABL or any type of factoring. Strictly a line of credit program based of the merchant different inventory. Has about 500k worth of inventory on hand always resale value about 850k. Different kinds of inventory (jewelry, art, firearms, nothing perishable). Please PM if you are a lender with this type of program.

We have lenders who are capable of creating lines of credit based off of inventory. The value of the inventory and historical financials of the business help determine the size of the line.

Key Factors:
1) The loan to value, as is modified by the turn rate of the inventory and the ability to liquidate the inventory.
2) Where the inventory is being held? Is the client holding the inventory or is it being held at a 3PL (Third Party location)

Jewelry or art? These items require specialized financing as there is more of a risk that the objects could be moved. We have multiple lenders who do inventory, but we will need more information.

A call can be arranged to go over the initial info and get you more insight on your client file. We are currently working on a multitude of inventory related deals. We look forward to helping you and your client.

[abfunders]

I almost arranged a 7-year term loan amortized over 7 years (at 7.5%) for $450,000 for inventory worth around $500,000 once.
Then we pulled business credit, and found out that this guy defaulted on 5 MCAs before he changed his LLC. That killed it. Otherwise, it would have been an awesome deal to re-fi his $100,000/month MCA payouts (total debt of $450,000).

A LOC may be doable for the right business structure and various financials. Doing one now for $4mm term loan plus a $1mm LOC, using their inventory, AR and just about everything else.

BTW, if he's got equity in property and a 620 FICO, LiftForward can do that deal.

[NickHubbard]

https://www.newtekone.com/loans/lines-of-credit/

[Sachip24]

https://www.newtekone.com/loans/lines-of-credit/

thank you NIck, I am currently working an SBA with Newtek and absolutely hate how everything is done via a portal and rep there never ever answers his phone.

[RichardGerard]

There are many Asset based Lenders that can provide liquidity from Inventory. Bear in mind that the velocity with which the inventory moves will be taken into account for value sake. For example: if the inventory sits for an extended period of time the value in the eyes of the lender is more less valuable than the value of a receivable- which typically turns in 45 days.

M and E and Inventory are the add on piece to an Asset Based credit facility- kind of like dessert. The AR is main course..

RG

[RichardGerard]

I almost arranged a 7-year term loan amortized over 7 years (at 7.5%) for $450,000 for inventory worth around $500,000 once.
Then we pulled business credit, and found out that this guy defaulted on 5 MCAs before he changed his LLC. That killed it. Otherwise, it would have been an awesome deal to re-fi his $100,000/month MCA payouts (total debt of $450,000).

A LOC may be doable for the right business structure and various financials. Doing one now for $4mm term loan plus a $1mm LOC, using their inventory, AR and just about everything else.

BTW, if he's got equity in property and a 620 FICO, LiftForward can do that deal.

Nice Micah congrats.. Is now the time we all get to say how big the deals are we have funded? lol