Using Alternative Capital to Meet Inventory Demands

by / Wednesday, 07 May 2014 / Published in Retail Business Financing

bad credit business loans

A business’s inventory is not only part of its overall value, it is also what allows it to pursue larger contracts or orders with confidence that client demand can be met. While having excess inventory on hand is a waste, having too little inventory puts business owners at a disadvantage when trying to expand. If they approach larger clients hoping to secure the business they need to grow, they may all of a sudden be asked to handle orders that are much larger than they are accustomed to processing. If they are not stocked with the inventory they need, without a means of rapidly acquiring it they could lose the business they worked so hard to win.

Bad credit business loan alternatives offer a solution. While a traditional small business loan requires a lengthy process of due diligence, alternative capital providers generally require less information and therefore are able to approve and fund accounts in a much shorter period of time, often within the 48 hours after a business owner applies. The size of an approval is mostly based off of the strength of the sales deposits in a business’s primary account. For both of these reasons, using these products to meet increasing inventory demand can work in the favor of a business owner.  The higher their sales climb and the longer they maintain a positive relationship with the funding company, the more they will be able to be approved for. The short period of time that an application can be funded in means that they can apply for capital and turn it into inventory on an expedited basis in response to a client request, allowing them to avoid taking financing that they will not be able to allocate in a manner that promotes growth.

Photo Credit to Anthony Easton on Flickr

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