Business stock finance
Business stock finance is a revolving credit facility that can help businesses to raise additional working capital, normally in conjunction with an invoice discounting facility. Typically, the facility is made available against stock (raw materials and finished goods) with the advance linked to the appropriate valuation.
The benefits of business stock finance are:
- A revolving credit line against stock
- A smoothing out of cash flow for seasonal business
- It provides flexibility
This type of finance facility also works well for a business involved in a Management Buy Out (MBO) or Management Buy In (MBI) or where a business is involved in a turnaround arrangement or a Company Voluntary Arrangement (CVA).