No Sales Minimum
When you have opened up your supply business, you will want to know where and how to get your inventory. However, you also have to bear in mind that as a start-up, you will be looking to start with a small inventory, as you will most likely be meeting smaller orders. Thus, you will be looking for manufacturers and wholesalers who allow you to buy at no minimum orders. There are many ways to pay for inventory, but it is important that you keep it at a minimum and only buy more when you are about to exhaust what you have in your stores.
However, with time, you could get more orders than you are able to handle. As a startup, you may not have the money to get all the required inventory at that time. You have to get inventory from somewhere, or an inventory loan from a lender so that you can stock up. Inventory loans come in various forms, but the most notable thing about them is that they are designed for inventory alone. However, you can also be allowed to use the loan in any way you want.
Inventory financing programs
By using an inventory-financing program, you can get inventory at no cost at all. Also, there will be no attached prerequisites like having to sell a certain minimum for you to qualify for the loan. Some lenders want to see proof that you indeed make sales every day before they can advance you this loan.
It is not a bad thing in itself because the lender wants to be sure that there will be enough sales being closed to be paid. However, being a small business just coming up, you may find it hard to record consistent minimum sales every day of the month.
Finding a financing program for inventory allows you to concentrate on other aspects of the business like customer service and chasing sales. After all, you are now not worried about the stock.
Usually, the lender of this loan will act as your liaison between the supplier and you such that they buy on your behalf. They will then put you on a payment schedule that you can meet comfortably, perhaps a daily, weekly or even a monthly payment schedule.