Inventory Financing
/ɪnˈvɛn.tɔːr.i ˈfaɪ.nænsɪŋ/
Definitions
- (n.) A type of secured lending where inventory is used as collateral to obtain funds from a lender.
The company secured inventory financing to increase its working capital during peak season.
Forms
- inventory financing
- inventory financings
Related terms
See also
Commentary
Inventory financing often involves detailed valuation of inventory and requires precise contractual terms to define collateral rights and default remedies.
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