Inventory Financing

Inventory Financing

Glossary
Banking

Inventory Financing

Companies typically have considerable value tied up in inventory. As such, borrowers can use the value of their inventory as security for short-term, asset-based revolving credit lines known as inventory financing. This enables companies to unlock value tied up assets lying in warehouses to buy more inventory, cover business expenses, or supplement cash flow. Inventory financing facilities are paid off as inventory is sold.

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