Inventory loan

A secured short-term loan to purchase inventory. The three basic forms are a blanket inventory lien, a trust receipt, and field warehousing financing.

Inventory Financing

A loan or line of credit available to a business secured by its own inventory. That is, a business places its inventory as collateral in exchange for an operating loan. Inventory financing is advantageous for businesses with a large amount of physical inventory ready to ship. Inventory financing is used as a stop-gap against temporary cash flow problems resulting from inventory ready to sell but not sold. It is not recommended as a long-term financing tool.

单词	inventory loan
释义	Inventory loan Inventory loan A secured short-term loan to purchase inventory. The three basic forms are a blanket inventory lien, a trust receipt, and field warehousing financing. Inventory Financing A loan or line of credit available to a business secured by its own inventory. That is, a business places its inventory as collateral in exchange for an operating loan. Inventory financing is advantageous for businesses with a large amount of physical inventory ready to ship. Inventory financing is used as a stop-gap against temporary cash flow problems resulting from inventory ready to sell but not sold. It is not recommended as a long-term financing tool.
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