What is stock finance?
Stock finance provides an ideal cash flow solution for businesses with surplus stock by releasing capital against inventory that would otherwise be tied up as raw materials, work in progress or finished goods.
Through stock finance, a lender purchases stock from you at a discount following a third party stock valuation to establish its true value. You then provide the funder with weekly or monthly stock listings before agreeing on future levels of funding.
What are the benefits of stock finance?
- A stock finance facility releases the working capital that would otherwise be tied up within your balance sheet to boost your business’ cash flow.
- The working capital released can be used to seek new business opportunities or to use as funding for growth and expansion through mergers and acquisitions, MBO and MBIs.
- Stock finance can be provided as a standalone product or as part of an asset based lending facility, which can leverage funding against additional assets such as debtors, property, plant and machinery in addition to surplus stock.
- Stock finance is used as a revolving facility to enable access to capital as and when you need it. It is therefore particularly useful for companies in the retail, wholesale and international trade industries as it allows for seasonal stock requirements.
- A stock finance facility can release funding against stock both in the UK and overseas.
- Also known as purchase finance, stock finance can be provided on a confidential basis.
Which stock finance solution is right for my business?
The exact level of business funding that will be available depends on the type of stock you are looking to release cash against, be it raw materials, work in progress or finished goods.
There is a range of stock finance solutions available from a number of lenders, but Hilton-Baird Financial Solutions has more than 13 years’ experience of sourcing the right business finance solutions to meet the individual funding needs of SMEs and corporates as the UK’s leading commercial finance broker.
Call us on 0800 9774833 or email info@hiltonbaird.co.uk to find out more about how a stock finance facility can release cash against your assets. Alternatively, get an online stock finance quote.
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