Asset-Based
Lending: A
Proven Tool for
Retail Inventory
Financing

Whether you’re a specialty retailer, a direct marketer or e-commerce shop owner, get liquidity and credit facilities by leveraging your inventory.

Retail inventory financing enhances the value of your products

Financing options for retailers operating in the mid-market space are limited, but Accord offers a retail inventory financing solution by providing asset-based loans to retailers using their inventory as collateral. Retail inventory financing allows you to purchase fresh inventory and ensure that you always have merchandise available.

Competition for consumer spending is fierce and coming from all sides. Global, omni-channel retailers have changed the retail industry at a dizzying rate.

From digital marketing to ever-evolving payment options, the retail landscape continues to change, but what remains the same is that as a retailer, you need to have what your customers want, at a competitive price and timely to their purchasing decision.

Online availability, the ease of comparing prices, and option for home delivery, means retailers like you need to devote your time and energy to buying, merchandising and selling—not worrying about your day-to-day financial needs.

Accord understands the challenges facing the retail industry.  We have been doing retail inventory financing and giving credit to retailers across North America for over 40 years. Our team of seasoned professionals will help structure the right retail inventory financing package for you.

If you are looking to grow your retail operation—either organically or via acquisition—retail inventory financing allows you to purchase fresh inventory and ensure that you always have merchandise available, even if you don’t have the cash to purchase it.

A revolving credit facility doesn’t leave you dependent on customer purchases for cash flow, especially if sales are sluggish or it is off-season. The need for working capital never ends, so for many retailers an asset-based loan supported by retail inventory as collateral is a superior alternative to conventional bank lines. The absence of covenants and debt-to-equity conditions is where the benefits of asset-based loans really stand out.

Retail inventory financing can also provide the extra funds you need to grow by increasing your online presence or investing in digital marketing. Conversely, if closures and downsizing have affected your retail business and you are undergoing a turnaround or need debtor-in-possession financing, we can help there too.

Virtually all types inventory qualify for retail inventory financing. If your inventory can be appraised, it likely will qualify.  Some of the types of retailers we finance include:

  • Furniture & Décor
  • Footwear & Apparel
  • Sporting Goods
  • Home Improvement
  • Electronics
  • Pet supplies
  • Department stores

We are dedicated to understanding the unique needs and challenges of your retail business—this ensures that our comprehensive financing solutions are packaged specifically for your retail business.

To qualify for a retail inventory asset-based loan:

  • Need to borrow between $1 and $20 million
  • Merchandise and inventory value to support loan amount
  • Inventory management system that can provide timely information
  • Agree to an appraisal of your inventory

The benefits of asset-based lending to finance retail operations are numerous. Using your retail inventory as collateral for a revolving asset-based loan facility unlocks the value in your inventory and converts it into the working capital you need to buy merchandise and pay expenses.

The flexibility of asset-based retail inventory financing better suit your needs as a retailer than conventional lines of credit. With no covenants, seasonal dips and peaks are a non-issue, because only the value of the assets—in this case the inventory—determines your available funding.

Frequently Asked Questions

Retail financing refers to financing options available to retailers. These loan facilities typically leverage your inventory as collateral.

We offer a number of asset-based loan facilities, which can be used by retailers like you to finance your inventory and other working capital needs.

Using your assets as collateral, you can take advantage of retail inventory financing which leverages your inventory or supply chain financing to finance the purchase of inventory through overseas supply chains. Other finance strategies may include accounts receivable financing, or for smaller retailers, small business loans.

Asset-based retail financing provides maximum flexibility in a variety of circumstances such as

  • refinancing
  • rapid increase in customer orders
  • outstanding accounts receivables

No matter what challenges your company may be facing, retail financing is the solution.

Retail financing is offered to a vast majority of retailers, including:

  • furniture
  • sporting goods
  • electronics

Yes! Get financing for your retail business, whether large or small, with small business financing loans up to $75,000 customized for your company’s needs. Call us to discuss how you can benefit from small business financing specifically tailored for retailers: +1-844-932-9940 (Canada) / +1-844-725-4225 (US)

Retail financing moves at the speed of your business; so you can quickly obtain the working capital you need. Financing can often be approved in as little as a few weeks.

The best retail financing companies have a long record of success with a variety of retail clients, like Accord, where we have been working with retailers for over 40 years, and are able to provide your company with flexible terms that meet your timelines and enable your business to prosper.