[Triton]

Have a client with a little over $700k in inventory that he would like to use as collateral for financing.

Anyone know of which direct lenders offer this kind of financing. I don't have any in my network.

[RichardGerard]

There are several Lender Partners we work with Michael.. Biggest issue is the type of inventory, and whether or not there is proper automated accountability for it. Without that it's challenging to say the least.

Touch base if you'd like our assistance..

Richard 516 510 3855

www.businesscapitalconsultants.com

[Ktolbert85]

I sent you a PM

[bdshaw]

I sent you a PM

It's unusual for inventory to be financed without some sort of ABL that is used to protect the lender.
We would like to take a look at the deal to see if we could work with our inventory finance partner to create the type of financing your client could use.
Please answer a few questions such as what does the company do for a living? What is the inventory composed of?
Is the inventory seasonal? Does the company have positive cash flow? Is the any existing borrowing, if so, in what form?
Bob Shaw
734-929-3800
rshaw@millenniumfundingusa.com
rshaw@advancecredit.com

[AndyYSCISOdept]

I agree with Bob, the issue as I see it would be this, I could have 700K in inventory, but if 675 of that 700 has been on the shelf for 3 years then what is its true value? Need a lot more details.

[Triton]

Thats a good point.

Although this particular merchant is a wholesale furniture manufacturer. They sell to such places as Sams Club, etc. and internationally.

I'll look into that though.

[RichardGerard]

Bob's right: without knowing specifics and if there are UCC 1's on the assets- meaning they aren't his to leverage- there isn't much anyone can say about how to proceed with an LOC until the details are disclosed... Credit Facilities for less than 1M exist- but since Underwriting them is just as hard (if not harder) than lines above 1M, there are a handful of firms that specialize in them

[bdshaw]

Please let me add to Richard's scenario. What happens if the client does not sell all of the furniture. The lender certainly doesn't want it. That is one of the many reasons that inventory deals often come down to the company's historic cash flow as described in financial statements.
There are more "Commercial deals" showing up in this space. If brokers are overlooking them they are losing money they could be making.
If you would like more information about how to work within a muti- billion industry feel free to contact me. Im sure Richard would be glad to talk to you also.
Bob

[VFG]

What's your client's industry? If wholesale, then the client better have receivables with creditworthy clients and a perpetual inventory system. If they trade in the retail space, then most of their sales better be via credit/debit cards. The few stand alone inventory lenders I know will require for the client to either have a factor in place or a merchant account so they can secure a takeout.

If you need assistance I'm happy to help I have a good inventory lender I can introduce and we can work together and take him out on the factoring side.

Let me know. Good luck!

[VFG]

Triton my apologies did not read the furniture part. You will need both an inventory lender and a factor who can work with the international accounts. Happy to propose on this one if you need help