Inventory Factoring

Inventory Factoring

Inventory Factoring

oboloo’s Glossary

Inventory factoring is a way to turn the inventory you own into immediate funds. By selling off your inventory to an independent factor, or lender, businesses can get a cash infusion without having to secure traditional financing. In exchange for the funds, the lending company takes ownership of the inventory and then resells it back to customers for a profit. It’s a win-win situation for both parties: you get quick access to capital, and the lender makes money when they resell the goods. Plus, because this type of funding isn’t tied to your credit score, it’s easier to access, even for businesses with a poor track record of managing their finances. With inventory factoring, you can unlock the potential of your business without worrying about cumbersome bank loans.